Annual report pursuant to Section 13 and 15(d)

Nature of Business

v3.19.1
Nature of Business
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business

1. Nature of Business

 

Historically, Eco-Stim Energy Solutions, Inc. operated as a technology-driven independent oilfield services company that offered well stimulation, coiled tubing and field management services to the upstream oil and gas industry. In September 2018, we completed work under our pressure pumping contract with our primary U.S. customer. Given the current weakness of the U.S. well stimulation market, in September 2018 we elected to suspend our U.S. well stimulation operations and significantly reduce our U.S. workforce in alignment with potential near-term opportunities, including pump down and miscellaneous pumping services. In Argentina, we previously operated under a transition agreement with our primary customer since May 2018 through the third quarter of 2018. Subsequent to the third quarter of 2018, we have not provided any significant services to our primary customer in Argentina under the transition agreement or otherwise and have not generated any material revenue from our Argentina operations since the third quarter of 2018.

 

During the fourth quarter of 2018, the Company completed the disposition of certain of its U.S. equipment and other operating assets to unrelated third parties in several separate transactions in exchange for aggregate cash proceeds, before commissions and selling expenses, of approximately $5.7 million. On January 24, 2019, the Company completed the disposition of certain of its U.S. equipment to an unrelated party in exchange for approximately $2.8 million of aggregate cash proceeds, before commissions and selling expenses. On February 21, 2019, the Company completed the disposition of certain of its U.S. equipment to an unrelated party in exchange for approximately $6.2 million of aggregate cash proceeds, before commissions and selling expenses. On March 14, 2019, the Company completed the disposition of certain of its U.S. equipment to an unrelated party in exchange for approximately $2.1 million of aggregate cash proceeds, before commissions and selling expenses. Net of commissions, the Company received approximately $16.8 million. In the U.S., we have sold materially all of the equipment, inventory and other operating assets relating to our U.S. operations and terminated all field level employees.

 

On March 18, 2019, the Company signed an agreement with an unrelated third party to purchase all of our material equipment and machinery assets in Argentina. See note 18. Subsequent Events.