Eco-Stim Energy Solutions Inc. (OTC:ESESD) has completed the lease financing for a package of oilfield completion equipment that will be exported to Argentina. This equipment consists primarily of a coiled tubing unit and various pieces of complementary equipment.
In this transaction, EcoStim has sold the equipment package to a third-party leasing company controlled by two of the company's directors for $3.5 million. Simultaneously, the equipment package was leased back to an affiliate of the company for a 60-month period beginning in February 2014. The lease financing transaction closed on December 30, 2013.
Chris Boswell, EcoStim's president and CEO, stated, "This financing provides working capital to support operational startup costs while minimizing dilution to existing shareholders. We are working on the acquisition of additional equipment, both locally in Argentina and in the North American market, to further support our growing business in Argentina and the world-class Vaca Muerta shale play."