Frac Water Systems, who long ago decided to put their money where their mouth is and tackle the difficult problems of the booming oil and gas E&P sector by providing comprehensive and environmentally responsible water treatment services, announced another major step in the company’s evolution today, as word breaks from FWSI that extensive due diligence is now underway to vet three target candidates for the company’s first JV project.
A business model driven by production-oriented and extremely flexible system design/implementation, couched in a strategic framework that takes up a basin-wide approach to developing vendor agreements for water management (involving multiple E&Ps as well as water service providers), has put FWSI on the map in this industry and the recent tapping of 30 plus year industry veteran, Ms. Nadine C. Smith, to the CEO position in early October is a clear sign they are doubling down on growth. The previously announced guaranteed participatory interest in an initial project (Oct 10, JV with Colorado based Produced Water Solutions, Inc.), coupled with first right of refusal on two others, has led to a flurry of activity by the company’s management, which has been out spending tons of shoe leather during recent weeks in the target regions, shaking hands with area operators and really perusing the project targets thoroughly.
FWSI has even been meeting with potential local JV partners and requisite ancillary service providers, fully fleshing out the baselines for a comprehensive feasibility assessment on all three projects. All three targets being vetted feature high activity levels with basin-wide drilling underway and current rotary rig counts in three primary onshore basins tells the entire macro story, with some 223 in the Texas Eagleford, 177 in the North Dakota Williston/Bakken, and another 50 in the Denver-Julesburg Basin/Niobrara (as of Nov 15 according to the Baker Hughes data). These three basins alone account for nearly 25% of all U.S. onshore drilling activity right now. Having to choose out of a rich basket of project targets is the kind of problem you want to have as a water solutions firm like FWSI, whose client-tailored and modular approach, using a combination of Mobile Treatment Units and stationary Frac Water Depots, is the ideal solution for cost-effective, conscientious handling of flowback water, as well as the long-term separation and disposal needs for produced water generated over the life of a given well.
FWSI’s scalable end-to-end wastewater treatment solutions are designed to meet and even exceed environmental requirements imposed by government, as well as those occurring within the industry, or emanating from the public. This extremely proactive approach to the problem, using pre-configured mobile treatment technologies, is an exemplary combination of on-site processing technology with proximal depots and covers the gamut of pre- and post-drilling needs, while also easily allowing for regulatory updates due to its modularity.
President, as well as CEO of FWSI, Nadine Smith, whose executive, managerial and Board experience at some of the biggest early stage public and private companies that went on to dominate the sector, with market caps north of $2B like Patterson-UTI Energy and Gran Tierra Energy, noted that the guaranteed participatory interest under the JV and further options under the agreement are collectively very bullish for the company moving forward. Smith floated a Dec 9 date for initial project selection and reassured investors that FWSI would set about aggressively pursuing the additional option projects almost immediately thereafter. Smith also underscored the significant conventional and horizontal drilling throughout each basin in which all three projects are located, tipping her hat to markets about the obvious water requirements generated thereby in context of the company’s growth, asserting that the company’s proposed facilities under review possesses a unique ability to handle those needs with masterful finesse.
Smith will be hitting the industry with this and other info at the upcoming 4th Annual Shale Play Water Management Conference in Dallas, this Nov 19 to 20, perfect timing for her to showcase the company’s technology and garner strategic insights that will help FWSI navigate their growth trajectory better, as this conference draws in several senior managers from across the industry, as well as the decision-drivers in field management.
Learn more about Frac Water Systems, Inc. at www.FracWaterSystems.com
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