STW Resources Holding Corp., an oilfield reclamation company, agreed to build and operate a water recycling plant near Midland, Texas, that will provide up to 8,000 barrels a day of water for oil producers in the area.
Tiburon Research Holdings, which owns the Powell saltwater disposal site in Texas, will supply reclaimed water and help provide $3 million in financing for the plant, Midland-based STW said in a statement yesterday.
The plant will begin operating in the second quarter and generate as much as $6 million in annual revenue. Tiburon and STW plan to build additional water-recycling plants for oil producers in West Texas and in the Eagle Ford shale formation.
STW surged 48 percent to 6 cents a share in over-the-counter markets yesterday.