HOUSTON, Oct. 15, 2014 (GLOBE NEWSWIRE) -- Eco-Stim Energy Solutions, Inc. ("EcoStim" or the "Company"), (OTCQB:ESES) announced today that the Company has acquired 54,000 hydraulic horsepower (HHP) of the latest generation Tier 4 compliant turbine powered pressure pumping equipment. The acquisition includes twelve trailers uniquely outfitted with twin triplex pumps capable of generating 4,500 HHP from each trailer, thus substantially reducing the surface footprint. This pressure pumping equipment, which was manufactured in 2012, is expected to provide EcoStim with the pumping horsepower needed to pursue several identified growth opportunities.
The purchase price of $6.5 million, for which the Company has secured attractive financing, includes substantial inventory and critical spare parts. EcoStim management estimates the replacement cost of this equipment to be approximately $33 million. The Company expects to complement this equipment package with industry standard control systems, data vans and blenders to be acquired at a later date. Overall, EcoStim believes it should be able to assemble a full pressure pumping spread at less than half the cost of a conventional pressure pumping fleet. If compared to another Tier 4 compliant fleet, the cost of this spread is likely one-third of the comparable cost.
J. Chris Boswell, EcoStim's Chief Executive Officer stated, "This equipment is completely aligned with EcoStim's vision for environmentally friendly, more efficient and lower cost solutions to developing shale resources. This is one of the few sets of Tier 4 compliant pressure pumping equipment in the industry. In addition, it runs on multiple fuel sources, including 100% field gas which has been demonstrated to save customers substantial dollars in annual fuel cost. Furthermore, it is configured in a way that reduces the surface footprint compared to conventional diesel powered pressure pumping fleets by 50%.
Based on our extensive due diligence and field analysis, we believe that a gas-fired turbine powered pressure pumping crew operating in the US market can save approximately $8 million per year in diesel cost. In the international markets where diesel fuel is often 2-3 times more expensive than in the US, we estimate that this equipment could potentially save a customer $16-24 million per year on fuel for a single pressure pumping spread. This is a very exciting development for the Company and we look forward to deploying this equipment in 2015."
Bobby Chapman, EcoStim's Chief Operations Officer, stated, "This equipment has not been heavily operated since it was introduced to the market in 2012. We believe the assets to be well-maintained, in very good condition and in line with our high standards. The equipment is unique in that it is capable of running 100% on field-produced natural gas (with no diesel mixture) while at the same time having the flexibility to run on CNG, LNG, diesel and several other fuel sources. Uniquely, this pumping equipment is also Tier 4 compliant when run on diesel fuel. The previous owner of the equipment used the equipment to execute approximately 4,000 pressure pumping stages with several hundred of those stages powered solely with field gas." Mr. Chapman added, "Upon completion of this transaction, when combined with our existing fleet and the equipment currently on order, we will have more than 74,000 HHP of pressure pumping capacity under management."
The Company's management is in early discussions with several customers and is still evaluating the optimal market for the deployment of this equipment.
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 markets. 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 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. 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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Source:Eco-Stim Energy Solutions, Inc.