STWA's Applied Oil Technology (AOT™) May Alleviate Oil Transportation Challenges for Bakken Shale Formation and Other Domestic Oil Producing Regions

Download PDF

SANTA BARBARA, CA--(Marketwire - Nov 3, 2011) - STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets, commented today that its Applied Oil Technology (AOT™) for supplemental oil viscosity reduction may solve oil transportation challenges for domestic oil producers by increasing pipeline flow rates and reducing pipeline transportation costs. This includes pipelines in regions such as the Bakken Shale, formation where production has been increasing rapidly according to the U.S. Energy Information Administration, from one million to fifty million barrels per year from 2005 to 2009. More information can be found at:

STWA's Applied Oil Technology (AOT™) is a new technology that treats crude oil within transport pipeline networks to reduce pipeline energy consumption per mile. As treatment is deployed, flow resistance within the pipeline decreases, reducing cost per barrel transportation costs and allowing flow rates to increase. AOT™ has been shown in recent field testing at the U.S. Department of Energy's (DOE) Rocky Mountain Oilfield Testing Center (RMOTC) to deliver immediate pipeline efficiency gains of 13.14% to 13.55% when operating at one-third of its minimum power requirement. The purpose of the new technology is to reduce the operation costs of pipelines per barrel of crude oil.

"We believe that major domestic pipeline companies stand to benefit from the implementation of AOT™," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "The issue is not (oil) depletion, but rather the difficulty of extraction and transportation. These include projects such as the Bakken Marketlink, which will deliver U.S. crude oil from Baker, Montana to Cushing, Oklahoma, as well as other projects where heavier grades of oil need to be moved through pipelines in cold weather conditions. The Bakken formation is certainly one of the fastest growing crude oil production regions in the U.S. today where there simply isn't enough capacity to transport what is being pulled from the ground. We believe the commercialization and application of AOT™ will help producers in the Bakken Shale formation area and other domestic regions alleviate some of the difficulty in extraction and transportation of crude oil from new regions."

Mr. Kyte added, "As we predicted, 2011 is shaping up to be a monumental year for STWA. Field scale testing of a working AOT™ prototype is an exciting development. We believe the relevance our technology to the energy supply delivery system is enormous and could provide a security advantage in its ability to assist in U.S. energy independence."

About STWA, Inc.

STWA, Inc. (OTCBB: ZERO) is an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets. The Company's Patented and Patent Pending technologies, including AOT™ (Applied Oil Technology), under development with Temple University, and ELEKTRA™ (for Improved Diesel Engine Efficiency), provide efficient and cost-effective means of improving the efficacy of crude oil transport and diesel engine efficiency to assist in meeting global increasing energy demands and emission quality standards. Applications include: (AOT™) Crude oil extraction & delivery systems, including oil platforms, oil fields and pipeline transmission systems. (ELEKTRA™) Diesel trucks, trains, marine vessels, military fleets and jet turbines.

More information including a company Fact Sheet, logos and media articles are available at:

Safe Harbor Statement

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.