We are a Houston, Texas based Oilfield Services company with operations in Texas, Oklahoma, Ohio and West Virginia. The Company has positioned itself to take advantage of the significant anticipated growth in horizontal drilling and hydraulic fracturing within the United States’ active shale and unconventional “tight oil” plays. New technologies in horizontal drilling and its related hydraulic fracturing “fracing” have produced a renaissance of activity in the domestic United States. Most of our activity is in Texas and Oklahoma, where typically more than half of U.S. oilfield activity takes place.
The Company’s current customers are mostly oilfield operators that range from large oil and gas companies to well capitalized rapidly growing independent operators. Relationships are the basis of how we obtain, keep and grow our business. We “earn our keep” every day. In most all cases, long term agreements are not awarded to service companies like ours, therefore, our operations are closely aligned with our customer’s expectations for performance and service. The trust that we develop with our customers for these critical service areas is paramount to our company.
Our competition is traditionally other oilfield service companies that are focused in water transfer, portable power or contract safety businesses. We don’t traditionally compete with companies that perform the frac jobs themselves, such as the Halliburton, Schlumberger or Baker Hughes, sometimes referred to as the “Big 3”. As discussed further below, as an example we transfer the frac water in coordination with, and received by, the Big 3 for them to do the frac, while being hired by the oil company operator.
Our Water Division
The Company’s Water Division is comprised of three operating subsidiaries: AES Water Solutions, AquaTex and Hamilton Water Transfer. Its Water Division provides above ground temporary pipe or lay flat hose infrastructure from a water source such as a river or a pond to a frac site – usually into tanks for frac companies to perform the completion work. Significant transportation costs of trucking water to frac sites makes the above ground pipe and hose services more cost effective in most cases. In our experience, horizontal multi-stage fracs today typically require up to 10 million gallons of water – making water a critical part of these operations.
Through our Water Division, we also provide Flow Back services which are required after a frac is completed. We install our flow Back equipment to the wellhead to manage and direct high temperature and high pressure water and other fluids and gases as well as separate the gas and sand that gets produced with flow back effluent. Flare stacks are also used in some cases during the first few weeks until permanent flow lines and storage tanks are in place. This Flow Back process typically lasts three to four weeks, but it can last longer.
In addition to Water Transfer and Flow Back services, the Water Division offers high volume Onsite Recycling of produced water. This technology cleans up to 20,000 barrels of produced water per day with a footprint of two or three frac tank size containers and attached related equipment.