HOUSTON, Jan. 23, 2014 (GLOBE NEWSWIRE) -- Eco-Stim Energy Solutions, Inc. (OTCBB: ESES ) ("EcoStim" or "the Company") announced today that it has completed the initial fiber optic recording on three of the four wells planned with one of Argentina's largest oil and gas exploration and production companies. This work relates to a contract signed in 2013 which involves the application of EcoStim's unique field management system. This system is expected to calibrate the Company's predictive 3D seismic modeling generated using its proprietary Geo-Predict SM technology (which has been utilized on over 350 shale wells in the United States) with real-time flow properties coming from a down-hole fiber optic monitoring system. Fiber optic data has been recorded from several producing wells located in the Vaca Muerta shale formation. The goal of this project is to identify flow property information from wells which have been producing for some time. We believe this data will help our customer better understand the reservoir characteristics and help optimize drilling and completion efforts on future wells.
In any given area, EcoStim builds a predictive model by using its proprietary Geo-Predict SM processing and interpretation methodology. EcoStim further refines its predictive model by adding local production characteristics, data obtained through core analysis and well logs combined with specific geometric features. These techniques are designed to identify "markers" that exist in the seismic information which indicate high probability production zones or "sweet spots". After obtaining flow property information from the down-hole diagnostic tools and correlating such information with the prediction, the Geo-Iteration SM process allows the predictive model to improve as more wells are drilled. Over time, this process slowly builds confidence in the Geo-Predict technology which then allows clients to design completion programs based on solid empirical data. This strategy ultimately permits a reduction in completion costs on subsequent wells by targeting well stimulation efforts in "sweet spot" zones which can lower costs without sacrificing production -- while also reducing the operation's environmental footprint.
As EcoStim President and CEO Chris Boswell explains, "EcoStim's management team believe that significant efficiencies can be achieved in unconventional plays through a reduction of completion costs based on the application of technology. We also believe that by combining the latest pressure-pumping and completion techniques with predictive geophysical and flow-property diagnostic tools, our proprietary "field management system" can help drive that process through a tightly bundled service offering -- particularly in new shale plays."
The fiber-optic cable and deployment equipment was shipped from Houston to Neuquén, Argentina in 2013, and field operations are expected to be completed under this contract at the end of this month. Based on the initial results from data recorded, the Company anticipates strong demand for this service in the future.
About the Company
Eco-Stim Energy Solutions is an environmentally-focused oilfield service and technology company providing proprietary field management technologies and well stimulation and completion services to oil and gas producers drilling in the rapidly expanding international unconventional shale market. EcoStim'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, EcoStim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions, surface footprint and water usage. EcoStim seeks to deliver well completion services with better technology, better ecology and significantly improved economics for unconventional oil and gas producers worldwide.
Forward-Looking Statements:
The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the "Risk Factors" section of the Company's 8-K filed with the Securities and Exchange Commission on December 17, 2013 and risks relating to expected continued development of fracturing operations and unconventional activity in Argentina, expected financial results for past and future periods; the effects of government regulation, permitting and other legal requirements, including new legislation or regulation of hydraulic fracturing; drilling and operating risks; the adequacy of our capital resources and liquidity including, but not limited to; difficult and adverse conditions in the domestic and global capital and credit markets; risks related to the concentration of our operations in the South America; shortages of oilfield and frac service equipment, services and qualified personnel and increases in costs for such equipment, services and personnel; uncertainties about our ability to successfully execute our business and financial plans and strategies; general economic and business conditions, either internationally or domestically or in the jurisdictions in which we operate; competition in the oil and natural gas industry; uncertainty concerning our assumed or possible future results of operations; our existing indebtedness; and other important factors that could cause actual results to differ materially from those projected.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Alexander Nickolatos, CFO 281-531-7200
