DENVER, CO--(Marketwire - Dec 19, 2012) - ENSERVCO Corporation (
Eastern Ohio is one of ENSERVCO's newest operating regions, and the latest customers, which include four of the five largest operators in the Utica, represent a significant incremental growth opportunity. Recent studies by Ohio's Department of Natural Resources suggest the Utica Shale has the potential to become one of the United States' most prolific oil and gas plays, and could ultimately generate up to 5.5 billion barrels of oil and 15.7 trillion cubic feet of natural gas production, assuming a 5% rate of recovery. Several exploration and production companies have announced aggressive development programs for the Utica, including Gulfport Energy, which recently said it has budgeted $215 million to $225 million for drilling activities during 2013 alone.
Rick Kasch, president and CFO, said, "We expect to see consistent demand for our core fluid heating services in this region throughout the fall, winter and spring, as hydraulic fracturing techniques in the Utica generally require frac water to be approximately 65 to 70 degrees Fahrenheit. Average monthly temperatures in eastern Ohio reach this level for only three or four months a year.
"In addition to our early mover advantage in the region, our modern equipment fleet and reputation for outstanding service position us to benefit from the anticipated long-term production growth associated with this field," Kasch added.
The Company currently is serving the Utica Shale region out of its Carmichaels, PA operations center, which opened in 2010.
Kasch noted that ENSERVCO also will soon commence frac-heating services for one of the largest exploration and production companies targeting the burgeoning Mississippi Lime formation in southern Kansas. The operator is already utilizing ENSERVCO's water hauling, pressure testing and well acidizing services.
ENSERVCO also announced it recently commissioned the fabrication of several next-generation, double-burner heating units (include picture) that are expected to collectively increase the Company's frac heating capacity by approximately 50%. When completed, ENSERVCO expects to deploy the units primarily in the Company's Rocky Mountain and Northeastern U.S. service territories -- regions abundant in oil and natural gas liquids. All units are expected to be operational by the first quarter of 2013.
Through its various operating subsidiaries, ENSERVCO has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 245 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. For more information, please visit the company's website at www.enservco.com.
This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in a Form 10-K filed on March 30, 2012. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.
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