North America Frac Sand, Inc. Acquires One of the Largest Single Location Frac Sand Deposits in the World
VANCOUVER, British Columbia, Oct. 19, 2015 (GLOBE NEWSWIRE) -- North America Frac Sand Inc. ("NAFS" or the "Company") (OTCQB:NAFS) (www.NAFSINC.ca). On September 9, 2015 we announced the acquisition of North America Frac Sand (CA) Ltd. and its 30,000 acres of leases that are estimated to contain 6.4 million tonnes of recoverable reserves of frac sand, and potential reserves of at least 66 million tonnes.
After the successful sale of their sand deposits in Lloydminster, Alberta; Ray and Dwight Newton began testing some optioned acreage approximately 30 miles east of Saskatoon, Saskatchewan. Expenditures of approximately $3 million for exploration, drilling, and analysis later, the testing has proved out 6.4 million tonnes of recoverable reserves of frac sand. Subsequent testing, will prove out a substantial portion of the 100 million tonnes identified.
The three challenges of discovering new frac sand reserves are:
Meeting all of the API specification with respect to size and shape of the frac sand deposits. Our frac sand deposit contain the three most common sizes 20-40,30-50, 40-70 & 70-140 all of which meet API standards.
Sufficient contiguous volume and value to be economical. Our frac sand deposit is both of sufficient volume and quality to be economic. We have minimum overburden; we have our mining permits; we are ready to continue to prove up our resource, build our plant, and start shipping.
Are in close proximity to either, oil and natural gas reservoirs, or at least to rail, for cost efficient transportation. We are truck-able distance to the major Bakken reservoir in North Dakota, Montana, Alberta and Saskatchewan; as well as the Duvernay, Horn River, Montney, Viking and Cardium reservoirs of Western Canada. Annual requirements are in the millions of tonnes for new drilling and recompletions.
We are strategically located to replace a significant portion of the 70% of the frac sand currently being imported into Canada from Wisconsin. By trucking directly to our customers, not only do we save 1,500 km shipping costs, we by-pass the current bottlenecks of the supply chain, which are rail car availability; lack of trans-loading facilities and sand storage infrastructure; and improving last mile deliveries. Additionally, in this short term period of low price oil, we provide a cost efficient solution to deliver the frac sand exactly when and where the drillers require the frac sand.
About Frac Sand: Frac Sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity and roundness, and it is therefore a relatively rare commodity.
About North America Frac Sand, Inc.
North America Frac Sand, Inc. (OTCQB:NAFS) is headquartered in Calgary Alberta. With our 30,000 acres of leases and lease options, it is our short term intent to prove out the balance of our significant resource. It is our long term intent to commence shipments as soon as possible.
Should you wish to receive Company news via email, please email Anthony Ghitter at email@example.com and specify "North America Frac Sand" in the subject line.
Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this news release includes, but is not limited to, the ability of the Company to continue selling frac sand in the future, on a spot basis or otherwise. The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, future prices for frac sand and by-products, future demand for processed frac sand and the ability of the Company to restructure its debts. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the general volatility of frac sand and by-product prices and demand, geological, technical, drilling and processing problems, future currency and interest rates, an unwillingness of the Company's lenders to refinance the Company's debts on terms favourable to the Company or at all and the ability of the Company to continue selling frac sand. Additionally, if the Company is unable to obtain additional financing, the Company may be required to curtail activities and/or liquidate its assets or the Company's creditors may seek to seize its assets. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
CONTACT: North America Frac Sand, Inc. (OTCQB - "NAFS")
Investor Relations: Anthony Ghitter
(October 19, 2015 - 9:01 AM EDT)
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