Mammoth Energy Services Closes Taylor Frac Deal

Mammoth Energy Services, Inc. announced that it closed the acquisitions of Sturgeon Acquisitions LLC, which includes Sturgeon’s wholly owned subsidiaries Taylor Frac LLC, Taylor Real Estate Investments LLC, South River Road LLC, Stingray Cementing LLC and Stingray Energy Services LLC for 7 million shares of Mammoth common stock on June 5, 2017.

Arty Straehla, chief executive officer, commented, “The acquisitions of Sturgeon, Stingray Cementing and Stingray Energy Services furthers our integrated offerings by bringing additional sand assets, cementing and a full suite of rental equipment under the Mammoth umbrella. The expansion of the Taylor Frac facility from 0.7 million tons per annum (Mtpa) to 1.75 Mtpa has begun and is expected to be completed by year-end, which will grow our collective sand processing capacity to nearly 4 million tons. We closed the acquisition of the Chieftain sand mine on May 26 and are in the process of hiring personnel with the expectation of restarting the dry plant in the coming weeks. Across the Mammoth portfolio, once at full capacity, we intend to utilize approximately half of our sand production in direct support of our pressure pumping operations with the remainder sold through potential contracted sales or into the spot market.”

Taylor Frac’s facilities include a wet and dry plant located on 393 acres in Taylor, Wis. As of Dec. 31, 2016, Taylor Frac had estimated proven reserves of 37 million tons of high quality Northern White Jordan Substrate frac sand, which meets or exceeds all API standards including solubility, turbidity, roundness, sphericity and crush resistance.

With approximately 73 percent of the reserves higher demand fine grades of 40/70 and 100 mesh, Taylor Frac is well positioned to support the shift to finer grade sands in today’s well completion recipes, the company said.

The previously announced expansion of Taylor Frac to 1.75 Mtpa (up from 0.7 Mtpa) is underway and expected to be completed by year-end 2017 at a cost of approximately $23 million. Taylor Frac’s facilities are located on the Canadian National Railway (CN), which provides low cost transportation into the Appalachian Basin (Utica, Marcellus) and Western Canada.

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