Eco-Stim Energy Solutions Provides Update on Various Contract Opportunities
December 28 2016 - 6:00AM
Marketwired
Eco-Stim Energy Solutions Provides Update on Various Contract
Opportunities
HOUSTON, TX-(Marketwired - Dec 28, 2016) - "EcoStim" or the
"Company" (NASDAQ: ESES), is providing a brief update on the status
of various contract opportunities as communicated in the Company's
most recent conference call in mid-November. At that time, the
Company had submitted bids and proposals for Argentina-related
contracts valued at over $75 million for work in 2017 and beyond.
Based on customer indications, we had expected the awards for much
of this work to be finalized before the end of 2016. However, the
final outcome of these bids has not been concluded within the time
frame previously expected.
The Company has been informed that the award notification on two
of the key contract opportunities has been delayed until mid to
late January 2017. In the interim, the Company is continuing to
work for this client under the previous rotational on-call
contracts which have now been extended into January. With respect
to the unconventional project the Company was pursuing for 2017,
the Company has received indications informally that the work will
likely be awarded to a competitor primarily because the Company
lacks the necessary pumping horsepower readily available in the
country to execute the work.
In addition to the Argentina opportunities discussed on our
conference call, the Company has also been evaluating two contract
opportunities in West Texas. One of these contract opportunities
progressed to a fully negotiated and signed letter of intent
("LOI") for a one year take or pay contract with an estimated
annual value of $71 million. Unfortunately, the private equity
backed E&P company we worked with on this agreement announced
on December 14, 2016 that their properties in West Texas were being
sold. Subsequently, we were informed that the acquiring company did
not wish to proceed to the contract stage and therefore discussions
were terminated. The second opportunity that we identified is still
under consideration and we have recently become aware of additional
opportunities in the United States which we are further
evaluating.
J. Chris Boswell, EcoStim's President and Chief Executive
Officer commented, "It is frustrating to experience delays in the
award of these contracts but we understand that our clients have
many priorities and we can only wait until they have concluded
their respective reviews of the tenders submitted. We continue to
believe that our offers are very competitive and remain confident
that we will be awarded some of the proposed work for next year.
With respect to West Texas, we were very pleased to have reached
operational and financial terms with a high-quality company to
potentially expand our operations into a rapidly growing West Texas
market. However, as has happened many times in West Texas, our
customer decided to sell their assets to a larger company who
unfortunately had long established relationships with other service
providers. This experience was a good exercise for the Company and
we are now actively looking at other similar opportunities in West
Texas and other resurging markets for possible expansion into the
United States. I would like to thank everyone for their patience
and we look forward to an improved 2017."
About the Company Eco-Stim Energy Solutions is an
environmentally focused oilfield service and technology Company
providing proprietary field management technologies and well
stimulation and completion services to oil and gas producers
drilling internationally. 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 oil and gas producers worldwide.
Forward-Looking Statements
Certain statements and information in this press release
concerning results for the fiscal period ended September 30, 2016
may constitute "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. Our forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause actual results to differ
materially from our historical experience and our present
expectations or projections.
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, please see our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
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.
Contact: Jeffrey Freedman Investor Relations
investorrelations@ecostim-es.com 281-531-7200