Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) is an environmentally-focused oilfield services and technology company providing proprietary field management technologies and well stimulation and completion services to oil and gas producers in the international unconventional shale markets. Through a unique process designed to predict high probability production zones, the company offers its clients an opportunity to decrease the number of stages stimulated in shale plays, providing the means for dramatically reduced emissions, surface footprint and water usage. Led by a management team with well over a century of cumulative industry experience, Eco-Stim is currently looking to build upon the strong results of its first full quarter of operations.
In the first quarter of 2015, Eco-Stim initiated start-up field operations in Argentina, demonstrating the considerable progress made over the course of the previous three years. During the period, the company performed well stimulation jobs for three unique customers in four different provinces throughout the South American nation, achieving initial revenues of $2.9 million despite relatively low utilization figures. Moving forward, Eco-Stim expects these projects to serve as qualifiers for a collection of active operators in the region, providing a platform for dramatically increased revenue in the years to come.
“In January 2012, we formed this company with the specific goal of providing best-in-class oilfield services in undersupplied markets around the world,” J. Chris Boswell, president and chief executive officer of Eco-Stim, stated in a news release. “I am very proud of the outstanding team we have brought together in Argentina to make Eco-Stim a success. We have an excellent service record and one of the safest operations in the country.”
The company expects to increase its utilization capacity in the coming months by introducing a second well stimulation fleet to its current Argentina-based operations. Through this growth, Eco-Stim will be in a strengthened strategic position to capitalize on the forecast increases in drilling activity in the Vaca Muerta formation of Argentina’s Neuquén province, which is expected to rise despite slumping global oil prices. In April, prospective investors were given a preview of this potential production increase when a 45,000 barrel per day surge in shale output was ordered by the Argentine government in order to combat the country’s current energy deficit, according to Reuters.
In recent weeks, Eco-Stim has turned much of its focus toward securing the necessary capital to adequately expand its current operations. In June, the company announced a public offering of common stock shares that is expected to raise gross proceeds of up to $30 million. With these funds, Eco-Stim will secure its second pressure pumping fleet ahead of expanding its utilization capacity. For potential shareholders, the company’s rapidly growing position within one of the world’s most promising oil production regions makes it an intriguing investment opportunity.
For more information, visit www.ecostim-es.com
