Eco-Stim Energy Solutions Signs Term Sheet for Financing

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HOUSTON, April 7, 2014 (GLOBE NEWSWIRE) -- Eco-Stim Energy Solutions, Inc. ("EcoStim" or "the Company"), (OTCQB:ESES) today announced that the Company has signed a non-binding term sheet with a private equity firm (the "Investor") for a convertible debt facility. Under the proposed terms, the Investor would provide the Company with a $22 million convertible debt facility that would be available to the Company for two years after the closing date. In addition, the terms contemplate that the Company would grant a 30 day option to the Investor to purchase up to $8 million of the Company's common stock in a private placement for $6 per share. The convertible debt facility would be secured by certain of the Company's assets and would be available immediately upon closing. The outstanding debt would accrue interest at 14% per annum with interest payments due in arrears. Any amounts drawn under the facility would be due and payable in full four years from closing. Any outstanding balance under the convertible debt facility may be converted into the Company's common stock at a price of $6 per share at the option of the Investor. The Company would maintain the ability to repay the debt facility or force conversion after one year. The convertible debt facility will maintain customary financial and other covenants.

The terms do not contemplate that there would be any requirements as to the minimum amount of funds to be drawn under the facility and the Company would not be restricted from securing additional equity capital. The Company may also secure alternative debt financing for new equipment subject to certain limitations. The Company currently estimates that it will draw $8 million under the convertible debt facility upon closing. The net proceeds from the contemplated transactions would be used to fund a portion of the Company's capital needs and ongoing operations in Neuquén, Argentina where the Vaca Muerta shale formation is currently being developed. The closing of the transactions contemplated under the term sheet are subject to customary closing conditions and approvals, completion of due diligence and the execution of definitive transaction agreements.

The Company can provide no assurances at this time that the transactions contemplated by the term sheet will be consummated in accordance with the terms set forth in the term sheet, or at all.

About the Company

Eco-Stim Energy Solutions is an environmentally-focused oilfield service and technology company providing proprietary field management technologies and well stimulation and completion services 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.

Forward-Looking Statements:

The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the "Risk Factors" section of the Company's 8-K filed with the Securities and Exchange Commission on December 17, 2013 and risks relating to the ability of the Company to consummate the transactions contemplated by the term sheet, expected continued development of fracturing operations and unconventional activity in Argentina, expected financial results for past and future periods; the effects of government regulation, permitting and other legal requirements, including new legislation or regulation of hydraulic fracturing; drilling and operating risks; the adequacy of our capital resources and liquidity including, but not limited to; difficult and adverse conditions in the domestic and global capital and credit markets; risks related to the concentration of our operations in the South America; shortages of oilfield and frac service equipment, services and qualified personnel and increases in costs for such equipment, services and personnel; uncertainties about our ability to successfully execute our business and financial plans and strategies; general economic and business conditions, either internationally or domestically or in the jurisdictions in which we operate; competition in the oil and natural gas industry; uncertainty concerning our assumed or possible future results of operations; our existing indebtedness; and other important factors that could cause actual results to differ materially from those projected.

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.

CONTACT: Alexander Nickolatos, CFO 281-531-7200

Source:EcoStim Energy Solutions, Inc.