SCOTT, La., Jan. 20, 2011 (GLOBE NEWSWIRE) -- ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), a manufacturer, blender, distributor, and marketer of specialty chemicals and analytical services to the oil and gas industry, provided an update to the previously announced expansion of chemical products and services to a major operator in the Eagle Ford Shale. The operator is EFS Midstream, LLC ("EFS Midstream"), a subsidiary of Pioneer Natural Resources Company ("Pioneer"). Pioneer is a major independent exploration and production company in the Eagle Ford Shale, whose lease acreage covers in excess of 300,000 acres.
ESP Resources began supplying processing chemicals to EFS Midstream in October of last year for the newly completed Eagle Ford Shale wells. The operator currently operates seven rigs that are drilling wells in the Eagle Ford Shale with plans to double the drilling fleet during 2011. ESP Resources currently supplies several groups of production chemicals to eight wells which the operator has completed in the last four months of 2010. In addition, the Company provides gas processing and condensate stabilization chemicals to the operator's central gathering plants. The operator plans to drill in excess of 1,000 wells flowing through 200 point of delivery systems. Production chemical sales to EFS Midstream contributed to a 120% increase in sales in the South Texas district located in Mission, TX for the Company during the fourth quarter of 2010.
"We have increased sales to EFS Midstream and Pioneer significantly in the fourth quarter of 2010 and anticipate further revenue increases in 2011 based upon the number of new well completions in progress today," stated David Dugas, President of ESP Resources. "Through the expanded use of our chemicals and services, this operator and other operators we supply are able to achieve more predictable and effective production techniques. We have increased sales to this customer in excess of 100% during the fourth quarter of 2010 and expect to continue sales increases through 2011. This is based upon the projections received from the activity at EFS Midstream," Dugas stated.
About Pioneer Natural Resources Company:
Pioneer is a large independent exploration and production company focused on delivering competitive and sustainable results. Pioneer responsibly produces oil and gas resources to help meet the world's energy demands as it provides opportunities for growth and enrichment to employees, business partners and the communities in which the Company operates. With a long-lived foundation of onshore U.S. properties providing stability and steady growth, Pioneer is pursuing several emerging resource plays in the Lower 48. In Alaska, the Company is the first independent to produce oil on the North Slope with its Oooguruk project. Pioneer also has operations in Tunisia and South Africa and is considered a top-tier, independent exploration and production company with approximately $1.9 billion in annual sales.
About .:
ESP Resources, Inc. is a publicly-traded petrochemical company (OTCBB:ESPI) headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. ESP Resources supplies retail and wholesale specialty chemicals for a variety of oil field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The wholesale division of the Company supplies specialty chemicals to several retailers operating in West Africa. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's website at .
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.
CONTACT: David Dugas, President ESP Resources, Inc. david.dugas@espchem.com (337) 706-7056