Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on November 24, 2024 at 2:57

Pantera Minerals calls halt to prospective Lafayette County lithium well

magnoliareporter.com  11/23/2024

Pantera Minerals has shut down its effort to re-enter a well at its Lafayette County lithium brine project.

The Perth, Australia company said in a statement to shareholders that it encountered tubing and packer stuck in hole at 9,750 feet left by a previous operator -- not the current operator -- that had not been reported in previous documents lodged with the state as would normally be required.

After three days of attempting to remove the stuck pipe and packer from the well via a fishing operation the decision was made to shut down operations, and demobilize the rig and all service providers in order to preserve company cash.

While extremely frustrating for the company after12 months of planning, the result in no way diminishes the value of the Pantera Lithium Brine Project and leads to the company bringing forward its plan to drill a fresh and standalone well, the company said.

The process of planning and operating the re-entry has introduced the company to a reliable and competent group of service providers including drilling, operating, safety and environmental groups that will all be utilized on upcoming wells.

The re-entry procedure was selected over a fresh well due to the location of the target re-entry well and potential ability to quickly and economically obtain brine samples for analysis. While the company understood there could be issues with a well that was initially drilled and completed in the early 1980s, it was given confidence as reliable records of well completion data and operations are normally submitted to the state.

The company has subsequently discovered this was not the case and a previous owner and operator of the well failed to detail the stuck pipe and packer issue.

Pantera Minerals is well advanced on planning for a standalone resource definition well that is expected to spud in 2025. Discussions with surface owners have begun and the company expects to be able to update shareholders imminently.

The company has continued to acquire completed mineral ownership data (abstract) via its exclusive abstract agreement with the Lafayette Land & Title Company. The company intends to build on its acreage position which currently sits at greater than 26,000 net acres and 34,900 gross surface acres. Aggressive leasing has continued by other parties surrounding the company’s exclusive abstract area to the north and west.

• ▶ Reply

Permalink Reply by Rock Man on November 24, 2024 at 7:55

Disappointing but not totally unexpected.

I wonder which well they were trying to re-enter.

Rule of thumb for old timers is that any re-entry operation has a high-risk chance of success.

Thinking that they spent around $250,000 on this failed operation.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 24, 2024 at 8:00

I'm thinking Pantera is under funded and was trying to get samples on the cheap.  The company likely acquired rights to that well before engaging the services of that "reliable and competent group of service providers". 

Seems Pantera engages in some wishful thinking.  I wish them good luck on their upcoming "fresh well".

"The re-entry procedure was selected over a fresh well due to the location of the target re-entry well and potential ability to quickly and economically obtain brine samples for analysis. While the company understood there could be issues with a well that was initially drilled and completed in the early 1980s, it was given confidence as reliable records of well completion data and operations are normally submitted to the state."

• ▶ Reply

Permalink Reply by Rock Man on November 24, 2024 at 15:31

Only spending three days trying to get the "stuck tubing and packer" out of the hole seems like a short time to persist with this process.

• And if this downhole info was not included in the state paperwork filed for this well, how can Pantera know what is really down hole?

Something doesn't sound right here based on what Pantera has reported.

But I do totally agree with your comment about "under funding".

• The most critical part of any Lithium program is to get good water samples that demonstrate economically viable lithium concentrations.

And the only way to do this is physically test the section (Smackover), get quality reservoir water samples and then hope for good analytical results.

• A lot riding on this operation since poor lithium concentration results essentially condemn their area of interest.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 26, 2024 at 4:32

Oxy Enters Arkansas Lithium Rush

Energy Intelligence Group  Published: Mon, Nov 25, 2024

Author Noah Brenner, London Editor Chris Raine

Occidental Petroleum has become the latest oil and gas player to stake out acreage in the emerging lithium play in the US state of Arkansas, joining rivals such as Exxon Mobil and Equinor in the pursuit of extracting the valuable battery metal from brines.

“All we’ve done is get some leases right now,” Oxy CEO Vicki Hollub told Energy Intelligence on the sidelines of the Energy Intelligence Forum in London.

The leases mark an expansion of Oxy’s current lithium efforts, which have been focused around the Salton Sea area of California, where the company's TerraLithium subsidiary is partnered with Berkshire Hathaway Energy.

The pair are looking to extract lithium from brines produced by Berkshire’s geothermal energy production. Oxy and Berkshire are due to begin construction of the first direct lithium extraction (DLE) pilot plant this year. If that is successful, the partners have discussed expanding operations in the region.

Oxy has a 100% interest in its leases in Arkansas, Hollub said, although Berkshire Energy has an option under its existing collaboration with Oxy to partner on future developments in the state if the pair were to choose to move ahead.

Synergies

Oil and gas companies say they see significant overlap between the skills needed for DLE from brines and their own operations, citing expertise in drilling and handling large volumes of fluids.

“We're probably one of the largest handlers of brine in the United States,” Hollub told the Forum. “So acquiring a technology that would get lithium out of that brine was what we felt was within our wheelhouse.”

In total, companies have invested about $200 million in DLE assets, according to figures tracked by Energy Intelligence Research & Advisory’s Low-Carbon Investment Tracker.

The majority of that investment has targeted the Smackover formation in Arkansas and eastern Texas, where brines have higher-than-average lithium concentrations, which promises more economic extraction.

Peer Pressure

Exxon has said it hopes to begin commercial lithium production in Arkansas as early as 2027, while Equinor has spent $160 million on lithium leases in Arkansas and Texas and is undertaking early engineering work for an extraction plant.

Lisa Rebora, the head of the Norwegian giant’s lithium business, told a podcast in August that DLE “has all the hallmarks of becoming an industrial-scale business for Equinor in the future.”

Hollub said DLE operations in the US could “provide a much cleaner lithium for the manufacture of batteries” in the US to offset imports from other countries.

A host of international oil and gas firms, including giants like Saudi Aramco, Abu Dhabi National Oil Co. and Gazpromneft, have expressed interest in trying their hand at DLE alongside those targeting extraction in the US. However, none have advanced beyond exploratory stages yet.

Hollub said there could be an opportunity for Oxy to use its expertise and license the extraction technology to others internationally.

“We’re getting some calls about opportunities,” she said. “Companies in countries are calling us that have produced fluids that have higher concentrations of lithium.”

 

• ▶ Reply

Permalink Reply by Rock Man on November 26, 2024 at 8:28

PS to my own comment from Nov 25th

I am wondering if Pantera uncovered paperwork / info after they started this re-entry operation that stated what was really left in the hole?

• That is the only way that they could truly know what was left in the wellbore

And if this is the case, one has to wonder about their efficiencies and approaches as to how they do business

• Sounds like an old well file popped up that contained some non-public info

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on November 26, 2024 at 10:02

I'm wondering where Occidental Petroleum (OXY) acquired it's SW AR brine leasehold.  Exxon is partnered with SaltWorx and Standard Lithium with Equinor.  Is it possible that OXY got their lease position from Pantera?  If the article had mentioned E TX along with SW AR, I would have guessed East Texas Natural Resources (ETNR).

Permalink Reply by Skip Peel - Mineral Consultant on December 19, 2024 at 5:36

A Bigger Boom: Lithium Industry Poised to Inject Billions of Dollars into Arkansas Economy

by Sarah DeClerk December 19, 2024  armoneyandpolitics.com

It seemed to happen overnight. A few years ago, sleepy south Arkansas woke up to a growing buzz — with a lithium boom on the horizon, the region is set to strike it rich once again.

According to a study released by the U.S. Geological Survey and Arkansas Department of Energy and Environment in October, there is enough lithium beneath south Arkansas to meet the projected 2030 world demand for lithium in car batteries nine times over, somewhere between 5 million and 19 million tons.

“It will be bigger than the oil boom was in the ’20s here,” said Bill Luther, president and CEO of the El Dorado-Union County Chamber of Commerce.

When asked how much the lithium industry would impact the local economy, Erik Pollock, director of the University of Arkansas Stable Isotope Lab and Trace Element and Radiogenic Isotope Lab in Fayetteville simply said, “A lot.”

“Let me put it this way — I did a back-of-the-envelope calculation of the amount of lithium that was in the land under lease eight or 10 months ago and what, at the time, was a pretty crummy price for lithium, and I came up with, like, $150 billion worth of lithium,” he said. “We could be looking at something that’s going to put $2 or $3 billion a year into the Arkansas economy.”

WHY NOW?

Obviously, the substance did not simply show up one day, so why the sudden interest in Arkansas lithium?

“We’ve actually been drilling oil wells in Smackover for about 100 years, so we knew the Smackover [Formation] was there,” Pollock said. “Some of the earlier lithium data was back into the ’80s, I believe. It didn’t become a big deal because nobody needed lithium in the ’80s, and we didn’t have the technology to extract it, so we needed a need, and we needed technology.”

Technology converged with need about five years ago. From a technological standpoint, researchers developed direct lithium extraction, a method capable of extracting lithium from the brine reservoirs in south Arkansas. As far as need, not only are lithium batteries for electronic vehicles increasing in demand, but the U.S. has become interested in finding sources of lithium close to home.

“There’s been an increasing shift toward finding domestic or, at least, more friendly productions of both lithium and other critical minerals, and so we’ve begun to look at our own resources much more closely,” Pollock said.

Today, almost all lithium is produced in South America, although there is some production in Australia, and refined in China for battery production there, Pollock said.

“They have sort of a chokehold on the market, and so they can manipulate their economy to our disadvantage,” he added. “This crops up in the news every once in a while. You’ll see a little bit of saber rattling here and there, but the threat became real enough that the Department of Defense and the administration said, ‘We’ve got to see if we can find better sources so we don’t have to work with these people.’”

In 2021, Kathleen Hicks, deputy secretary of defense, mentioned lithium-ion batteries as part of a speech about climate change and national security at Wayne State University in Michigan. Since then, the Department of Defense has taken additional steps to shore up the domestic lithium supply chain.

“Battery technology and lithium-ion batteries, specifically, are the lifeblood of electrification and the future auto industry, but batteries are also essential to thousands of military systems, from hand-held radios to unmanned submersibles and to future capabilities like lasers, directed energy weapons and hybrid electric tactical vehicles,” she said in her speech. “A healthy battery supply chain is essential to the military.  When it comes to batteries, America needs to lead the world.”

In addition to electric vehicles and defense manufacturing, lithium is a component of batteries that store renewable energy produced by wind and solar power, and lithium-ion batteries can be found in an increasing number of household goods, Pollock said.

“It creeps around sort of everywhere. It’s in my phone. It’s in my cordless drill,” he added. “We are going to see the electrification of everything.”

In February, the Arkansas Lithium Innovation Summit in Little Rock brought together the myriad of stakeholders interested in the lithium boom. Pollock, who participated as a panelist, said the summit helped tell the story of Arkansas to visitors from as far away as Europe and Canada.

“I think that that was a wonderful way to sort of plant an open sign for Arkansas,” he said. “I think that the panelists and the speakers did a really good job of reinforcing what we know to be a good place to do business and to have a life.”

PREPARING FOR THE UNPRECEDENTED

Interest from Standard Lithium, Equinor, ExxonMobil and others has set off a flurry of activity as Arkansas works to accommodate its burgeoning lithium industry.

“We really haven’t seen this in this country,” Pollock said. “Probably the closest would be some of the work that’s gone on in the Salton Sea in California, which also has some brines. Technologically, they haven’t been quite as successful as the early results out of Arkansas have been for that, and so the boom hasn’t taken shape quite as dramatically as it looks like it’s poised to do in Arkansas.”

Alberta and the Oregon-Nevada border also have lithium deposits, but the Alberta deposits are of lower quality than those in Arkansas, Pollock said, and the Oregon-Nevada deposits pose mining challenges because they lack the water resources necessary for production.

The lithium industry in south Arkansas should not pose any environmental concerns, Pollock said, adding that the DLE process extracts the brine from the ground, removes the lithium from the brine and returns the brine to the reservoir with minimal surface disruption. He said bromine extraction, which has been done in the region for decades, uses a similar process.

“That’s similar for the bromine, which is also in this play, and we’ve been doing that for about 50 years fairly safely, so the environmental impacts for the magnitude of the resource we have are really going to be quite small,” he said.

The existing south Arkansas bromine production by companies such as Lanxess makes the area attractive to lithium producers, said Florence Meadors, Lithium Regional Innovation Cluster program manager.

“There’s already a framework in place, so that’s why a lot of these players are wanting to have a presence in Arkansas,” she said. “We already have frameworks set, and there’s a social buy-in, and that gives us a first-mover advantage.”

The U.S. Small Business Administration chose Fayetteville-based Startup Junkie to lead the Lithium Regional Innovation Cluster in October.

“I think the hope there is to really put Arkansas on the map within the lithium industry,” said Matthew Ward, senior executive consultant at Startup Junkie. “We have a really great asset in south Arkansas. We have a lot of great stakeholders being involved. Startup Junkie gets to have a seat at the table, be able to make an impact, whether it’s through jobs, whether it’s through helping bring more capital to the area or making the right connections for clients.”

THE BOOM BEGINS

A significant amount of land in south Arkansas is currently under lease and awaiting lithium production, Pollock said. Standard Lithium currently operates a demonstration plant in the area, and further commercial projects from Standard and others are set to follow.

However, lithium production is currently on hold until the Arkansas Oil and Gas Commission approves the royalty rate at which landholders will be reimbursed.

“That is a difficult conversation that’s being had,” Pollock said. “We really need to make sure that we hit a sweet spot with that royalty figure in order to engage industry and not economically price them out while also honoring the land owners’ materials.”

Luther said the lithium companies may end up sharing their profit reports with the commission in order for a fair rate to be determined.

“The high end is 12.5 percent, what the royalty owners are looking for. The low end was 1.82 percent, which the commission declined, so I don’t know what the happy medium is,” he said. “Until the corporations open up their books somehow so the commission can determine what the profit actually is, that’s going to be the holdup.”

The need to prove profitability is one reason the lithium boom has not taken off as sharply as its 1920s predecessor, he added.

“Almost overnight, once the Busey [oil] well came in, the population of El Dorado doubled and everybody, tons of folks, came from Little Rock almost immediately,” he said. “It’s going to be a little slower in developing than the oil boom in the ’20s. One reason — the major corporations, they don’t jump in and invest until they’re pretty confident they’re going to get a return on what they’re investing in.”

The lithium boom is also set to be more long-lived than the oil boom, Pollock added.

“This is going to be a slow burn,” Pollock said. “We can’t take this lithium out like a gusher of oil. Some of these producers are looking at their reserves as 30- and 50-year production windows.”

MORE FOR THE MONEY

Pollock said that although he is not concerned about the environmental implications of the lithium industry, he worries that the state may sell itself short by simply producing lithium for export, rather than becoming involved in the downstream supply chain.

“If we keep thinking as a state, we can turn this into a very positive piece of economic and community growth and workforce development,” Pollock said. “The environmental aspects don’t worry me considering the scale of these operations. What I would be sort of concerned about would be if Arkansas sort of becomes just a lithium producer, and then we end up sort of short-selling ourselves by selling the lithium to Texas or Louisiana as opposed to using it to grow more of the downstream economy in the lithium industry.”

The downstream end of the lithium-ion battery supply chain is overbuilt, and there are an abundance of battery factories in Kansas, Alabama and Texas that do not have a domestic lithium source, Pollock said. While he added that he does not expect Arkansas to develop a large battery manufacturing sector, he said each step of manufacturing battery components and putting together cells for batteries represents an opportunity for Arkansas industry.

Startup Junkie is among the organizations working to piece together the many entrepreneurial opportunities wrought by the lithium boom.

“We don’t want it to be just an export/import business,” Ward said. “We want it to be a value-add chain where it’s having advanced manufacturing, being able to help out, once the lithium’s out of the ground, with the processing, anode, cathode, attracting some of those other players into the region, and then, also, you know, if any of the industries have certain gaps, being able to help fill those with startups from around the nation to help make processes more efficient and really drive impact here.”

Ward said Startup Junkie will work to bring together various stakeholders, including lithium producers, institutes of higher education and chambers of commerce, to help drive development in south Arkansas.

“The mandate for the SBA is to create jobs and bring innovation, and how we’ll do that is through various services, such as the cost of mentoring and coaching, events that are educational, networking or related to showcasing, access to capital, access to subject matter experts,” he said. “That’s how we see ourselves in the area, and this will involve different stakeholders in the area, such as the enterprises.”

THE WORLD OF TOMORROW

No industry exists in a vacuum, and Luther said he expects the lithium industry to support various other sectors, including housing, health care and workforce development. One of the most positive things he has noticed are collaborations at local colleges and universities to apply for grants for programs that support lithium production.

South Arkansas College in El Dorado has already obtained a grant for a program that allows high school students to earn concurrent credit in a chemical technician program, he said.

“High school students can take courses concurrently beginning in their junior year, and then they take the courses out at South Arkansas East Campus,” he said. “After they graduate from high school, they attend another six months, and they have a certificate or an associate degree, and those young folks, six months out of high school, can be working for $85,000 plus.”

In addition to providing high-paying jobs, he said he expects the lithium boom to foster community development in south Arkansas by bringing additional housing, retail and amenities to the region.

“All of these major players have expressed interest in investing in the communities, and I foresee bike trails and things going on like in northwest Arkansas,” he said. “A lot of folks are going to be locating here from elsewhere, and they kind of expect that sort of amenity, so I think it will be beneficial for all.”

Meadors, who is based in Magnolia and previously worked as a business consultant at the Small Business and Technology Development Center at South Arkansas University, said the local stakeholders have already expressed interest in investing in the area to help retain students as workers who could help support the lithium industry.

“As far as the community development goes, I think this is just going to give all these areas a really good opportunity to grow and just enhance what’s already here,” she said. “Having worked directly in community development for several years, I mean, there’s ups and downs when the income levels go up, but I think it will make this a place where adding a lot more features is going to be attractive because it will help with that quality of life, and it will help to keep people here and to keep people coming.”

If northeast Arkansas has steel and northwest Arkansas has Walmart, lithium could be the catalyst that enhances both the economy and culture of south Arkansas, if not the entire state.

“Walmart got started, they started to attract a lot of those brands, and today, in northwest Arkansas, there’s over 1,400 vendors supporting Walmart,” Ward said. “It’s not an apples-to-apples comparison, but we can see [lithium] being a huge magnet to the state, which could indirectly have an increase with tax payments, the infrastructure … the uptick in mainstream businesses and some other things like that.”

 

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on January 15, 2025 at 3:39

Excerpt, to see the full article with map and images use this link:

https://www.stocktitan.net/news/SLI/swa-lithium-drills-new-smackove...

SWA Lithium Drills New Smackover Well and Conducts Extensive Reservoir Testing Program at South West Arkansas Lithium Project

SWA Lithium, a joint venture between Standard Lithium and Equinor ASA, has begun drilling a new exploration well (Lester-1) at their South West Arkansas Lithium Project. The well has reached 8,000 feet depth, with a target of 9,600 feet. The project includes core sampling from the Smackover Formation and extensive reservoir testing.

The company is also conducting field programs at four existing wells in the proposed first area of operation, involving well re-entry, hydraulic testing, and brine sampling. Initial results indicate better reservoir properties than previously documented in the preliminary feasibility study, with higher lithium concentrations in brine samples.

The data collected will inform the upcoming Front End Engineering Design (FEED) and Definitive Feasibility Studies (DFS), scheduled for completion by mid-2025. Large volumes of brine have been collected from the International Paper Company well for field-based pilot testing.

The drilling of the Lester-1 well represents a crucial step in de-risking the South West Arkansas Lithium Project. The well's strategic placement fills a critical data gap in the proposed operational area, while the depth target of 9,600 feet aligns with optimal Smackover Formation zones. The core sampling and permeability testing program is particularly vital for validating reservoir characteristics.

Initial findings indicating superior reservoir properties and higher lithium concentrations than previously documented suggest enhanced project economics. The comprehensive testing approach, including selective perforation and large-scale brine sampling, will provide essential data for accurate production modeling and resource estimation. This methodical approach to reservoir characterization is fundamental for the upcoming FEED and DFS studies.

This development phase marks a significant milestone in project de-risking. The joint venture between Standard Lithium and Equinor brings together technical expertise and financial capability, enhancing project credibility. The accelerated timeline targeting mid-2025 for FEED and DFS completion suggests strong execution focus.

The improved reservoir properties and higher lithium concentrations could materially impact project economics. This ongoing field program, combined with the new well data, will likely lead to refined resource estimates and potentially improved project metrics. The establishment of a central processing facility on owned land reduces future development risks and streamlines the path to commercialization.

The extensive testing program demonstrates a robust technical approach to resource validation. The combination of new drilling and re-entry testing of existing wells provides comprehensive data coverage critical for commercial development. The collection of large brine volumes for pilot testing indicates progression toward process optimization.

The systematic approach to data collection, including third-party analysis and QA/QC protocols, aligns with best practices in resource development. The focus on multiple well testing and extensive reservoir characterization suggests a thorough understanding of subsurface conditions will be achieved, essential for accurate production forecasting and project valuation.

Additional Testing Program in 2023 Wells is Designed to Improve Understanding of Formation and Revise the Brine Chemistry for the First Phase of Production

LOUISVILLE, Ark., Jan. 15, 2025 (GLOBE NEWSWIRE) -- SWA Lithium, the Joint Venture between Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE American: SLI) and Equinor ASA (“Equinor”) which is developing the South West Arkansas Project (“SWA” or the “Project”), is pleased to announce that it has successfully commenced drilling a new well into the Smackover Formation at the Project. The well is currently at a depth of approximately 8,000’ below surface (2,438 m), and has a targeted total depth of 9,600’ (2,926 m). SWA Lithium is also undertaking an extensive field program to re-enter the wells drilled in 2023 to conduct detailed reservoir testing and brine sampling work.

New Exploration Well
The new well, named Lester-1, is a vertical exploration well being drilled by local contractors, and its location is shown in Figure 1 below. The well fills in a data gap in SWA Lithium’s proposed first area of operation, and after spudding of the well on December 27^th, 2024, is now at a depth of 8,000’ and advancing steadily. During drilling, it is intended to retrieve core from the Upper and Middle Smackover Formation limestone and the bore terminate in the Lower Smackover Formation. After installation of production casing, the borehole will be selectively perforated in zones of interest and multiple large-scale representative samples of lithium brine will be produced from the formation. The same horizons of interest will also be subjected to permeabilitity testing to assess reservoir characteristics and behaviour. Discrete core samples will be sent for third party assessment of porosity and permeability. All data gathered from this new well will be used to inform the forthcoming front end engineering design (“FEED”) and Definitive Feasibility Studies (“DFS”). An image of the rig and drillsite is shown in Figure 2 below.

Field Program
The SWA team is also conducting an extensive field program at four wells in the proposed first area of operation (the four other wells shown on Figure 1). The work consists of well re-entry, hydraulic testing to determine reservoir characteristics, and brine sampling and testing. In addition, large volumes of brine have been collected from the International Paper Company (IPC-1) to allow the field-based pilot testing to be operated (see Standard Lithium’s recent news release dated December 19, 2024). To date, the work has demonstrated that reservoir properties are better than previously gathered in the preliminary feasibility study, and also, where lithium brine samples have been sent off for third-party analysis, the lithium concentrations are higher than previously published. Key data will be made public when available, and all relevant data will be provided in the DFS later in 2025, along with all QA/QC information.

Standard Lithium’s Director and President, Dr. Andy Robinson commented: “The Standard Lithium and Equinor teams, along with our various field and drilling partners are working hard to gather all the remaining sub-surface data we require for our first commercial lithium project. The remaining field programs are required so that our engineering and design partners can complete the FEED and DFS studies by mid-2025. The SWA Lithium Joint Venture remains focussed on execution and moving the Project towards commercialisation.”

Qualified Person

Steve Ross, P.Geol., a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the relevant scientific and technical information that forms the basis for this news release. Mr. Ross is Vice President, Resource Development for the Company.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of lithium-brine bearing properties in the United States. The Company prioritizes brine projects characterized by high-grade resources, robust infrastructure, skilled labor, and streamlined permitting. The Company aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully-integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s signature project, the SWA Project, is located on the Smackover Formation in southern Arkansas, a region with a longstanding and established brine processing industry. The Company has also identified a number of highly prospective lithium brine project areas in the Smackover Formation in East Texas (“ETX”) and is conducting an extensive brine leasing program in this region. The Company is developing the SWA and ETX Projects in a 55:45 Joint Venture with Equinor. In addition, the Company has an interest in certain mineral leases located in the Mojave Desert in San Bernardino County, California.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on Thursday

Standard Lithium and Equinor Finalize $225 Million Grant from the U.S. Department of Energy for the South West Arkansas Project

January 16, 2025  www.streetinsider.com

LEWISVILLE, Ark., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Standard Lithium Ltd. (“Standard Lithium”) (TSXV: SLI) (NYSE:A: SLI), a leading near-commercial lithium developer, and Equinor, a global energy leader, today announced that its jointly-owned U.S. subsidiary, SWA Lithium LLC, has closed the US$225 million grant from the U.S. Department of Energy’s (“DOE”) Office of Manufacturing & Energy Supply Chains. The grant will support construction of Phase 1 of the South West Arkansas (“SWA”) project.

“Closing of the DOE grant is a testament to the caliber of the South West Arkansas project,” said David Park, CEO and Director of Standard Lithium. “SWA is one of the highest-grade lithium brine projects in North America, and through the use of DLE technology, a near-term, sustainable opportunity to help secure America’s domestic lithium supply chain.”

“The U.S. Department of Energy’s support demonstrates the project’s maturity and strengthens its financial robustness as we work towards a final investment decision. We look forward to working with Standard Lithium and alongside the local community to enhance the US lithium supply chain by deploying innovative technology,” says Hege Skryseth, Executive Vice President for Technology, Digital & Innovation in Equinor.

The SWA project is expected to be one of the world’s first commercial-scale Direct Lithium Extraction (“DLE”) facilities. The project, located in Lafayette and Columbia Counties, Arkansas, is expected to produce 45,000 tonnes per annum of lithium carbonate, developed in two phases of 22,500 tonnes each. It is being developed in partnership with global energy leader Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor.

A Definitive Feasibility Study and Front-End Engineering Design for the Project are currently underway. The partnership is targeting a Final Investment Decision (“FID”) by the end of 2025 with Phase 1 production commencing as soon as 2028.

As part of receiving the grant, the Project is subject to the National Environmental Policy Act (“NEPA”) and will require completion of an Environmental Assessment (“EA”). The Company expects to complete the EA this year, prior to reaching FID. More information, including the opportunity for public comment and review, will be shared as the process progresses beginning in 2025.

David Park stated, “We’re committed to ensuring this project is a win for the Lewisville and southwest Arkansas communities. For us that means adding approximately 100 direct, long-term jobs and 300 construction jobs, with a commitment to hire at least 40% of the operations workforce locally.”

Additionally, this Project will further benefit the local community through infrastructure improvements, healthcare initiatives, educational partnerships, and workforce development programs.

About Standard Lithium Ltd.

Standard Lithium is a leading near-commercial lithium development company focused on the sustainable development of a portfolio of large, high-grade lithium-brine properties in the United States. The Company prioritizes projects characterized by the highest quality resources, robust infrastructure, skilled labor, and streamlined permitting. Standard Lithium aims to achieve sustainable, commercial-scale lithium production via the application of a scalable and fully integrated Direct Lithium Extraction (“DLE”) and purification process. The Company’s flagship projects are located in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. In partnership with global energy leader Equinor ASA, Standard Lithium is advancing the South West Arkansas project, a greenfield project located in southern Arkansas, and actively exploring promising lithium brine prospects in East Texas. Additionally, the Company is advancing the Phase 1A project in partnership with LANXESS Corporation, a brownfield development project located in southern Arkansas. Standard Lithium also holds an interest in certain mineral leases in the Mojave Desert in San Bernardino County, California.

Standard Lithium trades on both the TSX Venture Exchange and the NYSE American under the symbol “SLI”; and on the Frankfurt Stock Exchange under the symbol “S5L”. Please visit the Company’s website at www.standardlithium.com.

About Equinor

Equinor is an international energy company committed to long-term value creation in a low-carbon future. Equinor’s portfolio of projects encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050. Headquartered in Norway, Equinor is the leading operator on the Norwegian continental shelf and is present in around 30 countries worldwide. Our partnership with Standard Lithium to mature DLE projects builds on our broad US energy portfolio of oil and gas, offshore wind, low carbon solutions and battery storage projects.

For more information on Equinor in the US, please visit: Equinor in the US - Equinor

Qualified Person

Steve Ross, P.Geol., a qualified person as defined by National Instrument 43-101 – Standards of Disclosure for mineral projects, and Vice President Resource Development for Standard Lithium, has reviewed and approved the relevant scientific and technical information in this news release.

 

• ▶ Reply

• ‹ Previous
• 1
• …
• 8
• 9
• 10
• Next ›
• Page