GREAT SOUTHWEST REGIONAL

Transcription

1 JULY 2016 VOLUME 1 ISSUE 2 GREAT SOUTHWEST REGIONAL CENTER NEWSLETTER INSIDE THIS ISSUE THE REGIONAL CENTER TEAM IS GROWING SALTWATER RECYCLING FACILITY UPDATES AND BENEFITS INCREASES IN OIL PRICES ON THE HORIZON? WASTEWATER TREATMENT BOOMS WATER SYNERGY THROUGH ABOVE GROUND REMEDIATION THE REGIONAL CENTER TEAM IS GROWING RICHARD HARDIN Richard Hardin s diverse background includes positions in the oil & gas exploration industry from roughneck to president of Hardin Oilfield & Underground, Inc. Since 2008, Mr. Hardin has served as President of HO&U specializing in centrifugal pumps, fluid movement and solids control systems design. RICHARD HARDIN VICE PRESIDENT OF OPERATIONS

2 2 AN TRAN Ms. An Tran recently joined the team at GSWRC, LLC as a Research & Development Assistant, and works out RICHARD HARDIN Mr. Hardin retired as a Major from the U.S. Marine Corps in As an officer, he was responsible for project management of an experimental airborne communications platform, (IAC3), for the Marine Corps Warfighting Lab. Mr. Hardin studied petroleum technology at Tyler Junior College and at The University of Texas in Austin. He holds a BS in Aviation Management from Southern Illinois University at Carbondale. AN TRAN of the corporate headquarters in Austin, Texas. Prior to joining the team, in May 2016, An earned a B.S in Chemical Engineering and Minor in Mathematics, Chemistry, and Music from McNeese State University, in Lake Charles, LA. While attending McNeese, An acted as a Research Assistant and studied the Production of Fresh Water from Sea Water and conducted research on Ethylene/Propylene separation, Vinyl Chloride, and Ethanol Production. An also served as a Teaching Assistant, Lab Coordinator, and Tutor at McNeese State University.

3 3 SALT WATER RECYCLING FACILITY UPDATES THE PERMIAN BASIN TEXAS COUNTIES IN THE PERMIAN BASIN According to Forbes Energy, The Permian Basin has long been the most important oil and gas producing area in the United States. The Permian Basin is a significant oil producing area covering 59 counties in West Texas. The Saltwater Recycling Facilities (SWR) in both Ward and Reeves Counties are located in the Permian Basin. The SWR s provide saltwater recycling services to the West Texas oil and gas industry, also located in the Permian Basin. Reports continue to predict the oil production in the Permian Basin will increase through E&P Magazine credits this continued success to the established infrastructure (some wells dating first production to 1920 s), proximity to the Gulf Coast, and well known formations.

4 4 WARD COUNTY Bring on the water! Situated perfectly in the Permian Basin, the Ward County Saltwater Recycling Facility is days away from recycling its first barrels of water.

5 5 KEY BENEFITS OF THE SWR FACILITY PROJECTS 1. LOCATION - West Texas Permian Basin oil patch of Texas, the region with the largest number of producing wells and the most rapid growth in new oil production. 2. STABLE TEA - $ 500, investment level, qualifies for approval as a Rural Project. This designation is unaffected by the newly proposed EB-5 legislation, unlike the Big City, urban projects. 3. PREDICTABLE JOB CREATION - which is critical in meeting the requirements to qualify for the green card. Expenditure model economic study conducted by Kim Atteberry, former Chief Economist at USCIS. 4. PROJECT OWNS THE LAND - for the facility. All components of the facility are prefabricated, allowing for a 90 to 120-day construction timeline. This provides documentation for the expenditure model (job creation requirement) in the very earliest stages of the project. 5. SOLID EXIT STRATEGY - in place to return all of investor s original investment based on cash profits generated from the project s strong cash flow. No need to sell the property or refinance to pay off the EB-5 loan. 6. FIRST POSITION - EB-5 investors have a first priority security interest in all of the projects assets (land, equipment, accounts receivables, etc.) that are pledged as collateral against the EB-5 loan. 7. ECO-FRIENDLY -our projects are Green Projects that protect the environment by recycling the wastewater created from oil production. Unlike our competition, we remove the chemicals and solids, and dispose of the waste without the use of injection holes that force the water back into the earth. 8. CUTTING EDGE TECHNOLOGY - we have an exclusive water polishing technology that removes all of the skim oil from the produced water at cost and volume levels unmatched in the industry. 9. USCIS DESIGNATION - Great Southwest Regional Center, LLC received approval from the USCIS as a Designated Regional Center in May of ELITE TEAM OF PROFESSIONALS - during the past four years, GSWRC has assembled an elite team of professionals, comprised of pre-imminent Immigration and Securities law firms, Economists, Business Consultants, and Project Developers.

6 6 UPDATES IN THE OIL AND GAS INDUSTRY Sources continue to predict an increase in oil production and oil prices. The predictions are based on several factors. On the forefront, those contributors include reduced stockpiles of over supplies and an increase in demands in Asian for new development. Oilprice.com reports, The oil glut is over, says the world s most powerful man. The newly appointed Minister Energy, Industry and Mineral Resources of Saudi Arabia, or oil Minister spoke to the Houston Chronicle newspaper advised that the overproduction and supply glut are finally vanishing. He noted with the disappearance of the oversupply, approximately 530 million barrels, we would see a gradual increase in the price of oil, as the demands around the world increase. Contributing to the demand that will lessen the oversupply of oil, is Asia s developing country of Myanmar. Asia Development Bank reports, After decades of isolation, the Southeast Asian nation of Myanmar is roaring ahead with the fastest growing economy in Asia in Despite the devastating cyclone that struck in 2015, Myanmar s economy is expected to grow at a rate of 8.4 percent in 2016 and 8.3 percent in SAUDI OIL MINISTER KHALID AL-FALIH World Bank also reports, other Asian contributors include the Philippines and Vietnam. Growth in the rest of developing East Asia remains resilient and is expected to ease from 6.5% in 2015 to 6.3% in 2016 and 6.2% in Noteworthy of mention, other factors that contribute to the prediction of the oil production and price increases, include, ideal production environments, budget cuts in sectors of the oil industry in oil producing countries, and of all things, reduction in oil production. Long term, the reduction in production will result in an increase in demand and ultimately drive up the cost. The consensus in predictions, what goes down, must come up.

7 7 THE STRATEGIC WATER SOLUTIONS CORNER FRACKING BOOM DRIVES INCREASE IN WASTEWATER TREATMENT In line with the predictions for increases in oil prices, Navigant Research reports increases in wastewater treatment as well. Extracting oil requires water, tons of water, literally. One method of extracting oil is referred to as hydraulic fracturing or fracking. Hydraulic fracturing or fracking is the process of pumping fine sand suspended in a mixture of water and polymer at high pressures into the well to crack open rock formations to release oil and gas. When this mixture flows back, the sand remains in the formation and provides channels for the oil and gas to flow into the main well bore to reach the surface. It is estimated that fracking consumes up to 9.6 million gallons of water per well per day, up from 4.3 million gallons per day. On the front end, the hydraulic fracking wells withdraw large volumes of water in the fracking process; up to one million gallons of freshwater per wellhead. On the backend, up to 60% of the water injected into the wellhead during fracking, will discharge back out of the well as flow back wastewater. During the life of the fracking well, it will discharge an estimated 100,000 gallons of wastewater per day. Navigant s recently published report analyzes the wastewater treatment market between 2016 and The report predicts revenue from water treatment from both fracking and the declining method of deep well injection, is expected to reach $4 billion by the year 2025.

8 8 WATER SYNERGY THROUGH ABOVE GROUND REMEDIATION Our guiding philosophy in developing solutions for water treatment is Water Synergy: Eco-Friendly Solutions Cost Effective Operations New Revenue Streams Our business model aims to achieve all three value drivers for the oil & gas industry. There has never been a better time to seize the opportunity to provide superior water treatment solutions to the oil & gas industry and the timing is ideal to be regarded as an innovator in the industry. The industry as a whole is grasping for solutions to operate in a more cost- effective manner. The answer is the Strategic Water Solutions (SWS) filtration system. Each system is developed and sized for capacity, with state-of-the-art point of use controls. Equipment will include a series of different sized micron filters, speciallytreated ceramic membranes, centrifugal pumps, Flow meters, pressure sensors and electronically activated valves with a fail-safe free flow fluid path. The basic function of SWS ceramic membranes is to de-water the wastewater. SWS utilizes a proprietary coating that separates the organics from water, and allows each element to be re-used or recycled, adding tremendous value to what traditionally is disposed of as waste. ECO-FRIENDLY 99.9% removal of reservoir damaging bacteria from the water. No chemicals are used ("green" process). The technology prevents filter fouling, which reduces downtime, costs, and impact on the environment. Low energy cost (50-70 psi differential pressure). Ahead of the curve for environmental compliance and regulations. Key Benefits of CERAMIC MEMBRANE Technology OIL COMPANIES & INDUSTRY Consistent water quality output with a varying quality feed water. ph levels between 4 and 12 do not affect the filter properties. Minimal moving parts (feed pump, recirculation pump). Less than.08 ppm of TSS remaining. Scalability to handle multiple applications and volumes.