Superior Silica Sands Announces Transaction with Performance Technologies, L.L.C.
Fort Worth, Texas - December 22, 2015 - Superior Silica Sands LLC ("SSS"), a subsidiary of Emerge Energy Services LP (NYSE: EMES), is pleased to announce that it has completed the acquisition of approximately 94 million tons of high quality northern white silica sand reserves in Jackson County, Wisconsin from a subsidiary of Performance Technologies, L.L.C. ("PTL"), which is wholly-owned by Seventy Seven Energy Inc. (NYSE: SSE). The assets acquired include certain owned and leased land, sand deposit leases and related prepaid royalties, and transferable mining and reclamation permits. In consideration for the assets, PTL and SSS amended and restated the existing supply agreement between the parties and entered into a new sand purchase option agreement that provide PTL with a market-based discount on sand purchased from SSS. At the closing of the transaction, SSS also reimbursed PTL for certain capital expenditures associated with the assets.
Under the new agreements with PTL, SSS has the option to supply the contracted tons from its existing footprint of northern white sand operations or construct a new sand mine and dry plant in Jackson County, Wisconsin. Given the current challenging market conditions for proppant demand, SSS will defer the construction of the new facility until the North American oil and gas markets improve.
"PTL has been a valued customer of SSS for several years, so consummating a transaction with them made strong strategic sense," commented Rick Shearer, President and CEO of SSS. "This transaction not only provides SSS with an increase to its high quality sand reserves but also strengthens our position in the market place with a leading pressure pumper across a number of shale plays in North America. We look forward to working more closely with PTL by supplying them a reliable base of high quality frac sand and newly expanded technologically-driven proppants."
About Emerge Energy Services LP
Emerge Energy Services LP ("Emerge Energy") is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells. Emerge Energy also processes transmix, distributes refined motor fuels, operates bulk motor fuel storage terminals, and provides complementary fuel services. Emerge Energy operates its sand segment through its subsidiary Superior Silica Sands LLC and its fuel segment through its subsidiaries Direct Fuels LLC and Allied Energy Company LLC.
This release contains certain statements that are "forward-looking statements." These statements can be identified by the use of forward-looking terminology including "may," "believe," "will," "expect," "anticipate," or "estimate." These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge Energy's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC. The risk factors and other factors noted in the Annual Report and Quarterly Reports could cause actual results to differ materially from those contained in any forward-looking statement. Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Emerge Energy Services LP via Globenewswire
Source: Thomson Reuters ONE
(December 22, 2015 - 5:00 PM EST)
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