CALGARY, ALBERTA -- (Marketwired) -- 09/10/14 -- GASFRAC Energy Services Inc. (GASFRAC) (TSX: GFS), with headquarters in Calgary and operations in Alberta and Texas, today announced the signing of a two year contract with BlackBrush Oil and Gas, L.P. (BlackBrush) to provide fracturing services in South Texas. The contract provides for a minimum commitment to GASFRAC of $7.2 million annually, with upside in economics as activity reaches BlackBrush's target levels. BlackBrush is expected to drill 24 new wells annually in the prolific San Miguel Formation, Maverick Basin, South Texas.
"We are very pleased to deepen our relationship with the team at BlackBrush following the excellent field results we have achieved together in the San Miguel Formation. Deploying GASFRAC's HOOD(i) technology on several wells, BlackBrush hopes to deploy even larger fracs with substantially better results," said Jason Munro, GASFRAC's President. "In addition, the use of infield hydrocarbons with High Reid Vapor Pressure (HRVP)(i) eliminated the need for supplement frac oils, resulting in a per well cost that is competitive to that of conventional water fracturing."
Added Munro, "This contract represents the initial phases of GASFRAC's strategic turnaround and complements our effort to become a leading provider of fracturing services in North America, utilizing conventional, energized and waterless fluid solutions."
In Canada, GASFRAC has commenced waterless fracturing operations in New Brunswick with Corridor Resources Inc. and is expected to complete operations in the next few weeks. The company also reports successful completion of several conventional treatments including Poly CO2, Nitrified slickwater and gelled water jobs in Alberta.
About GASFRAC Energy Services Inc.
GASFRAC Energy Services Inc. is an innovative North American based well-fracturing company that recently expanded its fluid offerings to include conventional fluids, in addition to a complete range of energized and waterless fluid solutions. GASFRAC offers a full complement of fracturing services and consulting expertise, while focusing on providing innovative fracturing solutions for our clients.
About BlackBrush Oil and Gas, L.P.
BlackBrush, founded in 2004, is an independent oil and gas exploration and development company headquartered in San Antonio, Texas with over 75 employees. BlackBrush currently operates over 300 oil and gas wells on 160,000 net (360,000 gross) acres extensively throughout South Texas. BlackBrush expects to drill 50 wells over the next year with a capital program in excess of $200 million.
The Vapor Hood is a proprietary (To GASFRAC) technology that is used in conjunction with GASFRAC's conventional blender. The HOOD is the only solution available to pump high reid vapor pressure fluids above the IRP-8, 2.0 psi. The HOOD is capable of pumping a HRVP of 10 psi.
High Reid Vapor Pressure (HRVP):
RVP is the vapor pressure of gasoline measured at 100 degrees Fahrenheit. Fuels with higher RVP evaporate more easily than those with lower RVP. A particular fuel blend's RVP is based on the combined RVP of the ingredients that make up the blend.
GASFRAC Energy Services Inc.