TETRA TECHNOLOGIES, INC. ANNOUNCES EXPANSION OF SMACKOVER FORMATION EVERGREEN UNIT AND UPDATE ON ADDITIONAL TEST WELL RESULTS

Rhea-AI Summary

TETRA Technologies (NYSE:TTI) has received approval from the Arkansas Oil & Gas Commission to expand its Evergreen Unit from 6,138 to 6,953 gross acres. A third-party test well within the expansion area showed higher-than-average lithium concentrations compared to the original unit.

Key developments include:

• Saltwerx, maintains approximately 35% interest in the brine interests
• TETRA completed an additional test well with promising results
• The expanded unit shows encouraging levels of magnesium and manganese, both U.S. critical minerals
• AOGC approved SWA Lithium's unit establishment under an option agreement with Standard Lithium and TETRA
• TETRA will receive a 2.5% royalty on gross revenues from lithium production while maintaining rights to bromine and other non-lithium minerals

The company plans to update its reservoir engineering model and publish a new resource study reflecting the expanded unit's mineral volumes.

Positive

• Expansion of Evergreen Unit by 815 gross acres
• Higher-than-average lithium concentrations found in expansion area
• Discovery of additional valuable minerals (magnesium and manganese)
• Secured 2.5% royalty agreement on lithium production while maintaining other mineral rights
• Standard Lithium's joint venture with Equinor to develop TETRA's option acreage

Negative

• Final AOGC order still pending for 30 days
• Mineral resources have not yet demonstrated economic value
• Uncertainties related to lithium processing and commercialization

Insights

Mining and Resource Development Expert

TETRA's 13% expansion of Evergreen Unit enhances bromine/lithium assets with promising test results, while discovering additional critical minerals in the same brine.

TETRA has secured approval from the Arkansas Oil & Gas Commission to expand its Evergreen Unit from 6,138 to 6,953 gross acres - a 13% increase in their Smackover Formation holdings. This expansion is strategically significant as third-party testing has revealed above-average lithium concentrations in this new acreage compared to the original unit.

The company's most recent test well delivered "very encouraging results," prompting an upcoming update to their reservoir engineering model. This will likely increase the official resource volumes for both bromine and lithium in the coming weeks. What's particularly noteworthy is that TETRA has discovered encouraging levels of magnesium and manganese in addition to the previously known bromine and lithium resources. Both these newly-identified minerals appear on the U.S. critical minerals list and are currently predominantly sourced from overseas.

This multi-mineral profile substantially enhances the project's potential value. The ability to extract multiple valuable minerals from the same brine creates significant operational synergies, as the same extraction infrastructure can potentially yield multiple revenue streams. TETRA wisely plans to focus first on developing their bromine assets while evaluating extraction technologies for these additional minerals.

While these findings are promising, it's important to differentiate between identified resources and economically viable reserves. The company acknowledges this distinction in their cautionary statement. TETRA is advancing engineering efforts and making key timeline investments, indicating they're methodically progressing toward development rather than rushing to production.

Energy Finance Analyst

TETRA strategically expands mineral rights with AOGC approvals, securing royalty income from Standard Lithium-Equinor JV while maintaining rights to additional minerals.

This announcement contains several positive developments for TETRA's resource asset portfolio. The 13% expansion of the Evergreen Unit strengthens TETRA's position as the operator of this increasingly valuable mineral resource. With Saltwerx, holding approximately 35% interest, TETRA maintains controlling interest in this expanded asset.

Beyond the expansion of their directly operated assets, TETRA has secured an important secondary revenue stream through the AOGC's approval of SWA Lithium's unit establishment. Under their option agreement, TETRA will receive a 2.5% royalty on gross revenues from any lithium that Standard Lithium produces and sells from TETRA's option acreage. Crucially, TETRA maintains rights to bromine and all other non-lithium minerals extracted from this brine.

The announcement of Standard Lithium's joint venture with Equinor to develop these specific resources adds significant credibility to the commercial potential. Equinor's involvement - as a major energy company with substantial development expertise - suggests strong confidence in the economic viability of these lithium assets.

TETRA's strategic positioning across multiple critical minerals (bromine, lithium, magnesium, and manganese) creates a diversified mineral portfolio from a single resource. With three of these minerals on the U.S. critical minerals list and predominantly sourced internationally, TETRA is developing domestic supply of strategically important materials.

While financial impacts remain future-oriented, these developments collectively strengthen TETRA's resource base, potential revenue streams, and strategic positioning in the critical minerals market.

THE WOODLANDS, Texas, April 24, 2025 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) announced that on April 22, 2025 the Arkansas Oil & Gas Commission ("AOGC") approved TETRA's application to expand the previously approved Evergreen Unit from 6,138 gross acres to 6,953 gross acres.  A test well reported by a third party within the expansion unit acreage shows lithium concentrations above the estimated average within the original 6,138 acres Evergreen Unit, and based on reservoir studies conducted by Lonquist Engineering, the new expansion unit is expected to enhance and prolong the production of bromine and other minerals within the Evergreen Unit from the Smackover Formation.  The reservoir studies will be provided to the Company's "qualified person" for further evaluation.

The AOGC approved TETRA's application to establish the expansion unit and integrate landowners.  The formal AOGC order is expected to be finalized within the next 30 days.  Saltwerx, LLC is a participant in the Evergreen Unit, owning approximately 35% interest of the brine interests.  TETRA is the operator of the Evergreen Unit.

TETRA recently completed the drilling and sampling operations of an additional test well in the Evergreen Unit with very encouraging results. With the Evergreen Unit expansion approved and the additional test well results, the reservoir engineering model will be updated to reflect new resource volumes for bromine and lithium in the coming weeks.  In addition to the rich volumes of bromine and lithium in the expanded Evergreen Unit, recent test well results have shown encouraging levels of magnesium and manganese, which are on the U.S. list of critical minerals and which are largely supplied from countries outside the U.S.  Given TETRA's progress with mineral extraction from produced water, the Company is evaluating extraction technologies and development of these additional minerals, including engineering studies.  It is encouraging that all these minerals, three of which are on the U.S. critical minerals list, may be produced from the same brine that will be developed first for TETRA's bromine project requirements. 

TETRA is expected to publish an updated resource study prepared by the Company's qualified person identifying the incremental volumes of bromine and lithium in the expanded Evergreen Unit.  TETRA remains focused on developing the bromine assets and continues to advance engineering efforts as well as key timeline  investments to advance the project.

Also on April 22, 2025 the AOGC approved SWA Lithium's application to establish a unit for acreage under an option agreement between Standard Lithium, SWA Lithium and TETRA. The option agreement compensates TETRA with a 2.5% royalty on gross revenues from the lithium that Standard Lithium produces and sells from the TETRA option acreage.  TETRA maintains rights to the bromine and all other non-lithium minerals extracted from the brine produced by Standard Lithium in their approved unit.  Standard Lithium recently announced a joint venture agreement with Equinor to develop the TETRA option acreage to produce brine for lithium extraction.

Company Overview

TETRA Technologies, Inc. is an energy services and solutions company focused on developing environmentally conscious services and solutions that help make people's lives better. With operations on six continents, the Company's portfolio consists of Energy Services, Industrial Chemicals, and Lithium Ventures. In addition to providing products and services to the oil and gas industry and calcium chloride for diverse applications, TETRA is expanding into the low-carbon energy market with chemistry expertise, key mineral acreage, and global infrastructure, helping to meet the demand for sustainable energy in the twenty-first century. Visit the Company's website at www.onetetra.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 TETRA intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements regarding TETRA's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. These forward-looking statements are based on certain assumptions and analyses made by TETRA 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 TETRA. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to develop a bromine processing facility; equipment supply, equipment defects and/or our ability to timely obtain equipment components; competition from existing or new competitors; opportunity risks, such as mineral extraction, demand therefor, or realizing industrial and other benefits expected from bromine processing; risks associated with changes in federal, state, or local laws or trade policies; and risks related to adverse changes in general economic conditions. With respect to our disclosures of mineral assets, including bromine and lithium concentrations, it is unclear whether 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, investors are cautioned not to assume that all or any part of our resources can be economically or legally commercialized, or that it will ever be upgraded to a higher category.  Moreover, TETRA operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, TETRA assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in TETRA's most recent filings with the Securities and Exchange Commission, including TETRA's most recent Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K.

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SOURCE TETRA Technologies, Inc.

FAQ

What is the new size of TETRA's (TTI) Evergreen Unit after the April 2025 expansion?

The Evergreen Unit has been expanded from 6,138 gross acres to 6,953 gross acres, following approval from the Arkansas Oil & Gas Commission on April 22, 2025.

What minerals has TETRA (TTI) discovered in its expanded Evergreen Unit?

The expanded unit contains bromine, lithium, magnesium, and manganese, with three of these being on the U.S. critical minerals list.

What royalty will TETRA (TTI) receive from Standard Lithium's production?

TETRA will receive a 2.5% royalty on gross revenues from lithium production, while maintaining rights to bromine and other non-lithium minerals.

What is Saltwerx 's ownership percentage in TETRA's (TTI) Evergreen Unit?

Saltwerx owns approximately 35% interest of the brine interests in the Evergreen Unit.