Wednesday, March 1, 2017

Fracking Sand: Hi-Crush Acquires Permian Basin Sand -- March 1, 2017

This was posted earlier as part of long post, but this deserves its own post. Note how many wells can be fracked with this amount of sand:
Sand: Hi-Crush Partners to acquire Permian Basin Sand. Over at Aggman:
  • Permian Basin Sand Co; a 1,226-acre sand reserve with more than 55 million tons of sand
  • $275 million
  • largest acquisition ever for Hi-Crush
  • $275 million / 55 million tons = $5 / ton; retail $25 - $35 / ton
  • 55 million tons x 2000 lbs/ton = 110,000 million lbs / 10 million lbs (per frack) = 11,000 wells; at 5 million lbs/frack, 22,000 wells
  • will provide frack sand for drilling activity in West Texas
  • Hi-Crush has already sold out of sand in the first quarter of 2017 because of increased fracking activity
  • most of Hi-Crush: prior to acquisition, most of its existing sand reserves are Northern White sand from Wisconsin 
  • Google: Hi-Crush on the blog; quite interesting 

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