(Source: )Īccording to Brandon Dobell (2016), an oil and gas analyst at William Blair, overall sand usage should rise even if oil prices stay within a range of $40-$60/barrel, because drillers are now using 2-3 times more sand per well than they did 3 years ago. Grains in this image are about 0.5 mm in size. It is also a very tough material that can resist compressive forces of up to several tons per square inch. Notice how the frac sand has a more uniform grain size, nicely rounded grain shapes, and a uniform composition. The sand grains have to be round as if they are angular they will crush on the pressure and cause inefficiencies.Ĭlose-up view of typical frac sand (on the right) and ordinary sand of similar grain size (on the left). This process puts an immense pressure on the tiny grains of sand, the reason why the industry has high specifications for this sand. The sand wedges into cracks and keeps them open so that the hydrocarbons can be pumped out. To get the gas, producers must shoot tonnes of water and sand down a well while fracking fluids split open rocks to release trapped oil and gas. Those 2 fields alone may host as much as 300 trillion cubic feet of gas. To improve their independence from the US market, domestic frac sand source must get identified and developed, ideally near Canada’s large shale gas basins in British Columbia, Alberta or Saskatchewan.īy 2020, the Horn River and Montney Basins in northeastern British Columbia are projected to produce around 6 billion cubic feet of natural gas per day and meeting somewhere between 25-33% of Canada’s demand. With oil prices and rig counts down significantly, Canadian companies are looking for ways to cut costs. ![]() The “gold standard” of frac sand is known as “Northern White” and most Canadian companies haul it some 3,000 km or more from the upper midwest US to the big shale plays in northern BC and Alberta, adding between $50-$150/t for transportation plus significant exchange rate costs. Prices are forecasted to increase significantly over the next years as oil and gas producers are using more frac sand per well than anyone ever imagined, which is propelling this oilfield services sub-sector to the forefront of the oil and gas industry in a quite urgent way.Ī majority of Canadian frac sand is imported from the US given the very high quality of Wisconsin Sand. In 2015, total US frac sand production was estimated at 67 million t ( USGS) at prices ranging from $70-$84 USD/t. We believe these to be important factors in the recent takeover of the neighboring Moberly Silica Sand Mine, which is slated for production in 3rd quarter of 2017.“įrac sand has become a >$5 billion dollar industry in North America, surpassing the total value of many other minerals traded worldwide. ![]() “Domestic or western Canadian Frac Sand deposit with suitable quality would benefit from more advantageous transportation and exchange rate costs over foreign competitors. Adrian Lamoureux (President and CEO of 92 Resources) commented today: Heemskirk is the owner of the Moberly Silica Mine, which covers a portion of the Mount Wilson Formation.ĩ2 Resources’ Golden Frac Sand Property is not only adjacent and contiguous with Heemskirk’s quarry-style mine but also covers some 18 km strike length of the favourable Mount Wilson Formation, which hosts high purity, white quartzite with a high friability. 2 via its newly created private Canadian subsidiary Northern Silica Corp. was the subject of a >$42 million AUD takeover bid from Sydney-based Taurus Resources Fund No. Given the company’s relatively small market capitalization of around $6 million CAD, it is easy to see the savvy reasoning behind this.Ī few weeks ago, ASX-listed Heemskirk Consolidated Ltd. The company believes that significant value can be unlocked to increase shareholder value as the property represents a significantly undervalued asset given its potential to host a large, high quality frac sand deposit. today announced its plans to start mapping, sampling and drilling its Golden Frac Sand Property near Golden in British Columbia, Canada.ĩ2 Resources also announced today that it has expanded its Golden Frac Sand Property by almost 300%, adding 2,404 hectares to the original 808 hectares Zim Frac Property. While continuing to focus and advance its flagship Hidden Lake Lithium Project near Yellowknife in the Northwest Territories, 92 Resources Corp. The Moberly Silica Mine near Golden in BC is located adjacent to the greatly expanded Golden Frac Sand Property from 92 Resources Corp.
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