EcoStim Energy Solutions Awarded New Long-Term Contract -- Value Should Exceed $50 million
HOUSTON, TX and NEUQUEN CITY, ARGENTINA -- (Marketwired) -- 05/03/17 -- Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) ("EcoStim" or the "Company") announced today that the Company has been awarded a two-year contract with the largest operator in Argentina for their tight gas completions program. The effective date for this contract was April 1, 2017 and substantial work has already been executed under this contract. This contract will provide a guaranteed minimum level of compensation to EcoStim (roughly 40% of the contract value) although the operator expects the completion program to generate over $50 million in completions work over the contract's term. As tight gas drilling expands over the next several years in Argentina with the benefit of government supported natural gas prices, this relationship should provide the Company with a unique opportunity to participate in further growth opportunities.
J. Chris Boswell, the Company's President and Chief Executive Officer stated, "This contract award is a big win for our Company. After just two years of building our reputation and establishing our credibility in the Argentina market, we have now secured the largest backlog in Company history and one that should allow our company to generate positive EBITDA. This contract, together with the recently announced contract in Oklahoma, should give the company a solid foundation and provide strong revenue growth and positive cash flow. With operations in Argentina and the improved market in Oklahoma, we believe the Company is now very well positioned. Congratulations to the EcoStim team for their hard work and dedication. These efforts proved critical in securing this contract in a very competitive market. I am very proud of the success for our team and look forward to future business opportunities."
About the Company
Eco-Stim Energy Solutions is an environmentally focused oilfield service and technology Company providing well stimulation and completion services and proprietary field management technologies and to oil and gas producers drilling in the 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.
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 10-K filed with the Securities and Exchange Commission on March 28, 2014 and risks relating to 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 the Company's resources and liquidity; difficult and adverse conditions In the domestic and global capital and credit markets; risks related to the concentration of our operations in South America; shortages of oilfield and well stimulation service equipment, services and qualified personnel and increases in costs for such equipment, services and personnel; uncertainties about the Company's ability to successfully execute its business and financial plans and strategies; general economic and business conditions, either internationally or domestically or In the Jurisdictions In which the Company operates; competition in the oil and natural gas industry; uncertainty concerning the Company's assumed or possible future results of operations; the Company's 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.
Source: Eco-Stim Energy Solutions, Inc
Released May 3, 2017