Select Sands Corp. said that its 100% owned subsidiary, Select Sands America Corp., has entered into a three-year supply agreement with a large cap exploration and production company in The Eagle Ford Basin. The contract is for the supply of Select Sands’ 100 mesh product.
Select Sands President and CEO, Zig Vitols remarked, “Our strategy of serving the Eagle Ford basin operators and pressure pumpers more efficiently with our new transload capabilities in George West, Texas, comes to fruition with the signing of this contract with this large cap exploration and production company. This supply agreement will provide Select Sands with guaranteed minimum purchases of our proppant while providing the operator with a reliable, high-quality proppant near their wells, providing them last mile cost savings. With the signing of this agreement, both companies ensure that high quality 100 mesh Northern White Sand will be used to achieve production results that successful exploration and production companies are aiming for. We are very pleased to announce this multi-year contract and look forward to commencing the supply of our sand in January 2020. We also remain focused on securing other potential opportunities across all the basins for our high quality Northern White Sand.”
Select Sands previously announced that the company will start transload operations in George West, Texas, in Live Oak County in January 2020. As a supplier of high-quality Northern White Sands, the proximity of its mine in Arkansas gives the company a distance advantage when compared to sources in the upper Midwest. Select Sands will be supplying its 100 mesh, 40/70 and 30/50 products from this location. With excess capacity, the facility may be used to transload for other proppant suppliers to the area.
The George West transload operations has a capacity for 180 rail cars and is equipped with two offload/loading stations with dedicated silos for a high throughput capacity.
With this transload, Select Sands is fully equipped to provide operators and pressure pumpers with transload capabilities to ensure an effective flow of product in their supply chain close to their well, ultimately providing last mile cost savings.