ESPI (~.122) ESP Resources Commences Work on Shale Gas Wells With New Chemical Delivery Units
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ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), an oil and gas services company, announced that two chemical delivery units used in the pumping of chemicals in the hydraulic fracturing (fracking) business are being deployed to natural gas wells from its Guy, Arkansas district office. The units pump chemicals to treat the fluids used in the completion of oil and gas wells from "shale" formations.
Each unit consists of a trailer mounted pumping system with associated power generation components, a chemical supply trailer, safety and spill prevention equipment, communication devices, and computerized reporting equipment. The Company commenced the use of one the units during the month of June to assist in the completion and fracturing of 10 wells and anticipates that both units will be working on a full time basis starting this month. Currently, ESP Resources is supplying specialty chemicals and services to two of the largest oil and gas operators in the state of Arkansas and is also negotiating contracts for the use of these units on a continuous basis. It is expected that the units will be used in the completion of wells in the Fayetteville Shale in Northern Arkansas. The Company's Guy, Arkansas office is located in the middle of the shale formation trend and can economically supply the chemical units to any of the 21 counties where drilling activity is currently ongoing.
The units pump treatment chemicals to eliminate the bacteria contamination present in the fluids used in the fracking process. The Company has developed a specialized chemical formulation that provides for a longer term bacteria-contamination elimination time frame than what is currently supplied by its competitors. The longer term time frame provides the Company's customers significant cost savings in the removal treatment of contaminants from the oil and gas well-stream once the well has been placed into production. Potential savings via increased productivity can be substantial for the Company's customers.
Revenue generated by the Company from one of these units is projected to average $150,000 per month and the Company expects that revenues from the two units will increase total company revenue by 30%.
"The deployment of these units is an exciting and integral part of our plans for expansion," stated David Dugas, Chief Executive Officer of ESP Resources. "We are currently constructing six additional units and anticipate delivery of each new unit between now and the end of September. We have identified a current market utilization of more units in Arkansas and plan to aggressively pursue that growth in the coming months," said Dugas.
About ESP Resources, Inc.:
ESP Resources, Inc. is a publicly-traded (OTCBB:ESPI) (the "Company" or "ESP Resources") oil and gas services company headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. The Company provides its specialty products and services for a variety of oil and gas field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The Company also distributes its specialty petrochemicals to oil and gas operators internationally. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at www.espchem.com.
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.
CONTACT: David Dugas, President
ESP Resources, Inc.
david.dugas@espchem.com
(337) 706-7056
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