Sales contract secures proppant supply for oilfield service companies
CALGARY, AB, September 11, 2014 — Source Energy Services LP, (“Source Energy”), announced today the entry into a long-term proppant supply agreement with Canyon Services Group Inc. (“Canyon”), an oilfield service company providing hydraulic fracturing and other well-stimulation services, to oil and natural gas producers across Western Canada. The supply agreement sees Canyon securing a set volume of Source White frac sand in order to supply its Canadian fracturing services operations.
“Source Energy Services is excited to enter into this long-term partnership with Canyon,” said Brad Thomson, Chief Executive Officer of Source Energy. “We’re confident that our Wisconsin production facility and our extensive distribution network will allow us to provide a level of service to Canyon that they haven’t been able to receive before.”
“Canyon is built around developing strong partnerships,” says Brad Fedora, CEO, Canyon Services Group. “The high quality of proppant, along with the distribution network to get the proppant where we need it, is critical to our business. Source Energy is working with us to solve this supply issue.”
“Industry research shows that frac sand demand could double by 2016,” says Thomson. “It’s important that we work with our partners like Canyon to find solutions to both the supply and distribution challenge in Canada.”
About Source Energy Services
Source Energy Services is a private limited partnership that is an integrated supplier and distributor of high quality proppants in Canada and the United States. Source produces a high-quality monocrystalline silica sand, Source White, from its Sumner and Weyerhaeuser facilities in Wisconsin. The Source Energy Services distribution network is one of the most extensive frac sand distribution networks in North America, with a number of terminals in the WCSB and the Eagle Ford. For more information visit www.SourceEnergyServices.com
About Canyon Service Group Inc.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO2, to oil and natural gas producers developing a variety of plays. Headquartered in Calgary, Alberta, Canyon services customers from five operating bases situated in Western Canada’s most active well drilling and completions areas. For more information visit http://www.canyontech.ca.
Some of the information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements give our current expectations, and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “could,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. You are cautioned not to place undue reliance on any forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: the volume of frac sand we are able to sell; changes in the demand for frac sand; changes in prevailing economic conditions, or, changes in ability to transport frac sand. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Source Energy Services forward-looking statements speak only as of the date made and Source Energy Services undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Leslie Stempfle | Source Energy Services
Communications & Marketing Manager
(403) 262-1312 Ext. 231
Brad Fedora | Canyon Services Group Inc.
President and CEO