Eco-Stim Energy Solutions, Inc. announced today that it has been awarded a contract with one of the largest oil and gas operators in Argentina to provide well stimulation services in the province of Neuquén, Mendoza and Rio Negro. J. Chris Boswell, the Company's chief executive officer, explained: "This is a very significant step for our Company. Last year, our first year of operations, the Company's well stimulation fleet worked without a formal contract for this operator and as a result, the available jobs were sporadic, often required us to mobilize long distances, and resulted in a complicated administrative process. Although the contract in and of itself does not obligate the customer to award nor the Company to perform any specified amount of work, the formalization of this contract should allow us to achieve higher equipment utilization, facilitate working with asset managers in several provinces while improving payment procedures."
Miguel Di Vincenzo, the Company's Vice President of Sales & Technology, stated: "This is a major milestone for our team. We have been working for this customer for over one year but primarily only when other service providers were unavailable or unable to meet the job requirements. We have proven our service capability and are very excited to finally get this contract award. Having this contract in place will allow our well stimulation crews to work more regularly in the province of Mendoza, where much of our previous work was executed. It will also permit us to work without hesitation for the various asset managers in the other provinces."
Jorge Robles, the Company's Director of Sales for Argentina, added, "Our Company's objective has been to establish our market presence in Argentina, and to systematically add well stimulation capacity to undertake larger and more complex jobs in preparation for the development of the extensive unconventional oil and gas resources in the Vaca Muerta shale. This contract is critical for further establishing the operational track record which is necessary to participate in the growing unconventional market and we look forward to adding sufficient well stimulation capacity to handle all of the active markets in Argentina."
Boswell also commented, "I want to personally congratulate our sales, operations, technical and administrative teams for their hard work and dedication to this process. The finalization of this contract is even more impressive considering the recent reduction in the Argentina drilling rig count. We believe that larger E&P companies' operating in Argentina have now started to rotate their efforts from less productive vertical wells to longer, multi-stage horizontal wells and are increasingly realizing greater efficiencies that should reduce costs thus making the wells more economic. The oil and gas resource base in Argentina is estimated to be one of the leading unconventional oil and gas shale deposits in the world, and we expect the market for well stimulation services to be robust over the next 5-10 years. We believe we are positioning the Company to fully participate in that growth."
Source: Eco-Stim Energy Solutions, Inc.
Date: Apr 11, 2016