Cadiz Announces Completion of Wellfield Expansion to 36,000 Acre-feet per Year

Rhea-AI Summary

Cadiz, Inc. (NASDAQ: CDZI/CDZIP) announced the completion of three new groundwater wells at Cadiz Ranch, expanding its capacity to 36,000 acre-feet per year (AFY). These wells will support the Northern Pipeline's full volume of 25,000 AFY while aiding current agricultural operations. The project, authorized since 2012, aims to conserve 50,000 AFY for Southern California communities and can store one million acre-feet of surplus water. Recently, the Salton Sea Authority approved a contract securing 5,000 AFY from Cadiz for restoration efforts, enhancing the wellfield's significance in addressing water scarcity amidst continued pressure on the Colorado River system. CEO Scott Slater emphasized the company's role in providing solutions despite ongoing drought conditions.

Positive

• Completed construction of three new groundwater wells, increasing capacity to 36,000 AFY.
• New wells enable delivery of 25,000 AFY to support agricultural operations.
• Secured a contract with Salton Sea Authority for 5,000 AFY to support restoration efforts.

Negative

• Continued pressure on the Colorado River system may affect long-term water availability.

Salton Sea Authority Also Approves Contract for 5,000 Acre-feet of Cadiz Water Supply

LOS ANGELES, April 6, 2023 /PRNewswire/ -- Today, Cadiz, Inc. (NASDAQ: CDZI/CDZIP) ("Cadiz", the "Company"), a clean water solutions company, announced that it completed construction of three new groundwater wells at the Cadiz Ranch increasing the wellfield to 12 production wells with an annual capacity of 36,000 acre-feet of water per year (AFY).  With the new wells online, the Cadiz Ranch wellfield will have sufficient capacity to deliver the full volume of the Company's Northern Pipeline, or 25,000 AFY, and also continue to support current agricultural operations at the Cadiz Ranch.

"Our mission is to deliver clean, reliable and affordable water to people," said Susan Kennedy, Executive Chair of Cadiz. "Our wellfield and infrastructure will provide both reliable new supply during extreme drought periods and underground storage during extreme wet periods."

The Cadiz wellfield at the Ranch captures groundwater that would otherwise be lost to evaporation from the base of a significant Mojave Desert watershed for agricultural irrigation. The Cadiz Ranch farming operation follows a sustainable groundwater management plan that has been administered by the County of San Bernardino since 1993. In 2012, the County also approved permits for the Cadiz Water Conservation and Storage Project that authorizes conservation of 50,000 acre-feet per year for beneficial supply uses in communities in Southern California. The project also offers one million acre-feet of storage capacity for imported surplus water in wet years.

In late March, the Salton Sea Authority Board of Directors voted to approve a four-party contract with Cadiz, the Coachella Valley Water District ("CVWD") and the Torres Martinez Desert Cahuilla Indians securing 5,000 acre-feet per year of water supply from Cadiz to support restoration of the Salton Sea and health, safety, and economic development on Tribal lands and in disadvantaged communities in eastern Coachella Valley, once the Project pipelines are operational. In February, CVWD also approved the contract.

"Despite recent rains, the Colorado River system remains under pressure with long-term projections of shortage that will alter reliable deliveries to all of Southern California" said Scott Slater, Cadiz CEO. "We are happy to be able to contribute to solutions for communities affected by these systemic changes."

About Cadiz, Inc.

Founded in 1983, Cadiz Inc. (NASDAQ: CDZI) is a California water solutions company dedicated to providing access to clean, reliable and affordable water for people through a variety of innovative water supply, storage, conveyance and treatment projects. For more information, please visit www.cadizinc.com.

FORWARD LOOKING STATEMENT: This release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company and the financing activities of the Company.  Although the Company believes that the expectations reflected in our forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Factors that could cause actual results or events to differ materially from those reflected in the Company's forward-looking statements include the Company's ability to maximize value for Cadiz land and water resources, the Company's ability to obtain new financing as needed, the receipt of additional permits for the water project and other factors and considerations detailed in the Company's Securities and Exchange Commission filings.

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SOURCE Cadiz, Inc.

FAQ

What is the capacity of the new groundwater wells completed by Cadiz?

The new groundwater wells increase Cadiz's capacity to 36,000 acre-feet per year (AFY).

How much water supply has Cadiz secured for the Salton Sea restoration?

Cadiz secured a contract for 5,000 acre-feet per year (AFY) for the Salton Sea restoration.

What is the role of Cadiz in addressing water supply issues in Southern California?

Cadiz aims to provide clean, reliable water supply solutions amidst pressures on the Colorado River system.

When did Cadiz announce the completion of its wellfield expansion?

Cadiz announced the completion of its wellfield expansion on April 6, 2023.