Hallador Energy Co., a Denver-based coal development and transportation-delivery company, is breaking into the frac sand business.
In February, Hallador invested $4 million in Hourglass Sands LLC, a frac sand mining company in Colorado. Hourglass Sands currently controls a permitted sand reserve near Colorado Springs, Colo.
The company expects to truck test shipments to customers in the DJ Basin this summer. The company said it believes it controls the only permitted frac sand mine in Colorado.
“We believe this investment brings diversification and growth opportunities to our company and shareholders by capitalizing on the shale boom in the United States, while complementing our core coal business. We do not anticipate Hourglass Sands to be profitable in 2018, but are excited about its growth potential in future years,” said Brent Bilsland, president and CEO of Hallador Energy.