This Week’s Market Buzz

  • According to Stratistics MRC, the global proppant market is estimated at $58.46 billion in 2015 and is expected to reach $143.46 billion by 2022 growing at a CAGR of 13.68 percent from 2015 to 2022. A shift towards alternative energy resources is the key factor favoring market growth. The increasing demand for energy and unconventional gas are the key drivers, whereas the high logistics cost is inhibiting proppant market growth. The future growth lies in potential explorable reserves. Frac sand is the leading segment accounting for around 86 percent of the market, while resin-coated proppants and ceramic proppants stand at around 14 percent. North America accounted for the highest market share as compared to other regions.

  • 92 Resources Corp. announced its plans to start mapping, sampling and drilling its Golden Frac Sand property near Golden in British Columbia, Canada. The company announced that it has expanded its Golden Frac Sand Property by almost 300 percent, adding 2,404 hectares to the original 808-hectare Zim Frac Property. The company believes that significant value can be unlocked to increase shareholder value as the property represents a significantly undervalued asset given its potential to host a large, high-quality frac sand deposit. “A domestic or western Canadian Frac Sand deposit with suitable quality would benefit from more advantageous transportation and exchange rate costs over foreign competitors. We believe these to be important factors in the recent takeover of the neighboring Moberly Silica Sand Mine, which is slated for production in third quarter of 2017,” said Adrian Lamoureux, president and CEO of 92 Resources.
  • Select Sands Corp. announced that its wholly-owned subsidiary, Select Sands America Corp., entered into a multiyear frac sand supply agreement with Liberty Oilfield Services, LLC of Denver. Initial rail shipments were completed in February 2017 and are anticipated to continue throughout 2017 with volumes expected to increase in 2018 and 2019 to surpass a total of 1 million tpy. The 40/70 and 100 mesh products to be supplied under the agreement will be sourced from the company’s facilities in Arkansas. Select Sands Corp. President and CEO Zig Vitols said, “Liberty Oil & Gas is a valued partner and we look forward to the continued supply of their proppant needs into the future. This agreement is another milestone in our strategy to optimally expand capacity and become a supplier to a diverse customer base.”

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