STW receives permission to drill more wells at Capitan Reef aquifer in US

US-based STW Resources Holding has received approval from Middle Pecos Groundwater District for drilling two development water wells in order to determine the potential capacity of Capitan Reef water aquifer.

A recent hydrological study has already indicated that the aquifer can produce more than 100 million gallons per day of water for more than 100 years.

STW will drill and complete the production wells and run the flow rates to find out about the parameters of the reservoir.

The approval follows the lease agreement with the city of Fort Stockton on municipal land, which had allowed drilling of multiple water wells.

Water from the aquifer will be distributed among the local west Texas municipalities and industrial customers by STW.

STW has secured permission to sell water contracts to beneficial users for an agreed term of the contract or up to 30 years.

The project is intended to be developed in three phases, with the first phase costing around $18m. STW is presently inviting investors for partnering or financing the project.

STW water president said: "This joint effort between STW and the city of Fort Stockton will provide water to thousands of west Texans and not to mention create revenues for the town."

The company has already agreed with the city of Fort Stockton for construction of multiple water stations to supply water to the industrial customers.

STW is also planning to contract a 189-mile pipeline through the Permian Basin in west Texas, which it plans to use for supplying water to nine communities.