WorldWide Drilling Resource

Layne Christensen Signs Monumental Agreement with Texas Land Office Adapted from a News Release by PR Newswire Layne Christensen Company and the Texas General Land Office (GLO) have formed a long-term agreement which allows the company to drill for nonpotable water on GLO prop- erties across Reeves and Culberson counties. The water will be used for gas and oil drilling and completion activities in the heart of the Delaware Basin of Texas. Layne estimates there are about 58 gas and oil drilling rigs operating within three miles of the GLO acreage. These potential customers would most likely use the nonpotable water for hydraulic fracturing operations. Michael J. Caliel, president and CEO of Layne commented, "We are honored to partner with the Texas General Land Office and are proud to utilize Layne's 135 years of experience in water sourcing, drilling, and treatment to create significant revenue streams from the GLO's expansive land position and water resources in the Delaware Basin . . ." Under the five-year agreement, which includes several renewal options, the company will not only develop and construct water infrastructure for the venture, they will also own and operate the project to produce and sell the water to exploration and production companies. Layne's water infrastructure assets will most likely include water wells, storage ponds, pump stations, treatment facilities, and pipelines, as well as delivery points. Revenue from the sales will be shared between the company and the Texas Permanent School Fund, while the land and mineral assets will be managed by GLO. J. Michael Anderson, CFO and president of Layne Water Midstream said, "We intend to responsibly develop GLO water resources to create a long-term revenue stream for the State of Texas, while remaining committed to the preservation of the freshwater San Solomon Springs as GLO acreage that could impact the springs have been excluded from this lease. Further, we will develop and produce only nonpotable water from the GLO lands for energy use. We believe that Layne is expertly po- sitioned to develop, construct, and manage water infrastructure assets, and create long-term, sustainable income streams for both Layne and the GLO." Layne will immediately begin marketing water to producers in the region and serve as GLO's sales and marketing resource for the produced water. The company expects to begin generating revenue this year. 28 APRIL 2018 WorldWide Drilling Resource ®