THE WOODLANDS, Texas,
Aug. 2, 2021 /PRNewswire/
-- TETRA Technologies, Inc. ("TETRA" or the "Company")
(NYSE:TTI) reported that it has a completed a preliminary technical
assessment by an independent geological consulting firm to
assess lithium and bromine exploration targets of the Company's
approximately 31,100 net acres of brine leases in the Smackover
Formation in Southwest Arkansas. TETRA has rights to the
brine, including rights to the bromine and lithium contained in the
brine underlying this acreage, pursuant to certain brine leases and
brine deeds with various landowners. With respect to
approximately 27,500 acres of that total acreage, TETRA had
previously entered into an option agreement with Standard Lithium
whereby Standard Lithium Ltd. has an option to acquire lithium
rights. Standard Lithium must make annual cash payments to
TETRA to maintain the option to acquire the lithium rights.
Pursuant to the option agreement, after Standard Lithium initiates
commercial production, a royalty payment replaces the annual cash
payments. The scope of the exploration target assessment is for
bromine in all the approximately 31,100 net acres and lithium for
the acreage where TETRA holds 100% of the lithium rights not
subject to the option.
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For bromine, the technical assessment has identified a brine
exploration target estimated to contain between 2.54 and 8.58
million tons of elemental bromine and for lithium the exploration
target estimated to contain between 16,000 and 53,000 tons of
elemental lithium. Using an elemental to Lithium Carbonate
Equivalent ("LCE") conversion of 5.323, the lithium amounts to
between 85,000 and 286,000 tons of LCE. The current
market price of LCE is approximately $12,500 per ton(1), and the current
market price of bromine is approximately $3,174 per ton(1) in the U.S. and
$7,882 per ton(1) in
China. The market price of lithium
and bromine is volatile and may change materially in the
future.
Brady Murphy, TETRA President and
CEO commented, "TETRA has been focused on creating shareholder
value by capitalizing on our key mineral assets, brine mineral
extraction expertise, and deep chemistry competency to expand our
offerings into the low carbon energy markets. Bromine has
been identified as a key mineral resource in zinc-bromide energy
storage systems and our PureFlow™ high purity zinc bromide has been
qualified by several battery technology companies. In recent weeks
we received our first commercial order for PureFlow high purity
zinc bromide and the forecast for PureFlow demand will require us
to increase our future supply of bromine. This exploration
assessment is the first step for us to quantify the significant
potential resource position we have in our Arkansas brine leases. As we extract the
bromine from our brine leases to service the oil and gas markets as
well as the energy storage markets, we will have access to the
lithium in the acreage where TETRA holds 100% of the lithium rights
not subject to the Standard Lithium option. The lithium
battery market is already acknowledged to be a rapidly growing
market, affording TETRA the opportunity to participate in a
meaningful way. In the coming periods we will assess the next
steps towards developing these key minerals to augment our current
global infrastructure and chemistry know-how allowing us to expand
beyond the oil and gas market in which TETRA remains a significant
market participant."
We are not currently able to determine the economic viability of
the extraction of the lithium and bromine from the leased acreage.
The extraction of lithium and bromine from these brine leases may
require a significant amount of time and capital, which we are not
able to estimate at this time. While we continue to evaluate the
next steps regarding the potential development of our brine leases,
we have yet to conduct exploration work on the leases. The
exploration target's potential quantity and grade is conceptual in
nature, there has been insufficient exploration to estimate a
mineral resource, and it is uncertain if further exploration will
result in the estimation of a mineral resource. The exploration
targets expressed should not be misrepresented or misconstrued as
an estimate of a mineral resource or ore reserve.
(1) Prices as reported by Intratec
Solutions, LLC for bromine and by BMO Capital Markets research for
lithium.
Company Overview and Forward-Looking Statements
TETRA Technologies, Inc. is a geographically diversified oil and
gas services company, focused on completion fluids and associated
products and services, water management, frac flowback, and
production well testing. TETRA owns an 11% equity
interest in CSI Compressco LP (NASDAQ: CCLP) and approximately 1.1%
equity interest in Standard Lithium (NYSE: SLI).
Cautionary Statement Regarding Forward Looking
Statements
This news release includes certain
statements that are deemed to be forward-looking statements.
Generally, the use of words such as "may," "see," "expectation,"
"expect," "intend," "estimate," "projects," "anticipate,"
"believe," "assume," "could," "should," "plans," "targets" or
similar expressions that convey the uncertainty of future events,
activities, expectations or outcomes identify forward-looking
statements that the Company intends to be included within the safe
harbor protections provided by the federal securities laws. These
forward-looking statements include statements concerning the
exploration targets of lithium and bromine, the potential
extraction of lithium and bromine from the leased acreage and the
economic viability thereof, the timing and cost of such activities,
and statements regarding the Company's beliefs, expectations,
plans, goals, future events and performance, and other statements
that are not purely historical. These forward-looking statements
are based on certain assumptions and analyses made by the Company
in light of its experience and its perception of historical trends,
current conditions, expected future developments and other factors
it believes are appropriate in the circumstances. Such statements
are subject to a number of risks and uncertainties, many of which
are beyond the control of the Company. Investors are cautioned that
any such statements are not guarantees of future performances or
results and that actual results or developments may differ
materially from those projected in the forward-looking statements.
Some of the factors that could affect actual results are described
in the section titled "Risk Factors" contained in the Company's
Annual Reports on Form 10-K, as well as other risks identified from
time to time in its reports on Form 10-Q and Form 8-K filed with
the Securities and Exchange Commission.
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SOURCE TETRA Technologies, Inc.