STW Resources Holding Corp. announce its planned acquisition of a locally owned Midland based company, Black Pearl Energy, LLC (Black Pearl) that installs liners and has introduced floating evaporation covers for fresh water frac pits to the oil industry. Black Pearl has been in business for 4 years operating primarily in the Permian Basin where it has established a broad customer base and reputation for quality. Black Pearl's synergies with STW are throughout most divisions and will immediately be accretive to the company's revenues. STW Resources plans to operate Black Pearl as a wholly owned subsidiary.

In a non-binding agreement signed Thursday, STW will pay $1.95 million for 100% of Black Pearl. The parties are working on a definitive agreement and expect to close the transaction by the end of September 2014. STW will pay the purchase price as follows: 21% cash, 37% earn-out over three years and 42% in stock (priced at $0.30 per share). The transaction is subject to customary closing conditions, including availability of audited financials for Black Pearl, and therefore it is possible that the transaction may not occur by the end of September or at all.

Tags: Black Pearl Energy, LLC, STW Resources Holding Corp.