THE
WOODLANDS, Texas, Jan. 8, 2024
/PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the
"Company") (NYSE:TTI) today announced the completion of a Technical
Resources Study ("Report") for its 6,138 acre "Evergreen Brine
Unit" in Arkansas. TETRA
previously announced the Evergreen Brine Unit comprises brine
assets contributed by TETRA and Saltwerx, LLC, a wholly owned
subsidiary of ExxonMobil ("Saltwerx"), that was unanimously
approved in September 2023 by the
Arkansas Oil and Gas Commission ("AOGC") to form the first newly
established brine unit in Arkansas
in nearly 28 years. TETRA had previously announced the results of
its maiden inferred resources report on its 5,100 gross acres
proposed unit. The Report that is being announced today further
advances the resources and includes both "measured" and "indicated"
resources in addition to the "inferred" category, reflecting higher
confidence in the existence of the resources evaluated by the
Report.
The Report estimated that the Evergreen Brine Unit contains the
following:
- 1,413,000 tons of elemental bromine consisting of
approximately:
- 329,000 tons of Measured Resources
- 543,000 tons of Indicated Resources
- 541,000 tons of Inferred Resources
- 137,000 tons of lithium consisting of approximately:
- 32,000 tons of Measured Resources
- 53,000 tons of Indicated Resources
- 52,000 tons of Inferred Resources
Using a conversion factor of 5.323 to convert
elemental lithium to lithium carbonate equivalent (LCE) it is
estimated to contain in total 729,251 tons of LCE.
Mineral resources are estimates and therefore, inherently
imprecise, and dependent upon a number of assumptions, which are
further discussed in the Report. The resources estimates and brine
ownership percentages in the Report are consistent with and assume
completion of existing contractual obligations. The entire Report
is available on TETRA website at: Investor Relations -
Presentations (tetratec.com)
Following the drilling and completion of a second test well
within the Evergreen Brine Unit and utilizing information available
from Standard Lithium wells near the Evergreen Brine Unit, the
Report was completed and compiled by RESPEC Company LLC ("RESPEC")
with geological and reservoir technical support provided by
Lonquist Engineering ("Lonquist"). RESPEC is a leading consulting
firm to the mining & energy, water and natural resources
industries. Lonquist is a leading petroleum engineering,
underground storge engineering and reservoir engineering firm. The
second test well was completed in August
2023 and provided additional reservoir information,
including lithium and bromine fluid analysis, reservoir pressures
and thickness, porosity, and permeability, amongst other
information to meet the higher quality resource standards in this
Report. An extensive well test was also completed on the well which
provided brine deliverability information consistent with the
planned and modelled flow rates from future production wells.
Brady Murphy, President and Chief
Executive Officer said, "This is a very positive resource Report
for the future prospects for our Evergreen Brine Unit for the
production of lithium and bromine. The bromine resources were
in-line with our expectations, but the total lithium resources
greatly exceeded our expectations and is more than three times the
previous estimate of 234,000 tons of Inferred Resources from our
previous 5,100 acre study. Due to the richness of the lithium
concentration and the favorable Smackover reservoir properties, the estimated
22 tons per acre of total lithium resources for the Evergreen Unit
is believed to be the highest to date of any lithium brine resource
in the U.S. for which a SK-1300, NI-43-101 or JORC-compliant
technical report summary has been published.
"As reported previously, the SK-1300 Section 19 Economic
Analysis report for bromine was published in early in 2023. The
target for completing the lithium front end engineering and design
study (FEED) is early 2024. Should these resources be converted to
reserves with an estimated 80% ultimate recovery, the estimated
volumes of bromine and lithium from our Brine Unit represent over
50 years of potential production for lithium and bromine based on
the planned production rates underpinning these FEED studies.
"Once our lithium FEED study is completed, we intend to publish
an economic analysis for the brine unit, which will include the
lithium economic analysis and an updated bromine economic analysis
reflecting the cost synergies of a common plant site infrastructure
and operations. We are also pleased to report that we have entered
into a commitment, subject to completion of customary due
diligence, to purchase approximately 120-acre plant site located
within and on the southern side of the additional 35,000 gross
acres of mineral leases held by TETRA. The plant site has
been chosen to accommodate both the bromine and lithium plants to
be operated by TETRA and its expected joint venture partner and is
a mile north of the 6,138-acre brine unit."
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 measured, indicated and inferred mineral
resources of lithium and bromine, the potential extraction of
lithium and bromine from our Brine Unit, the economic viability
thereof, the demand for such resources, the timing and costs of
such activities, and the expected revenues and profits from such
activities; the accuracy of our resources report and initial
economic assessment regarding our lithium and bromine acreage;
projections or forecasts concerning the Company's business
activities, 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 measured, indicated and inferred
mineral resources, including bromine and lithium carbonate
equivalent concentrations, it is uncertain if they will ever be
economically developed. Investors are cautioned that mineral
resources do not have demonstrated economic value and further
exploration may not result in the estimation of a mineral reserve.
Further, there are a number of uncertainties related to processing
lithium, which is an inherently difficult process. Therefore,
you are cautioned not to assume that all or any part of our
resources can be economically or legally commercialized. 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. With respect to the Company's disclosures of the MOU
with Saltwerx, it is uncertain about the ability of the parties to
successfully negotiate one or more definitive agreements, the
future relationship between the parties, and the ability to
successfully and economically produce lithium and bromine from the
brine unit. Investors are cautioned that any such statements are
not guarantees of future performance 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. Investors should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks
only as of the date of the particular statement, and the Company
undertakes no obligation to update or revise any forward-looking
statements, except as may be required by law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/tetra-technologies-inc-announces-completion-of-technical-resources-study-for-the-arkansas-lithium-and-bromine-brine-unit-302028140.html
SOURCE TETRA Technologies, Inc.