Value Microcaps Junior Energy

[beigledog]

Bob...thanks for this excellent post last week. I looked at the frac sand guys a couple of years ago, but I don't really like the barriers to entry for the industry. Unlike say, a copper mine which can take as long as two decades), it seems like anyone can just throw up a frack sand mine in about 6 months.

What do you think about the move to regional sands? US Silica has made two regional sand acquisitions in the last couple of years (NBR last year) and claim that regional sands (which are thought to be lower quality or brown sand) have gone from ~16% to 34% (and even said 41% in their NBR acquisition presentation). Northern white is losing share to the cheaper stuff.

SLCA had a presentation at their investor day about regional sands that you can check out here:

http://phx.corporate-ir.net/phoenix.zhtml?c=247793&p=irol-presentations