Source: ESP Resources, Inc.
ESP Resources, Inc. (OTCBB:ESPI.OB) (the "Company" or "ESP Resources"), an oil and gas services company offering analytical services and essential custom-blended oil and gas well chemicals which improve production yields and overall efficiencies, today announced the deployment of its 6th chemical delivery fracking (a.k.a. hydraulic fracturing) unit and provided an update on continued revenue growth from its chemical delivery units.
The Company's chemical delivery fracking units are deployed to natural gas wells from its Guy, Arkansas district office. The 6th chemical delivery fracking unit was deployed on December 30, 2011 and is set for completion work in Oklahoma.
Each unit pumps chemicals to treat the fluids used in the completion of oil and gas wells from "shale" formations. Each unit consists of a trailer mounted pumping system with associated power generation components, a chemical supply trailer, safety and spill prevention equipment, communication devices, and computerized reporting equipment. It is anticipated that current units will be used in the completion of wells in the Fayetteville Shale in Northern Arkansas. ESP Resources' Guy, Arkansas office is located in the middle of the shale formation trend where it is able to easily and economically supply the chemical units to any of the 21 counties where drilling activity is currently ongoing.
Moreover, the Company is currently supplying specialty chemicals and services to two of the largest independent oil and gas operators for the use of these units on a continuous basis. The Company's specialized chemical formulation provides for a longer term bacteria-contamination elimination time frame than what is currently supplied by its competitors. The longer term time frame provides the Company's customers significant cost savings in the removal and/or treatment of contaminants from the oil and gas well-stream once the well has been placed into production. Potential savings via increased productivity can be substantial for the Company's customers.
Revenue from the Company's fracking units business started in June of 2011 and is already expected to exceed management's original September 2011 estimates of $9.0 million over the next year. Fracking unit revenue is in addition to the Company's existing petrochemical production business.
David Dugas, Chief Executive Officer of ESP Resources, commented, "With the deployment of our sixth unit, we have not only boosted our fracking revenues and increased our twelve month forecast, but we have also increased our ability to capitalize on new business from some of our major oil & gas customers. We are pleased that this business segment is seeing healthy growth and expect this trend to continue. Given the amount of well completion work available now and that is anticipated going forward, we believe that we can maintain a continuous stream of deployment of these units on a long-term basis."
ESP Resources deploys 6th chemical delivery fracking unit
Source: ESP Resources, Inc.