THE
WOODLANDS, Texas, Dec. 19,
2022 /PRNewswire/ -- TETRA Technologies, Inc.
("TETRA" or the "Company") (NYSE:TTI) today announced updates on
some of the Company's strategic initiatives.
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TETRA announced that Hargrove has completed the Front-End
Engineering Design ("FEED") scope of work for the development and
construction of a bromine production facility from TETRA's brine
leases in Arkansas. Hargrove's FEED study provided an
estimated total required capital investment, within a relevant
range, over an estimated 24 month-period to construct the facility;
optimized process flow, and identified long lead items. In
addition, also provided was an evaluation of the required capital
and engineering design to maximize the project's long-term
profitability and the actions necessary to reduce execution risk to
support the advancement of the project towards becoming a robust
bromine-producing plant. As announced previously, TETRA's
brine leases are estimated to contain inferred resources of 5.25
million tons of bromine and 234,000 tons lithium carbonate
equivalent (LCE). Hargrove's FEED study is part of TETRA's
ongoing evaluation and initial assessment of its Arkansas brine leases, which is part of an
effort by TETRA to develop bromine production to meet an existing
and growing completion fluids market as well as TETRA's high purity
zinc bromide electrolyte (TETRA PureFlow®) to support
the projected high growth market of energy storage. During
the fourth quarter, TETRA received an order for TETRA
PureFlow® from a second zinc-based energy storage
battery provider.
In parallel to the Hargrove FEED scope of work, Lonquist &
Company LLC ("Lonquist") are in the process of completing a
detailed geological, reservoir and production simulation study to
ensure the optimal locations for the production and injection wells
to ensure the best long-term producibility and recovery of the
bromine and lithium from TETRA's approximately 5,000 acres where
TETRA holds the bromine and lithium mineral rights not subject to
the option agreement with Standard Lithium. The reservoir
modeling and well placements design are also important to support
the production volumes that the Company will include in a
forthcoming economic analysis. The final Lonquist report is
currently targeted for completion in January
2023, after which the Company will finalize and make
available an initial economic assessment.
During the fourth quarter, TETRA successfully completed its
first UK based CS Neptune® project. With this
project, TETRA has now completed CS Neptune jobs with 100% success
rates in the Gulf of Mexico,
Norway and the UK. The
European projects are smaller in size to those previously completed
in the Gulf of Mexico but
demonstrate the successful application of this zinc-free
environmentally-friendly completion fluid. TETRA also
completed an acquisition of a completion fluids business in the
U.K. and is in the final stages of completing an additional
acquisition to expand its deepwater position in the Gulf of
Mexico. Although smaller in size, both acquisitions will
immediately grow TETRA's market position and growth capacity in
both key offshore markets.
Also in the fourth quarter, TETRA has obtained exceptional
preliminary results from its first desalination of produced water
for beneficial re-use pilot project in Texas for a major oil & gas producer.
TETRA has partnered with this major U.S. shale producer for
its first pilot using TETRA's proprietary pre-treatment process
combined with osmotically assisted reverse osmosis technology where
TETRA has an exclusive agreement for oil and gas applications. The
results have yielded as high as 92% de-salinated water from the
produced water with total dissolved solids ("TDS") levels ranging
from 200 ppm (parts per million) to 40 ppm. For comparison,
the typical average municipal tap water contains between 300 ppm to
400 ppm. The trial was recently completed and the equipment
field and operational learnings will be used for a final commercial
plant design.
TETRA"S CEO Brady Murphy stated,
"I am pleased with the progress we have made this year by
strengthening our position in key markets for an expected
multi-year offshore upcycle while making significant R&D and
engineering progress for lithium extraction and bromine production
from our Arkansas Smackover brine leases. With the recent and
increasing seismicity events in West
Texas and New Mexico, there
is increasing urgency for desalinating oil and gas produced water
for the purpose of beneficial reuse. We are excited with our
advances in each of these areas and the business opportunities they
present for the company."
Company Overview
TETRA Technologies, Inc. is an energy services and solutions
company operating on six continents with a focus on bromine-based
completion fluids, calcium chloride, water management solutions,
frac flowback, and production well testing services. Calcium
chloride is used in the oil and gas, industrial, agricultural,
road, food, and beverage markets. TETRA is evolving its
business model by expanding into the low carbon energy markets with
its chemistry expertise, key mineral acreage, and global
infrastructure. Low carbon energy initiatives include
commercialization of TETRA PureFlow®, an ultra-pure zinc
bromide clear brine fluid for stationary batteries and energy
storage; advancing an innovative carbon capture utilization and
storage technology with CarbonFree to capture CO2 and
mineralize emissions to make commercial, carbon-negative chemicals;
and development of TETRA's lithium and bromine mineral acreage to
meet the growing demand for oil and gas products and energy
storage. Visit the Company's website at www.tetratec.com for
more information.
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 economic and operating conditions that are
outside of our control, including statements concerning recovery of
the oil and gas industry; customer delays for international
completion fluids related to global shipping and logistics issues;
potential revenue associated with prospective energy storage
projects or our pending carbon capture partnership; inferred
mineral resources of lithium and bromine, the potential extraction
of lithium and bromine from the leased acreage, the economic
viability thereof, the demand for such resources, and the timing
and costs of such activities; the ability to obtain an initial
economic assessment regarding our lithium and bromine acreage; the
construction of bromine production facility; projections
concerning the Company's business activities, financial guidance,
profitability, estimated earnings, earnings per share, and
statements regarding the Company's beliefs, expectations, plans,
goals, future events and performance, and other statements that are
not purely historical. With respect to the Company's
disclosures of inferred mineral resources, including bromine and
lithium carbonate equivalent concentrations, it is uncertain if
further exploration will ever result in the estimation of a higher
category of mineral resource or a mineral reserve. Inferred
mineral resources are considered to have the lowest level of
geological confidence of all mineral resources. Investors are
cautioned that mineral resources do not have demonstrated economic
value. Inferred mineral resources have a high degree of
uncertainty as to their existence and to whether they can be
economically or legally commercialized. A significant amount of
exploration must be completed in order to determine whether an
inferred mineral resource may be upgraded to a higher
category. Therefore, you are cautioned not to assume that all
or any part of an inferred mineral resource exists, that it can be
economically or legally commercialized, or that it will ever be
upgraded to a higher category. 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.