Scott-based ESP Resources Inc., which provides chemicals used to improve production in oil and gas wells, announced that it expects more than $9 million in revenue over the next 12 months from new chemical delivery units used in the hydraulic fracturing business.
The fracking revenue will be added to the company’s existing production petrochemical business. Since June, ESP said, its three chemical delivery units have generated more than $1.5 million in revenue.
Two additional units are under construction and will begin operating during the fourth quarter. Two additional units are currently being constructed and will be deployed during the fourth quarter of this year. The units pump treatment chemicals that kill bacteria in the fluids used in the fracking process in “shale” formation wells.
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.
Each unit is expected to average more than $200,000 in monthly revenue.