Atlas Sand Company Announces Plan to Locally Supply the Permian Basin with 12 Million Tons per Year of High-Quality Frac Sand
AUSTIN, Texas, Dec. 19, 2017 /PRNewswire/ -- Atlas Sand Company, LLC ("Atlas," "Atlas Sand," or the "Company") is pleased to announce its plan to locally supply the Permian Basin with 12 million tons per year of high-quality frac sand including a 40/70 and 100 mesh size product.
Atlas has commenced construction on its first two plants. The Company's Kermit plant is expected to achieve first production during the second quarter 2018 and the Monahans plant is anticipated to begin production in the third quarter 2018.
Key Highlights
-- Founded by Ben M. "Bud" Brigham, who previously founded Brigham
Exploration Company, which sold to Statoil in 2011 for $4.7 billion, and
Brigham Resources, which sold to Diamondback Energy for $2.55 billion in
early 2017, Atlas represents the latest of Mr. Brigham's long-running
and highly successful oil & gas related ventures.
-- Atlas is the only native Permian sand producer, organically funded by
independent private investors with substantial experience and industry
relationships with Permian operators and service providers, as a pure
play West Texas frac sand producer.
-- Atlas does not own legacy assets in other regions that are vulnerable to
the Permian sand disruption.
-- Atlas controls approximately 6,000 acres or 60% of the Kermit dune and
approximately 8,500 acres or 100% of the Monahans dune with the
exception of the state park. Additionally, Atlas holds approximately
23,500 acres of off-dune buried sand proximal to the open dune.
-- By acquiring the vast majority of the two giant open dunes in the
Permian sand fairway, the Company believes it owns the largest and
highest quality tier one frac sand reserves in the Permian. Modern open
dunes have benefitted from thousands of years of additional geologic
winnowing and processing, and have not been subjected to the degree of
soil development, organics and impurities (which lowers yield) as the
buried sand deposits. As such, Atlas expects to be the lowest cost
producer of Permian frac sand.
-- By controlling the vast majority of the two giant open dunes at the
north and south ends of the Permian sand fairway, Atlas is logistically
advantaged to reach wellheads throughout the entirety of the Midland and
Delaware basins.
-- Atlas has excellent access to major thoroughfares in the Permian sand
fairway, with the Company's mine sites positioned close to I-20, TX-302,
TX-115 and TX-18, thereby greatly facilitating efficient sand
deliverability.
-- Atlas will provide high crush strength 40/70 and 100 mesh sand from both
dunes. The Company's 40/70 sand has a 7-8k crush rating and its 100 mesh
sand has a 10-12k crush rating, based on independent testing performed
by Proptester.
-- Atlas has received permit approval for the Kermit and Monahans sites
representing a combined total permitted nameplate capacity (i.e., input)
of approximately 8.8 million tons per year.
-- Consistent with Atlas' founders' long history of good stewardship of its
resources, Atlas has developed a minimal impact and conservation plan
and will continue to work closely with industry, local officials and
governmental agencies to instill best practices regarding long term
environmental sustainability in the West Texas sand trend.
-- By year end 2018, Atlas will have both the Kermit and Monahans plants
on-line with annual sand production potential (i.e., output) of 6
million tons per year, at full utilization. The Company plans to bring
on at least 12 million tons of total production potential in the Permian
Basin, possibly as early as the end of 2019, and could potentially
double that capacity to 24 million tons in 2020 or 2021. It is estimated
the Company has over a century worth of tier one sand reserves available
for expansion to reliably satisfy future demand.
Atlas Sand's Chairman and Founding Investor, Bud Brigham commented, "We're very excited to announce our plan to supply West Texas with the highest quality premium frac sand, which we believe is uniquely sourced from the giant modern open dunes, and which are logistically advantaged by their positions in Kermit and Monahans, Texas. We have assembled a great team and a dominant position in the basin, with unparalleled size and scalability. Our reserves are optimally located to serve a significant share of the robust activity in West Texas. Furthermore, the open dunes offer higher mining yields, which we believe positions Atlas as the provider of choice in the Permian. This is the best opportunity I have seen in my career in the energy sector. I could not be more excited to be leading and growing Atlas into the dominant sand provider serving the Permian Basin."
Atlas Sand's Top-Tier Management Team
In addition to Mr. Brigham, Atlas' management team includes several key individuals who bring significant experience in both the mining and exploration and production industries:
-- Hunter Wallace, COO
-- John Turner, CFO
-- Tim Stauffer, VP - Operations
-- Chris Scholla, VP - Supply Chain & Logistics
-- Kirk Ginn, VP - Human Resources
Hunter Wallace, COO, stated, "As we move towards first production, we're excited and encouraged by the high-quality individuals we've hired, and we continue to look for motivated individuals to join our team, both in Austin and in West Texas. Atlas Sand has combined the mindset of an E&P operator with some of the best talent in the mining industry to design the highest efficiency plants with unrivaled dependability. We believe our ability to consistently and reliably provide timely product deliveries day in and day out will set us apart and prove extremely important as the basin shifts towards regionally sourced sand. We also believe these same efficiency & dependability advantages provide a distinct benefit to our employees, and will make Atlas a more fulfilling and enjoyable place to work, which will be very important in this competitive hiring market."
John Turner, CFO, added, "It's special to be an organically founded and funded enterprise with a solid and very conservative balance sheet, the highest quality Permian sand reserves, state-of-the-art innovative plant designs, and a "Built to Last" mission. We look forward to partnering with our Permian brethren to further differentiate the Permian Basin in the worldwide oil and gas marketplace."
Website Launch
Atlas would like to invite interested parties to view our website, which is now live. Please visit www.atlassand.com for further details regarding our history, management's background, product offerings and specifications, sales information and employment opportunities.
About Atlas Sand
Atlas Sand was founded organically by long-time E&P operators with significant experience in the Permian Basin alongside the best talent available in the sand mining industry. The Company was formed to provide the oil & gas industry access to the largest, highest quality frac sand reserves located in the heart of the most prolific resource plays of West Texas, including our high crush strength 40/70 and 100 mesh products.
Contact
Corporate Headquarters Monahans Field Office
5914 West Courtyard Drive, Suite #200 223 West Sealy Road
Austin, Texas 78730 Monahans, Texas 79756
For media inquiries, please contact Brian Leveille at bleveille@atlassand.com or 512-220-1200
For employment opportunities, please contact Kirk Ginn at kginn@atlassand.com
For sales inquiries, please visit www.atlassand.com/sales-contact/
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SOURCE Atlas Sand Company
