Smart Sand, Inc. Announces New Bakken Frac Sand Transloading Terminal
March 16 2018 - 4:01PM
Smart Sand, Inc. (NASDAQ:SND) (the “Company”) announced today that
it acquired the rights to operate a unit train capable transloading
terminal in Van Hook, North Dakota to service the Bakken Formation.
The Company paid consideration of approximately $15.5 million to
acquire certain assets at the Van Hook terminal, and has entered
into a long-term lease agreement in connection with the
transaction. As part of this transaction, Smart Sand and Canadian
Pacific (TSX:CP) (NYSE:CP) have entered into a long-term agreement
to service Van Hook directly along with the other key oil and gas
exploration and production basins of North America. The
Company expects to have the Van Hook facility operational in April
2018.
“We are excited to partner with transportation
leader CP to offer our customers competitive, efficient rail
service for our Northern White Frac Sand to operating basins
throughout North America. In particular, our new unit train
capable terminal in Van Hook, North Dakota, allows us to continue
growing our presence in the Williston Basin,” stated Charles Young,
CEO of Smart Sand. “With our previously announced annual processing
capacity expansion from 3.3 million to 5.5 million tons, our
Oakdale, Wisconsin mining operation continues to deliver frac sand
in the quantities and with the efficient logistics needed to
support today’s higher-intensity finer mesh frac designs.
This agreement with CP is another step forward toward Smart Sand’s
goal of being an integrated mine to wellhead supplier of frac
sand.”
“CP is committed to working with its strategic
partners to drive sustainable growth in the frac sand market,” said
Coby Bullard, CP’s Vice-President Sales and Marketing, Merchandise
and Energy, Chemicals and Plastics. “Working with Smart Sand to
repurpose this existing rail facility into a high-efficiency sand
terminal is well-aligned with our commercial strategy to maximize
capacity and asset utilization. It capitalizes on our high-capacity
corridor between the nation’s premier proppant-producing region and
North Dakota’s Williston Basin.”
About Smart Sand:
Smart Sand is a pure-play, low-cost producer of
high-quality Northern White raw frac sand. We sell our products
primarily to oil and natural gas exploration and production
companies and oilfield service companies. We own and operate a raw
frac sand mine and processing facility near Oakdale, Wisconsin, at
which we currently have approximately 321 million tons of proven
recoverable reserves. We currently have 3.3 million tons of annual
processing capacity and are expanding our annual nameplate
processing capacity to 5.5 million tons. We expect to complete our
capacity expansion in the second quarter of 2018. For more
information, please visit www.smartsand.com.
Contact:
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
Phil CernigliaPhone: (281) 231-2660E-mail:
pcerniglia@smartsand.com
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