Eco-Stim Energy Solutions Commences Work In Oklahoma Under Its One Year Contract
HOUSTON, TX and NEUQUEN CITY, ARGENTINA -- (Marketwired) -- 05/30/17 -- Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) ("EcoStim" or the "Company") announced today that it has declared "readiness" under its one year contract in Oklahoma with Midstates Petroleum Company, Inc. (NYSE: MPO) ("Midstates") and commenced field operations under that contract on May 23, 2017. The Company's first multi-stage horizontal well was completed without incident on May 26, 2017. This job represents the first deployment of EcoStim's uniquely redesigned turbine powered pumping units in the United States. The majority of the pumping horsepower deployed on the job was powered by turbine engines and 100% fueled by compressed natural gas ("CNG"). The pressure pumping units performed very well, achieving the performance criteria for the unique job characteristics specified by Midstates. EcoStim's turbine engines can also be run on natural gas supplied from the field or from a nearby sales pipeline, LNG or diesel fuel.
The Company expects to perform the completions for all of the Midstates wells in the midcontinent region during the term of the contract. In that connection, Midstates recently announced that they are evaluating the addition of a second drilling rig into the midcontinent region. The addition of another rig would increase the number of well stimulation stages performed by EcoStim and would keep EcoStim's first crew in Oklahoma fully utilized.
Barry Ekstrand, EcoStim's Senior Vice President of Operations North America, stated, "This is a very significant milestone for the Company as we have now successfully entered the U.S. well stimulation market. We signed this contract in late January 2017, completed a major financing in early March and began hiring our team and mobilizing equipment in mid-to-late March. In fewer than 60 days, we have secured a strategically located operations base, hired a superb operations team, mobilized the needed equipment to execute the work, secured the necessary supply chain and now have completed our first well stimulation job in a multistage horizontal well."
Mitch Elkins, Executive Vice President of Operations for Midstates, commented, "We are pleased to support emerging technologies in this industry that can also cost effectively reduce emissions and increase efficiencies in our operations. While we have yet to see the full cost benefits from the natural gas powered pumping units, we plan to move towards field gas as a fuel source and will continue working closely with the EcoStim team to achieve our cost control objectives."
J. Chris Boswell, EcoStim's President and Chief Executive Officer, continued, "This has been a tremendous team effort and I want to give special thanks to Bobby Chapman, Barry Ekstrand and Tommy Monsey, our Mid-continent District Manager, along with our full team in Fairview for their dedication to the success of this start-up. We also benefited from support received from our Argentina team during this start-up period, which I believe is among the fastest starts ever achieved in this industry. I am very proud of the effort put forth as well as the successes we have experienced recently and look forward to enhancing our strategic positions in both of our growth markets."
About EcoStim Energy Solutions, Inc.
Eco-Stim Energy Solutions is an environmentally focused oilfield service and technology Company providing well stimulation and completion services and proprietary field management technologies to oil and gas producers. EcoStim's proprietary methodology and technology offers the potential in high cost regions 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 and surface footprint. EcoStim seeks to deliver well completion services with better technology, better ecology and significantly improved economics for unconventional oil and gas producers worldwide.
About Midstates Petroleum Company, Inc.
Midstates Petroleum Company, Inc. is an independent exploration and production company focused on the application of modern drilling and completion techniques in oil and liquids-rich basins in the onshore U.S. The Company's operations are currently focused on oilfields in the Mississippian Lime play in Oklahoma and the Anadarko Basin in Texas and Oklahoma.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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Source: Eco-Stim Energy Solutions, Inc.
Released May 30, 2017