GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER – JULY 2016 VOLUME 1 ISSUE 2

THE REGIONAL CENTER TEAM IS GROWING

RICHARD HARDIN

Richard Hardin’s diverse background

includes positions in the oil & gas

exploration industry from roughneck to

president of Hardin Oilfield &

Underground, Inc. Since 2008, Mr. Hardin

has served as President of HO&U

specializing in centrifugal pumps, fluid

movement and solids control systems

design.

INSIDE THIS ISSUE

THE REGIONAL CENTER TEAM IS GROWING

SALTWATER RECYCLING FACILITY UPDATES AND BENEFITS

INCREASES IN OIL PRICES ON THE HORIZON?

WASTEWATER TREATMENT BOOMS

WATER SYNERGY THROUGH ABOVE GROUND REMEDIATION

GREAT SOUTHWEST REGIONAL

RICHARD HARDIN VICE PRESIDENT OF OPERATIONS

NEWSLETTER CENTER

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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Mr. Hardin retired as a Major from the U.S.

Marine Corps in 2005. As an officer, he was

responsible for project management of an

experimental airborne communications

platform, (IAC3), for the Marine Corps

Warfighting Lab. Mr. Hardin studied

petroleum technology at Tyler Junior College

and at The University of Texas in Austin. He

holds a BS in Aviation Management from

Southern Illinois University at Carbondale.

AN TRAN

Ms. An Tran recently

joined the team at

GSWRC, LLC as a

Research & Development

Assistant, and works out

of the corporate

headquarters in Austin, Texas. Prior to joining

the team, in May 2016, An earned a B.S in

Chemical Engineering and Minor in

Mathematics, Chemistry, and Music from

McNeese State University, in Lake Charles, LA.

While attending

McNeese, An acted as a

Research Assistant and

studied the Production of

Fresh Water from Sea

Water and conducted

research on

Ethylene/Propylene

separation, Vinyl Chloride, and Ethanol

Production. An also served as a Teaching

Assistant, Lab Coordinator, and Tutor at

McNeese State University.

RICHARD HARDIN

AN TRAN

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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THE PERMIAN BASIN

According to Forbes Energy, “The Permian Basin

has long been the most important oil and gas

producing area in the United States.” The

Permian Basin is a significant oil producing area

covering 59 counties in West Texas. The Saltwater

Recycling Facilities (SWR) in both Ward and

Reeves Counties are located in the Permian Basin.

The SWR’s provide saltwater recycling services to

the West Texas oil and gas industry, also located

in the Permian Basin.

Reports continue to predict the oil production in the Permian Basin will increase through

2018. E&P Magazine credits this continued success to the established infrastructure (some

wells dating first production to 1920’s), proximity to the Gulf Coast, and well known

formations.

SALT WATER RECYCLING FACILITY UPDATES

TEXAS COUNTIES IN THE PERMIAN BASIN

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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WARD COUNTY

Bring on the water! Situated perfectly in the Permian Basin, the Ward County Saltwater Recycling Facility is days away from recycling its first barrels of water.

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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KEY BENEFITS OF THE SWR FACILITY PROJECTS

1. LOCATION - West Texas Permian Basin oil patch of Texas, the region with the

largest number of producing wells and the most rapid growth in new oil production.

2. STABLE TEA - $ 500,000.00 investment level, qualifies for approval as a “Rural

Project”. This designation is unaffected by the newly proposed EB-5 legislation,

unlike the “Big City”, urban projects.

3. PREDICTABLE JOB CREATION - which is critical in meeting the requirements to

qualify for the green card. Expenditure model economic study conducted by Kim

Atteberry, former Chief Economist at USCIS.

4. PROJECT OWNS THE LAND - for the facility. All components of the facility are

prefabricated, allowing for a 90 to 120-day construction timeline. This provides

documentation for the expenditure model (job creation requirement) in the very

earliest stages of the project.

5. SOLID EXIT STRATEGY - in place to return all of investor’s original investment based

on cash profits generated from the project’s strong cash flow. No need to sell the

property or refinance to pay off the EB-5 loan.

6. FIRST POSITION - EB-5 investors have a first priority security interest in all of the

projects assets (land, equipment, accounts receivables, etc.) that are pledged as

collateral against the EB-5 loan.

7. ECO-FRIENDLY -our projects are “Green Projects” that protect

the environment by recycling the wastewater created from oil

production. Unlike our competition, we remove the chemicals

and solids, and dispose of the waste without the use of injection

holes that force the water back into the earth.

8. CUTTING EDGE TECHNOLOGY - we have an exclusive “water polishing”

technology that removes all of the skim oil from the produced water at cost and

volume levels unmatched in the industry.

9. USCIS DESIGNATION - Great Southwest Regional Center, LLC received approval

from the USCIS as a “Designated Regional Center” in May of 2012.

10. ELITE TEAM OF PROFESSIONALS - during the past four years, GSWRC has assembled an elite team of professionals, comprised of pre-imminent Immigration and Securities law firms, Economists, Business Consultants, and Project Developers.

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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UPDATES IN THE OIL

AND GAS INDUSTRY

Sources continue to predict an

increase in oil production and oil

prices. The predictions are based

on several factors. On the

forefront, those contributors

include reduced stockpiles of over

supplies and an increase in

demands in Asian for new

development.

Oilprice.com reports, “The oil glut

is over, says the world’s most

powerful man.” The newly

appointed Minister Energy,

Industry and Mineral Resources of

Saudi Arabia, or “oil Minister”

spoke to the Houston Chronicle

newspaper advised that the

overproduction and supply glut

are finally vanishing. He noted

with the disappearance of the

oversupply, approximately 530

million barrels, we would see a

gradual increase in the price of oil,

as the demands around the world

increase.

Contributing to the demand that

will lessen the oversupply of oil, is

Asia’s developing country of

Myanmar. Asia Development

Bank reports, “After decades of

isolation, the Southeast Asian

nation of Myanmar is roaring

ahead with the fastest growing

economy in Asia in 2016.”

Despite the devastating cyclone

that struck in 2015, Myanmar’s

economy is expected to grow at a

rate of 8.4 percent in 2016 and 8.3

percent in 2017.

World Bank also reports, other

Asian contributors include the

Philippines and Vietnam. Growth

in the rest of developing East Asia

remains resilient and is expected

to ease from 6.5% in 2015 to 6.3%

in 2016 and 6.2% in 2017-18.

Noteworthy of mention, other

factors that contribute to the

prediction of the oil production

and price increases, include, ideal

production environments, budget

cuts in sectors of the oil industry in

oil producing countries, and of all

things, reduction in oil production.

Long term, the reduction in

production will result in an

increase in demand and ultimately

drive up the cost.

The consensus in predictions,

“what goes down, must come

up.”

SAUDI OIL MINISTER KHALID AL-FALIH

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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THE STRATEGIC WATER

SOLUTIONS CORNER

FRACKING BOOM DRIVES INCREASE IN WASTEWATER TREATMENT

In line with the predictions for increases in oil prices, Navigant Research reports increases in

wastewater treatment as well. Extracting oil requires water, tons of water, literally. One

method of extracting oil is referred to as hydraulic fracturing or “fracking”.

Hydraulic fracturing or “fracking” is the process of pumping fine sand suspended in a mixture

of water and polymer at high pressures into the well to crack open rock formations to release

oil and gas. When this mixture flows back, the sand remains in the formation and provides

channels for the oil and gas to flow into the main well bore to reach the surface.

It is estimated that fracking consumes up to 9.6 million gallons of water per well per day, up

from 4.3 million gallons per day. On the front end, the hydraulic fracking wells withdraw large

volumes of water in the fracking process; up to one million gallons of freshwater per wellhead.

On the backend, up to 60% of the water injected into the wellhead during fracking, will

discharge back out of the well as flow back wastewater. During the life of the fracking well, it

will discharge an estimated 100,000 gallons of wastewater per day.

Navigant’s recently published report analyzes the wastewater treatment market between 2016

and 2025. The report predicts revenue from water treatment from both fracking and the

declining method of deep well injection, is expected to reach $4 billion by the year 2025.

GREAT SOUTHWEST REGIONAL CENTER, LLC NEWSLETTER JULY 2016 | Issue 2

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WATER SYNERGY THROUGH ABOVE GROUND REMEDIATION

Our guiding philosophy in developing solutions for water treatment is Water Synergy:

Eco-Friendly Solutions

Cost Effective Operations

New Revenue Streams

Our business model aims to achieve all three value drivers for the oil & gas industry.

There has never been a better time to seize the opportunity to provide superior water treatment

solutions to the oil & gas industry and the timing is ideal to be regarded as an innovator in the

industry. The industry as a whole is grasping for solutions to operate in a more cost- effective manner.

The answer is the Strategic Water Solutions (SWS) filtration system.

Each system is developed and sized for

capacity, with state-of-the-art point of use

controls. Equipment will include a series of

different sized micron filters, specially-

treated ceramic membranes, centrifugal

pumps, Flow meters, pressure sensors and

electronically activated valves with a fail-safe

free flow fluid path.

The basic function of SWS ceramic

membranes is to “de-water” the wastewater.

SWS utilizes a proprietary coating that

separates the organics from water, and allows each element to be re-used or recycled, adding

tremendous value to what traditionally is disposed of as waste.

ECO-FRIENDLY OIL COMPANIES & INDUSTRY99.9% removal of reservoir damaging bacteria from the

water.

Consistent water quality output with a varying quality

feed water.

No chemicals are used ("green" process).pH levels between 4 and 12 do not affect the filter

properties.The technology prevents filter fouling, which reduces

downtime, costs, and impact on the environment.Minimal moving parts (feed pump, recirculation pump).

Low energy cost (50-70 psi differential pressure). Less than .08 ppm of TSS remaining.

Ahead of the curve for environmental compliance and

regulations.Scalability to handle multiple applications and volumes.

Key Benefits of CERAMIC MEMBRANE Technology