CALGARY, ALBERTA--(Marketwire - Feb. 28, 2012) - GASFRAC Energy Services, Inc ("GASFRAC") (TSX:GFS.TO - News) has entered into a two year contract with BlackBrush Oil and Gas, L.P. ("BlackBrush") for the provision of GASFRAC's proprietary waterless LPG stimulation process in the Carrizo Springs area of the Eagle Ford formation. BlackBrush has over 900 drillable locations for Eagle Ford and other oil zones in this area.
BlackBrush was one of the first oil and gas production companies to use GASFRAC's stimulation technology when GASFRAC expanded into the U.S. in mid-2011. After realizing positive production results from wells employing the GASFRAC fracturing technology, BlackBrush has agreed to a longer-term partnership in order to secure GASFRAC equipment as demand for the technology grows.
"We are thrilled to enter into a partnership with a company like BlackBrush who are true innovators in the industry," said Zeke Zeringue, Chief Executive Officer of GASFRAC. "Their commitment to deploy GASFRAC's proprietary technology validates the superior reservoir results and environmental performance that we offer to our customers. This agreement builds our business substantially in the Eagle Ford area of Texas, a region where we see tremendous growth potential for GASFRAC."
Phil Mezey, Co-CEO at BlackBrush, is excited to announce this new partnership with GASFRAC, as "BlackBrush looked extensively for an alternative to "water fracs" as we recognized a definite problem in formation damage contributed by introducing water in the fracing process to the formations we are actively developing. Results from our first well with GASFRAC has seen oil production at a sustainable rate weeks earlier than with the standard water frac and we are seeing huge savings on disposal of frac fluids."
GASFRAC is in the process of opening a major operations hub in the San Antonio area to help facilitate the growth and expansion of its business in South Texas.
BlackBrush Oil & Gas, L.P. is a San Antonio-based oil and gas exploration and development company with a solid track record of value creation and is constantly acquiring quality upstream assets. An active operator in South Texas with over 130,000 acres and operating over 300 wells, two drilling rigs owned by affiliate companies, one workover rig owned by an affiliate company and operating over 80 miles of pipeline.
GASFRAC Energy Services, Inc is an oil and gas technology and service company headquartered in Calgary, Alberta and the sole provider of waterless gelled LPG fracturing technology in North America.
This press release contains certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and we do not undertake to publicly update these forward looking statements except in accordance with applicable securities laws. Forward-looking statements are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services. Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth under the section entitled "Business Risks" in the Company's MD&A.
GASFRAC Energy Services, Inc
Chief Financial Officer