Service & Supply | Water Treatment

Pioneer Taps Aqua-Pure for Permian Water Recycling Services

Share Print Bookmark    |    Thursday,June 27,2013

Aqua-Pure Ventures Inc. has reported that its wholly owned subsidiary, Fountain Quail Water Management, has received a contract from Pioneer Natural Resources Company to install two of Fountain Quail’s Nomad recycling water treatment units at Pioneer’s Upton and Reagan County, Texas operations in the Permian Basin.

The Nomad units are expected to be installed and begin operating during the third quarter of 2013.

The engagement is for an initial period of one year with an automatic renewal option, thereafter. The Company will receive a processing fee based on the quantity of water treated, with a minimum volume of 3,000 barrels per day guaranteed by Pioneer. Based on expected operations, Aqua-Pure anticipates initial annual gross revenues of over $5 million from the engagement.

Pioneer Natural Resources is one of the most active drillers in Texas’ Spraberry/Wolfcamp oil field in the Permian Basin, where it recently partnered with Chinese government owned Sinochem Petroleum Group in a $1.7 billion deal. Pioneer is also active in the Eagle Ford Shale play in South Texas and is one of the largest natural gas operators in the Rockies and Mid-Continent regions, with additional ongoing drilling programs in Texas’ liquids-rich Barnett Shale Combo play and in Alaska’s Oooguruk field.

Richard Broderick, head of business development for Aqua-Pure and chairman of the Company’s joint venture with Select Energy Services, commented: "This is our second engagement of this magnitude in the oil rich Permian Basin. Working with Pioneer, one of the largest North American independent E&P operators is a great opportunity for us to demonstrate the ability of our technology to address water needs for the unconventional oil industry. We look forward to growing our mutually beneficial, working relationship with such a preeminent oil and gas operator."