Eco-Stim Energy Solutions (“ESES”, “Eco-Stim”, or “Company”) is an environmentally focused oilfield service and technology company providing proprietary field management technologies, well stimulation, and completion services to oil and gas producers drilling in the rapidly expanding international unconventional shale markets. Eco-Stim’s proprietary methodology and technology offers the potential to decrease the number of stages stimulated in shale plays through a unique process that predicts high-probability production zones while confirming those production zones using the latest generation down-hole diagnostic tools. In addition, Eco-Stim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions, surface footprint, and water usage. Eco-Stim seeks to deliver well completion services with better technology, better ecology, and significantly improved economics for unconventional oil and gas producers worldwide.
ESES is currently providing well stimulation and completion services to oil and gas operators in Argentina, a country which contains one of the world’s largest shale oil and gas resources. With a pro-business and free market president elected, the government of Argentina has determined that the development of these vast resources is highest national priority and has established oil and gas prices that are well above current international pricing to attract continued investment. In addition to its work in Argentina, the company recently announced a contract award to begin operations in Oklahoma in 2Q17.
The Company currently has two crews successfully deployed in Argentina with 32,000 horsepower (HHP) of “ready to work” equipment. The expansion of operations in Oklahoma and the company’s presence in high oil price per barrel in Argentina has the potential to increase annual revenue run rate significantly. Five analysts have buy/outperform ratings on ESES, with target prices ranging between $4.00-$7.00
- Technology-driven oilfield services company focusing on fast-growing, higher-margin international shale operations in Argentina
- The Company currently has two crews in the field with 32,000 HHP giving the potential to triple annual revenue run rate
- Company operates in Vaca Muerta, one of the world’s largest and most active international shale opportunities
- Argentina government supports oil prices at $55/barrel and gas prices at $7.00/mcf
- YPF (Argentinian state-owned enterprise) is a key customer; YPF is expected to spend $37 billion in oil and gas exploration in Argentina over the next five years
- Significant projected increases in the drilling of unconventional wells provides a growing, long-term revenue opportunity for ESES
- Company expected to begin operations in Oklahoma with established US exploration and production company in 2Q17
- ESES’s proprietary technology gives operators a higher probability of drilling successful wells, at a lower overall cost in United States