FracRock International, Inc. announced that it has signed a three year agreement with a significant E&P operator in the Neuquen basin of Argentina. The agreement sets forth the basic terms and conditions necessary to negotiate and execute a three year contract at market prices (with a 5% discount) and a minimum 40% utilization. Using market prices in effect today, the contract would yield revenues in excess of $250 million over the initial term. In addition to traditional hydraulic fracturing methods based on 30,000 horsepower of modern hydraulic fracturing equipment, FracRock will provide its unique EcoFrac Solutions which are eco-friendly methodologies to assist operators in developing the Vaca Muerta shale play in an environmentally responsible manner.
EcoFrac Solutions combine a number of exploration and production technologies in a manner that allow for a significant reduction in the use of water and horsepower while optimizing the number and placement of hydraulic fractures. In addition, EcoFrac Solutions will include FracRock's proprietary Geo-Predict package followed later in the development cycle by its Geo-Iteration methodology. Over time FracRock believes these proprietary technologies will help our customers more accurately target the optimal areas of the formation while minimizing the number of stages required to obtain the desired production. In addition, FracRock has formed alliances with highly skilled partners that will be able to provide a full suite of unconventional "green" technologies to operators working in Argentina and other international markets.
Bjarte Bruheim, the Company's executive chairman, stated, "Argentina has been a focal point for FracRock International since the Company's formation and we are excited about securing such a meaningful agreement in such a short period of time. We believe the 20+ billion barrel opportunity in Argentina is just too big for the world's leading oil and gas operators to ignore. FracRock is continuing to evaluate other business opportunities in Argentina and we are hopeful that major investments into the development of the Vaca Muerta play will continue to be announced over the coming months. If our customers are prepared to make significant investments in Argentina, we believe that such announcements will signal that the risk in Argentina is manageable."
The Company's Chief Executive Officer, J. Christopher Boswell, added, "We are extremely pleased to have secured such a significant milestone. The confidence our customer has demonstrated in our experience and capabilities speaks to the Company's assimilation of oilfield technologies which we have packaged together to provide a unique offering to our customers in Argentina. As unconventional plays begin to be developed around the world, the experiences from operators in North America will allow governments and operators alike to start the field development at a high level on the learning curve. FracRock expects to be a leader at identifying and packaging the very best technologies from North America and deploying those technologies in the international markets. We have already assembled a powerful alliance of technology partners to achieve this objective and will continue to add new technologies going forward."
About the Company
FracRock International, Inc., a British Virgin Islands company, is an environmentally conscious oilfield service and technology company focused on providing the latest well stimulation and completion techniques to international unconventional markets currently being developed. Through the Company's unique EcoFrac Solutions, FracRock and its partners will deliver more "ecologically friendly" well stimulation services expected to be in high demand worldwide.
Website: http://www.fracrockintl.com
Recommended Reading
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Marketed: Stone Hill Minerals Holdings 95 Well Package in Colorado
2024-02-28 - Stone Hill Minerals Holdings has retained EnergyNet for the sale of a D-J Basin 95 well package in Weld County, Colorado.