SWA Lithium Advances Drilling and Testing in Arkansas Project

SWA Lithium Advances Drilling and Testing Program

SWA Lithium Initiates New Wells to Analyze Reservoir for Enhanced Production

SWA Lithium, a collaboration between Standard Lithium Ltd. (TSX-V: SLI) and Equinor, has begun drilling a new well in the Smackover Formation as part of their South West Arkansas Project. This well, located at a depth of approximately 8,000 feet, is aimed at furthering the understanding of the lithium reservoir and is expected to reach a total depth of 9,600 feet. In addition to this drilling operation, a comprehensive testing program is being executed that involves re-entering previously drilled wells to conduct meticulous reservoir testing.

Details of the New Exploration Well

The recently named Lester-1 vertical exploration well is being drilled by local contractors and is strategically positioned to fill a data gap in their first operational area. Since it spudded on December 27, 2024, the drilling has progressed steadily. Core samples are being retrieved from both the Upper and Middle Smackover formations, and the well will ultimately penetrate the Lower Smackover Formation. Upon the installation of production casing, selected zones will be perforated for lithium brine extraction.

Testing and Data Collection

This rigorous testing phase will involve permeability assessments to understand the reservoir’s behavior better. Collected core samples will undergo third-party evaluations to determine important characteristics like porosity and permeability. The information retrieved from this drilling activity will support upcoming design studies crucial for the project's development.

Comprehensive Field Program

A large-scale field program is also underway at four existing wells within the proposed first operational area, aimed at hydraulic testing and brine sampling. This work includes an initiative to use collected brine from the International Paper Company (IPC-1) for pilot testing purposes. Preliminary results indicate more favorable reservoir properties and higher lithium concentrations than previously expected. The public release of key data is anticipated as results unfold, which will be incorporated into the ensuing Definitive Feasibility Study (DFS).

Team Insights and Progress

Dr. Andy Robinson, President of Standard Lithium, emphasizes the team's dedication to gathering essential sub-surface data for a successful venture into commercial lithium extraction. The combination of drilling and testing efforts is designed to equip engineering partners with the necessary information to complete extensive feasibility studies by mid-2025.

Standard Lithium Ltd. and Its Strategic Focus

Standard Lithium distinguishes itself as a pioneering company in lithium development, prioritizing sustainability while focusing on projects rich in lithium-brine resources across the United States. The central aim is to implement an efficient Direct Lithium Extraction (DLE) process to ensure commercial-scale production. Their flagship SWA Project, located in Arkansas, benefits from a region renowned for brine processing and robust infrastructure. Furthermore, Standard Lithium is actively exploring additional prospective areas, particularly in East Texas, where a comprehensive leasing program is enhancing its portfolio.

About Equinor and Collaborative Efforts

Equinor, a global energy company, is committed to nurturing sustainable energy solutions and aims for net-zero emissions by 2050. Equinor's partnership with Standard Lithium is instrumental in advancing innovative DLE projects, leveraging its extensive experience in oil, gas, and renewable energy sectors. Combined, these companies are poised to make significant strides in the lithium extraction arena.

Investor and Media Contacts

For inquiries regarding investment or media, please contact:

Chris Lang
Director of Finance
+1 604 409 8154
c.lang@standardlithium.com

Connect with Standard Lithium on Twitter @standardlithium or on LinkedIn.

Frequently Asked Questions

What is the purpose of the new well being drilled by SWA Lithium?

The new well, Lester-1, is aimed at gathering critical data regarding the lithium reservoir to inform future production modeling and feasibility studies.

What is the expected outcome of the extensive field program?

The field program includes well re-entry, hydraulic testing, and brine sampling to enhance the understanding of reservoir characteristics while increasing lithium concentration through testing.

Who are the partners involved in SWA Lithium?

SWA Lithium operates as a joint venture between Standard Lithium Ltd. and Equinor ASA, collaborating on lithium extraction projects.

How does Standard Lithium approach resource development?

Standard Lithium focuses on sustainable development practices utilizing high-grade lithium-brine resources and aims for efficient, commercial-scale extraction methods through Direct Lithium Extraction technology.

What are the future plans for the South West Arkansas Project?

The strategic plans include completing feasibility studies by mid-2025 to advance towards commercialization while focusing on executing the ongoing drilling and testing programs.

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