Rock Products

NOV 2014

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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ROCK products • NOVEMBER 2014 14 Companies are now pumping in as much as a trainload of frac sand into a single well to coax more oil and gas from shale rocks. But the shale rush, especially in Texas and North Dakota, coupled with a rail jam that began after last year's severe winter has resulted in shortage of sand at drilling sites. "We did experience some disruptions early in the third quar‐ ter, where work was delayed because we were waiting on sand deliveries," Halliburton's Chief Executive David Lesar said on the company's post‐earnings call. Halliburton has committed about $100 million this year to upgrade its in‐ frastructure to move frac sand. The company signed up 30 additional trucking companies this year to transport sand, said Jeffrey Miller, Halliburton's president. It has also opened a center in Houston to monitor supply and track its rail and trucking fleets. Halliburton is also buying more sand under contract, which it said helped shave 15‐20 percent off spot sand costs. Athabasca Minerals Banks on Firebag Frac Sand Project Athabasca Minerals Inc. is reporting record revenue and its second highest‐ever quarterly net income, mostly from the company's aggregates operations. The company also re‐ ported that it has received approval for the right to work and remove sand from Phase One of the Firebag Frac Sand Project from Alberta Environment and Sustainable Re‐ source Development. Athabasca is developing the Firebag frac sand deposit in order to supply frac sand to oil and gas customers in West‐ ern Canada. This deposit is strategically located north of Fort McMurray and is accessible by Highway 63. On Aug. 25, 2014, the corporation received permit approval from ESRD to develop Phase One of the Firebag Project. The corporation will continue to work on approvals for Phase Two of the Project consisting of a 420‐acre parcel of adjacent land. On Sept. 23, 2014, Athabasca filed a National Instrument 43‐101 (NI 43‐101) technical report advising of a 45‐mil‐ lion ton inferred resource estimate covering Phase One and Phase Two of the Firebag Project to a depth of 15 m. The corporation has retained Norwest Corp. to complete a Pre‐ liminary Economic Assessment with completion expected prior to the end of Q4 2014. President and CEO Dom Kriangkum stated, "We are pleased to see the demand for aggregates in the Fort McMurray re‐ gion increase during Q3 2014, and anticipate continuing strength during Q4 2014, when demand for aggregates is traditionally highest during the second half of the year. We have realized some significant recent success from imple‐ menting a number of cost reduction opportunities in ex‐ traction and processing that we targeted in the first half of 2014. Having received the Firebag Phase One permit ap‐ proval presents a great opportunity for the development of our frac sand for use by Western Canadian pressure pumpers. We await Firebag's Preliminary Economic As‐ sessment that we expect in Q4 2014, which will further val‐ idate the viability of the project." Wildcat Opens Ohio Facility Lakewood, Colo.‐based Wildcat Minerals opened a new frac sand and proppant‐transloading storage facility in Hannibal, Ohio. The expansion into this key unconventional play will allow the company to store more than 10,000 tons of prop‐ pants, receive barges and unit trains, and further enhance its position as a premier national materials handler of oilfield consumables. The Hannibal facility is fully operational and currently re‐ ceiving barges and shipments of frac sand and proppants. The site is also unit train capable. Wildcat's investment in this state‐of‐the‐art, world‐class loading facility increases the geographic footprint of the company and enhances its posi‐ tion as the nation's largest independent materials handler of oilfield consumables, including frac sand and proppants. Steve Herron, Wildcat's co‐founder and chairman, said the company is "very excited to open our first transloading ter‐ minal in Ohio and our first barge capable facility. Wildcat's expansion into the Utica further increases our national foot‐ print and allows us to assist our customers in lowering their costs to bring their products to the wellhead." John Vesco, chief executive officer, said, "We are pleased at the opportunities that have arisen from the Hannibal Termi‐ nal. This facility, with barge, manifest and unit train capabil‐ ities provides a unique value proposition for our customers." Wildcat Minerals currently operates 18 dry bulk and prop‐ pant‐storage facilities and fluids transloading terminals in 10 states.

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