SCOTT, La., Sept. 12, 2011 (GLOBE NEWSWIRE) -- ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), an oil and gas services company offering analytical services and essential custom-blended oil and gas well chemicals which improve production yields and overall efficiencies, announced that growth in revenue from its new chemical delivery units used in the pumping of chemicals in the hydraulic fracturing (fracking) business is projected to exceed $9,000,000 over the next twelve months. This fracking revenue is in addition to its existing production petrochemical business. Since June of this year, revenues have exceeded $1,500,000 from the Company's current three units. Two additional units are currently being constructed and will be deployed during the fourth quarter of this year. The fleet size will rise to five units with the additions in the fourth quarter. The units pump chemicals to treat the fluids used in the completion of oil and gas wells from "shale" formations.
Each unit consists of a trailer mounted pumping system with associated power generation components, a chemical supply trailer, safety and spill prevention equipment, communication devices, and computerized reporting equipment. ESP Resources is currently supplying specialty chemicals and services to two of the largest independent oil and gas operators and is also negotiating contracts for the use of these units on a continuous basis. It is anticipated that the units will be used in the completion of wells in the Fayetteville Shale in Northern Arkansas. The Company's Guy, Arkansas office is located in the middle of the shale formation trend and can economically supply the chemical units to any of the 21 counties where drilling activity is currently ongoing.
Revenue generated by the Company from these units is projected to average over $200,000 per month per unit.
The units pump treatment chemicals to eliminate the bacteria contamination present in the fluids used in the fracking process. The Company has developed a specialized chemical formulation that provides for a longer term bacteria-contamination elimination time frame than what is currently supplied by its competitors. The longer term time frame provides the Company's customers significant cost savings in the removal treatment of contaminants from the oil and gas well-stream once the well has been placed into production. Potential savings via increased productivity can be substantial for the Company's customers.
"This new part of our business continues to be an exciting and integral part of our plans for expansion," stated David Dugas, Chief Executive Officer of ESP Resources. "We anticipate that with the deployment of these units during the fourth quarter, our revenue growth will be significantly impacted in 2011 and 2012," said Mr. Dugas.
About ESP Resources, Inc.:
ESP Resources, Inc. is a publicly-traded (OTCBB:ESPI) oil and gas services company offering analytical services and essential custom-blended oil and gas well chemicals which improve production yields and overall efficiencies. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma. The Company also distributes internationally through oil and gas service companies in other prolific oil and gas well regions throughout the world. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at www.espchem.com.
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.