THE WOODLANDS, Texas, Aug. 2, 2021 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) reported that it has a completed a preliminary technical assessment by an independent geological consulting firm to assess lithium and bromine exploration targets of the Company's approximately 31,100 net acres of brine leases in the Smackover Formation in Southwest Arkansas.  TETRA has rights to the brine, including rights to the bromine and lithium contained in the brine underlying this acreage, pursuant to certain brine leases and brine deeds with various landowners.  With respect to approximately 27,500 acres of that total acreage, TETRA had previously entered into an option agreement with Standard Lithium whereby Standard Lithium Ltd. has an option to acquire lithium rights.  Standard Lithium must make annual cash payments to TETRA to maintain the option to acquire the lithium rights. Pursuant to the option agreement, after Standard Lithium initiates commercial production, a royalty payment replaces the annual cash payments. The scope of the exploration target assessment is for bromine in all the approximately 31,100 net acres and lithium for the acreage where TETRA holds 100% of the lithium rights not subject to the option.  

For bromine, the technical assessment has identified a brine exploration target estimated to contain between 2.54 and 8.58 million tons of elemental bromine and for lithium the exploration target estimated to contain between 16,000 and 53,000 tons of elemental lithium. Using an elemental to Lithium Carbonate Equivalent ("LCE") conversion of 5.323, the lithium amounts to between 85,000 and 286,000 tons of LCE.   The current market price of LCE is approximately $12,500 per ton⁽¹⁾, and the current market price of bromine is approximately $3,174 per ton⁽¹⁾ in the U.S. and $7,882 per ton⁽¹⁾ in China. The market price of lithium and bromine is volatile and may change materially in the future.   

Brady Murphy, TETRA President and CEO commented, "TETRA has been focused on creating shareholder value by capitalizing on our key mineral assets, brine mineral extraction expertise, and deep chemistry competency to expand our offerings into the low carbon energy markets.  Bromine has been identified as a key mineral resource in zinc-bromide energy storage systems and our PureFlow™ high purity zinc bromide has been qualified by several battery technology companies. In recent weeks we received our first commercial order for PureFlow high purity zinc bromide and the forecast for PureFlow demand will require us to increase our future supply of bromine.  This exploration assessment is the first step for us to quantify the significant potential resource position we have in our Arkansas brine leases.  As we extract the bromine from our brine leases to service the oil and gas markets as well as the energy storage markets, we will have access to the lithium in the acreage where TETRA holds 100% of the lithium rights not subject to the Standard Lithium option.  The lithium battery market is already acknowledged to be a rapidly growing market, affording TETRA the opportunity to participate in a meaningful way.  In the coming periods we will assess the next steps towards developing these key minerals to augment our current global infrastructure and chemistry know-how allowing us to expand beyond the oil and gas market in which TETRA remains a significant market participant."

We are not currently able to determine the economic viability of the extraction of the lithium and bromine from the leased acreage. The extraction of lithium and bromine from these brine leases may require a significant amount of time and capital, which we are not able to estimate at this time. While we continue to evaluate the next steps regarding the potential development of our brine leases, we have yet to conduct exploration work on the leases. The exploration target's potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a mineral resource, and it is uncertain if further exploration will result in the estimation of a mineral resource. The exploration targets expressed should not be misrepresented or misconstrued as an estimate of a mineral resource or ore reserve.

(1)   Prices as reported by Intratec Solutions, LLC for bromine and by BMO Capital Markets research for lithium.

Company Overview and Forward-Looking Statements
TETRA Technologies, Inc. is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water management, frac flowback, and production well testing.  TETRA owns an 11% equity interest in CSI Compressco LP (NASDAQ: CCLP) and approximately 1.1% equity interest in Standard Lithium (NYSE: SLI).

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 the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning the exploration targets of lithium and bromine, the potential extraction of lithium and bromine from the leased acreage and the economic viability thereof, the timing and cost of such activities, and statements regarding the Company'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 the Company 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 the Company. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.

SOURCE TETRA Technologies, Inc.