- TETRA Technologies (TTI, Financial) secures approval for a 815-acre expansion of the Evergreen Unit, enhancing bromine and lithium assets.
- Third-party test well reveals higher-than-average lithium concentrations in the new expansion area.
- TETRA to receive a 2.5% royalty on lithium revenues, retaining rights to key non-lithium minerals.
TETRA Technologies, Inc. (TTI) has obtained approval from the Arkansas Oil & Gas Commission to expand its Evergreen Unit from 6,138 gross acres to 6,953 gross acres, marking a significant 13% increase in its holdings within the Smackover Formation. A third-party test well within the expanded acreage has shown lithium concentrations exceeding the average found in the original unit, suggesting an enhanced production potential for the company.
The expansion not only focuses on bromine and lithium but also reveals encouraging levels of magnesium and manganese, which are considered critical minerals by the U.S. The integration of these minerals into TETRA's resource profile is projected to increase the strategic value of the project.
As part of its strategic operations, TETRA will earn a 2.5% royalty on gross revenues derived from lithium production by Standard Lithium, pursuant to their existing option agreement. This arrangement also allows TETRA to maintain its rights to other valuable minerals such as bromine, which will be produced from the same brine.
Saltwerx, LLC retains approximately a 35% interest in the brine interests of the Evergreen Unit. Meanwhile, TETRA remains the operator of this unit, which enhances their control over the mineral resources development.
Pending a final order from the AOGC, expected within 30 days, TETRA is advancing its reservoir engineering models to incorporate the expanded unit's new resource data, further underscoring its commitment to maximizing its resource base while methodically progressing towards full development.
