Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) is an environmentally focused oilfield service and
technology company providing well stimulation and completion services and
proprietary field management technologies to oil and gas producers. On news of a new contract, ESES’ price saw a
48% increase. They started January 30 at
$.80, and ended at a solid $2.00. On
average, 170,000 shares trade, but today the company saw over 20,000,000 shares
trade hands.
The company has executed a one-year
contract, with an option for a second year, with a well-capitalized and
established US exploration and production company expanding its pressure
pumping operations into one of the fastest growing and most active oil and gas
regions in Oklahoma. The company expects that the work to be performed under
this contract should provide a solid entry into this region, with the option to
grow and allow the Company to generate positive cash flow with attractive
returns.
ESES CEO Chris Boswell said, “We
have said for some time that we would not enter the U.S. pressure pumping
market without some type of technology advantage, a contract and better market
conditions. We now believe we have met these criteria and while the work
contemplated under this contract is not expected to be executed solely with the
TPU technology, we will utilize this equipment as part of the service offering.
In addition, we believe that this region is poised for significant growth and
this contract will position the Company in an attractive region with an anchor
customer.”
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