Select Sands Corp (CVE:SNS) reported that its wholly-owned subsidiary unit, Select Sands America Corp., has finalized a multiyear frac sand supply deal with Liberty Oilfield Services, LLC. Preliminary rail shipments were closed in February, 2017 and are expected to continue in 2017 with volumes anticipated to grow in 2018 and 2019 to excel 1 million tons per year. The products to be offered under the deal will be sourced from the firm’s facilities in Arkansas.
The expert view
Zig Vitols, the President and CEO of Select Sands, commented that Liberty Oil & Gas is an esteemed associate and they look forward to the constant supply of their proppant requirements into the future. This deal is another achievement in their plan to optimally expand capacity and turn a supplier to a diverse client base.
Select Sands is an industrial silica product firm advancing its Tier-1, silica sands assignment located in Arkansas. This asset has a significant logistical benefit of being almost 650 rail-miles closer to gas and oil markets sited in Oklahoma, New Mexico, Louisiana and Texas.
Earlier to this update, Select Sands reported that its wholly-owned subsidiary firm American Select Corp. has closed the procurement of an additional 457 acres of asset almost 3 miles from Sandtown location. Mentioned as the Bell Farm, the firm considers that the property is triggered by the St. Peters formation depending on certain information accessible to the firm and data in the public domain.
As per update, the St. Peter Sandstone formation is a means of Northern White, Tier-1 frac sand. The firm intends to do further work to assess the quantity and quality of sand, if any, seen within the property boundary. It is not able to validate at this time whether this asset will have an economically workable amount of sand. Select Sands reported that the total purchase price was almost USD$950,560 which also comprised agent’s fees of USD$36,560.