Eco-Stim Energy Solutions Provides Operational Update
June 26 2017 - 5:54PM
Marketwired
Eco-Stim Energy Solutions Provides Operational Update
HOUSTON, TX and NEUQUEN CITY, ARGENTINA-(Marketwired - Jun 26,
2017) - Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) ("EcoStim"
or the "Company") announced today that it has now completed four
wells under its contract in Oklahoma and nearly completed its first
full quarter under a two-year contract in Argentina. As a result of
the Company's increased utilization in both geographic markets,
EcoStim expects its revenue in the second quarter of 2017 to be
within a range from $8.4 million to $9.6 million, compared to $2.6
million for first quarter of 2017. Further, management believes
that its revenues for June, 2017, the first full month with
activity in both of its geographic markets, should exceed $4
million. The Company's well stimulation crew in Argentina is
expected to execute over 55 well stimulation stages during the
second quarter of 2017, compared to 17 stages in the first quarter
of 2017. The Company's well stimulation crew in Oklahoma is
expected to execute more than 90 well stimulation stages in the
second quarter of 2017, following the start-up of operations in
late May, 2017, compared to zero stages in the first quarter of
2017. The Company's turbine powered pumping system has been
performing consistent with the Company's operational expectations
while being fueled with compressed natural gas.
The Company's revenues in any fiscal quarter are significantly
impacted by its customers' drilling and completion activities,
which in turn are significantly dependent on commodity prices. If
the Company's customers in Argentina and Oklahoma continue their
current drilling and completion activities and the Company's
operational performance remains in line with the criteria set forth
in its contracts, the Company believes that revenues in the third
quarter of 2017 will increase over the second quarter. In
Argentina, the Company's expected revenue is supported by a
two-year contract that commenced on April 1, 2017 while the
expected revenue in Oklahoma is supported by a one-year contract
that commenced on May 23, 2017. As previously disclosed, our
contract in Argentina has certain take or pay features, while our
contract in Oklahoma is an exclusivity contract that provides the
Company with the opportunity to service the customer's completion
activities in a defined region, but does not restrict the customer
from curtailing its drilling plans.
At the shareholder meeting on June 16, 2017, the Company's
shareholders authorized the conversion of our convertible debt into
common stock. As a result of that conversion, the Company no longer
has any outstanding long-term debt.
J. Chris Boswell, EcoStim's President and Chief Executive
Officer commented, "Our 2017 growth has been a tremendous team
effort, enabling us to achieve success in both of our markets. I
would like to express my thanks to our team in Argentina for their
hard work as well as congratulate our team in Oklahoma for a very
strong start-up. I am very pleased to report that for the first
time since the Company's first well stimulation job was completed
in December 2014, we are working under two significant contracts
that provide management with enhanced financial and operational
visibility. We remain focused on our goal of enhancing our
strategic position in both geographical markets through new
customer contracts and expansion of capacity."
About Eco-Stim Energy Solutions, Inc. EcoStim 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
methodology and technology offer the potential in high cost regions
to decrease the number of stages stimulated in shale plays through
a 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.
Forward-Looking Statements:
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. In addition, many of the forward-looking
statements in this press release are substantially dependent upon
our customers continuing to maintain their current drilling plans,
which will depend upon our customers' financial condition, their
response to change in commodity prices and other factors that are
outside of our control. As referenced above, our contract in
Argentina has certain take or pay features, while our customer in
Oklahoma is under no obligation to continue to use our services
under our contract and has no payment obligations to us in the
event that our customer curtails its drilling plans.
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.
Contact: Jeffrey Freedman Investor Relations
investorrelations@ecostim-es.com 281-531-7200