Eco-Stim Energy Solutions Adds Pumping Capacity From Argentinian Manufacturer
HOUSTON and NEUQUEN CITY, Argentina, Dec. 1, 2015 (GLOBE NEWSWIRE) -- Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) ("EcoStim" or the "Company") announced today that during the last week of November, the Company received delivery of three pump units that were manufactured by QM Equipment S.A. (QM), an Argentinian-based oil and gas equipment supplier. Each pump has a 2,500 BHP Caterpillar engine and a 2,500 HHP SPM quintuplex pump and Stewart & Stevenson control systems. The pumps have been fully tested and will be integrated with the Company's existing stimulation spread. This equipment, combined with the two additional pumps from QM that will be delivered within the next month, will considerably expand the Company's presence in the well stimulation market in Argentina.
J. Chris Boswell, the Company's Chief Executive Officer, stated: "Our Company's objective has been to establish our market presence in Argentina, and to systematically add well stimulation capacity to undertake larger and more complex jobs in preparation for the development of the extensive unconventional oil and gas resources in the Vaca Muerta shale. These three additional pumps will position us to compete for tight gas wells that generally have more stages per well and also require higher flow rates and horsepower."
These additional pumps will increase the Company's current capacity from 10,000 HHP to 22,500 HHP. In addition to the pumps, QM is manufacturing auxiliary equipment including a sand belt, a multi-sander, an iron truck and a manifold trailer, which will also be delivered over the next month to complement the existing stimulation fleet. EcoStim also has an option to add two additional pumps for delivery later in 2016. If these pumps are ordered and delivered, the Company will have total diesel-powered pumping capacity of 27,500 HHP. Moreover, one of these pumps is planned to include a bi-fuel engine with a gas blending kit that allows using natural gas, when available. This will be the first in the country of its class. This is aligned with EcoStim's strategy of developing and deploying technologies that have lower emission levels and operational costs.
Furthermore, the Company's expansion plans include adding a new high capacity blender, a new hydration unit, and two new data vans. We also plan to import into Argentina 27,000 HHP of fully refurbished turbine powered pumping units capable of operating on natural gas, LNG or CNG. These units are expected to arrive in the first quarter of 2016. This additional capacity should then allow us to operate three small fleets for the majority of 2016 and have the flexibility to combine fleets to do larger unconventional work as the market evolves. Based on recent customer conversations, we believe that there will be unconventional opportunities in the second half of 2016 and throughout 2017.
As we have outlined previously, we believe the market in Argentina is broken into three segments: (1) the conventional market (which can be executed with 10,000 HHP or less); (2) the tight gas market (which requires a minimum of 16,000 HHP); and (3) the unconventional market (which requires a minimum of 24,000 HHP).
Carlos Fernandez, the Company's Executive Vice President of Corporate Development and General Manager Latin America added: "We are glad to say that these locally manufactured units comply with international standards and are very excited about the opportunity to participate in the growth of the development of Argentina's conventional, tight gas and unconventional oil and gas resources. With the capacity we are adding, we should have the opportunity to comfortably address all three markets, and expect our growth to accelerate in 2016."
About the Company
Eco-Stim Energy Solutions is an environmentally focused oilfield service and technology company providing well stimulation and completion services and proprietary field management technologies to oil and gas producers drilling in the rapidly expanding international unconventional shale market. EcoStim's proprietary methodology and technology offers the potential to decrease the number of stages stimulated in shale plays through a unique process that predicts high probability production zones while confirming those production zones using the latest generation down-hole diagnostic tools. In addition, EcoStim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions, surface footprint and water usage. EcoStim seeks to deliver well completion services with better technology, better ecology and significantly improved economics for unconventional oil and gas producers worldwide
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
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