TW Resources has signed a binding letter of intent to acquire JNC Energy Systems and its two affiliates, Green Line Power (GLP) and TexRep7.

The purchase price to be paid by STW Resources includes STW Resources stock and cash for the assets of JNC and all of the membership interests of GLP and TexRep7.

Following the close of the acquisition, JNC management will join the STW Resources’ executive team.

It is expected that JNC and its affiliates, will become a wholly owned subsidiary of STW Resources upon consummation of the transaction.

The closing of the transaction is subject to the execution of definitive agreements and will be contingent on a number of customary closing conditions, including the company’s securing adequate financing of at least $1.3m, completion of satisfactory due diligence and financial audits, and securing various required consents and approvals.

JNC provides electricity for use on site by the oil and gas producers or sold to retail and commercial customers by interconnecting with the electrical grid at the generator site.