FracRock International Announces Strategic Joint Venture with Manek Energy
HOUSTON, TX, February 06, 2013 /24-7PressRelease/ -- FracRock International, Inc. ("FracRock or the Company") today announced that it has signed an agreement with Manek Energy LLC, an experienced oilfield service company based in Rockwall, Texas ("Manek"). Under the terms of the agreement, Manek will contribute a newly manufactured 40,500 horsepower hydraulic frac equipment package and a fully trained, experienced hydraulic fracturing crew to FracRock in exchange for an interest free convertible note. The note will be automatically convertible into shares of FrackRock upon the occurrence of certain events. The owners of Manek will also be entitled to FracRock Board representation. The agreement is conditioned upon the completion of a definitive agreement and certain terms and conditions. The parties expect to close the transaction within 60 days.
FracRock intends to deploy the equipment and crew to fulfill its obligations under the previously announced Memorandum of Understanding (MOU). Under the terms of the MOU, FracRock will provide its unique EcoFracSM Solutions which are eco-friendly methodologies to assist operators in developing the Vaca Muerta shale play in Argentina in an environmentally responsible manner.
As previously disclosed, FracRock's EcoFracSM Solutions combine a number of exploration and production technologies in a manner that allow for a significant reduction in the use of water and horsepower while optimizing the number and placement of hydraulic fractures. In addition, EcoFracSM Solutions will include FracRock's proprietary Geo-PredictSM package and ,later in the development cycle, its Geo-IterationSM methodology.
Over time, FracRock believes these proprietary technologies will help our customers more accurately target the optimal areas within a formation to minimize the number of stages required to obtain the desired production. In addition, FracRock has formed alliances with highly skilled partners that will be able to provide a full suite of unconventional "green" technologies to operators working in Argentina and other international markets.
Bjarte Bruheim, the Company's executive chairman, stated, "We are very excited to have reached an agreement with such a qualified and experienced oilfield service company. Manek's team has over seven years of experience completing thousands of stages on unconventional wells in the Marcellus, Eagle Ford, Barnett and Woodbine shale plays in the United States. The owners of Manek share our vision to create an internationally-focused, technology-based, independent, pressure-pumping company."
Ken Goggans, the owner of Manek stated, "The opportunities to expand Manek Energy's service market beyond North America and develop innovations in oilfield service with a partner like FracRock are compelling. Production and exploration companies worldwide are seeking best of breed partners and can now benefit from our combined expertise."
FracRock's Chief Executive Officer, J. Christopher Boswell, added "This agreement is an important step in the evolution of our Company. We visited with many North American based, pressure-pumping companies and the team at Manek stood out as the best partner for FracRock. They're very knowledgeable, experienced and dedicated to generating results for their clients. The owners of Manek also own and operate a successful E&P company, Richland Resources, and have expressed a willingness to share their valuable experience at drilling and completing economical shale wells in North America. It will be a pleasure to partner with such a competent team as we execute our international growth plans."
As unconventional plays begin to be developed around the world, the experiences from operators in North America will allow governments and operators alike to start the field development at a high level on the learning curve. FracRock expects to be a leader at identifying and packaging the very best technologies from North America and deploying those technologies in the international markets. We have already assembled a powerful alliance of technology partners to achieve this objective and will continue to add new technologies going forward."
FracRock International, Inc., a privately held British Virgin Islands company, is an environmentally conscious oilfield service and technology company focused on providing the latest well stimulation and completion techniques to international unconventional markets currently being developed. Through the Company's unique EcoFracSM Solutions, FracRock and its partners will deliver more "ecologically friendly" well stimulation services expected to be in high demand worldwide.
Manek Energy is a privately held oilfield Services Provider specializing in premium hydraulic fracturing services. Our management team has extensive industry experience providing completion services to a who's who of exploration and production ("E&P") companies around the world. Our model is based on the utilization of modern, high pressure-rated fracturing equipment that allows us to handle challenging geological environments, reduce operating costs and increase asset utilization.
Our experienced and professional team will run the hydraulic fracturing fleet contributed to FracRock. This fleet will consist of nine 2,500 brake horsepower ("BHP") "Quintuplex" hydraulic pumping units, yielding 2,250 hydraulic horsepower ("HHP") and nine 2,500 BHP "Destiny Triplex" hydraulic pumping units, yielding 2250 HHP, representing a total of 40,500 HHP. Our state of the art hydraulic fracturing units are rated at 15,000 psi or higher and are specially designed for the most complex and challenging hydraulic fracturing projects, which typically involve long lateral segments and multiple fracturing stages in high pressure formations, and we believe our units are among the highest specification units available in the market today.