SOURCE: ESP Resources, Inc.

ESP Resources, Inc.

August 02, 2012 09:50 ET

ESP Resources, Inc. Issues Letter to Shareholders

Company Provides Recap of Recent Growth and Discusses Future Expansion Plans

SCOTT, LA--(Marketwire - Aug 2, 2012) - ESP Resources, Inc. (OTCBB: ESPI) (the "Company" or "ESP Resources"), an oil and gas services company, today issued a letter to shareholders from the Company's President, David Dugas, providing a recap on the growth in the first half of 2012 as well as a discussion on the business and plans for expansion in 2012 and beyond.

Dear Shareholders,

We are pleased to report that ESP Resources saw significant top-line growth in the first half of 2012. As a result of heightened demand for our cost-saving products and services to the oil and gas industry, we are not only seeing sales volume more than double from last year and quarter over quarter, but we also are seeing improved margins as costs continue to be cut. With our second quarter just being completed and our third quarter in full swing, we expect such growth to continue as we prepare to strategically expand our portfolio of services to a larger geographic customer base. Our growth is being augmented by the continued rapid expansion of our fracking chemical division, which was started just over a year ago in March of 2011. Since that time, we have seen that division grow to over 50% of our sales per month, given the dramatic impact that new technologies are bringing to the oil and gas shale plays in the United States. Furthermore, our growth is now being positively impacted by our newest division, ESP Facility & Pipeline Services, which was started just this year.

Financial Discussion

First quarter 2012 revenues came in at approximately $4.3 million, showcasing a rise of 136% from the previous year ago period. Coupled with our revenue outlook for the second quarter, our total revenue for the first six months of 2012 is approaching $10 million, or a rise of over 138% from the same period in 2011. Margins grew slightly from the comparable periods as a result of an increase in purchases of certain raw materials used in our operations which reduced cost on a per unit basis, resulting in an overall reduction in our service delivery cost.

Business Discussion

With increased sales stemming from hydraulic fracturing customers and customers in Southern Louisiana, South and Southeastern Texas and Arkansas regions, the first half of 2012 was marked by the substantial growth of our business. Building on the sales momentum of 2011 and plans for expansion in 2012, we expect that even greater growth will occur this year for our business and our shareholders. We are working towards bringing on more established, well known global customers and, with domestic sales growing strong, we have shifted our focus this year to further expanding our international presence and strategically adding to our portfolio of oil and gas services.

As announced on May 17th of this year, under the terms of our new joint venture with KUJV Limited, it is anticipated that we will be working on the ground in Papua New Guinea, specifically to provide infrastructure-related operational management services for certain infrastructure-related project work with regards to the development and completion of the Komo International Airfield, an opportunity that we are extremely excited about. This is part of the very large liquid natural gas project being developed in the country and headed up by the largest publicly traded oil and gas company worldwide. Once under contract and alongside KUJV, we intend to employ and utilize local and international subcontractors to carry out duties as outlined under the joint venture, ESP KUJV Limited.

Adding infrastructure-related operational and managerial services to our already competitive repertoire of petrochemical and analytical services and factoring in the opportunity to work with the largest oil and gas company in the world puts ESP Resources at a distinct advantage to other players in the market. We have significant revenue growth drivers at our fingertips. It is our intention to capitalize on our current position and further expand our oil and gas services portfolio to include other infrastructure-related work such as engineering and consulting. With companies relying heavily upon infrastructure for the proper and safe production and transportation of their valuable and highly temperamental products, it's important that we explore offering these services, as they could be another potentially profitable revenue driver for us and a convenient, cost effective solution for our customers.

As evidence of that, last month on July 18th, we announced our newest division, ESP Facility & Pipeline Services, which is already profitable and producing a considerable revenue stream.

Business Outlook

Looking ahead, we remain extremely optimistic and excited about where our company is headed. Given current and forecasted market demand for oil and gas reserves worldwide and our unique position in that market, we are convinced that our sales and our customer base, both domestically and internationally, will continue to grow. We look forward to broadening our portfolio of services offered and increasing our value and satisfaction among current and new customers. While we are not providing guidance at this time, we will continue to update the investment community as to our progress throughout the year.

Thank you for your continued support as we continue to grow ESP Resources into a larger enterprise. We look forward to sharing with you all our many successes now and in the future.


/S/ David Dugas
President of ESP Resources, Inc.

About ESP Resources, Inc.:

ESP Resources, Inc. is a publicly traded oil and gas services company (OTCBB: ESPI) headquartered in Scott, LA. Through its subsidiaries, the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry and also provides services for the upstream, midstream and downstream sectors of the energy industry, including new construction, major modifications to operational support for onshore and offshore production, gathering, refining facilities and pipelines designed to optimize performance and increase operators' return on investment. The Company's senior management has over 100 years of combined operating experience in the oil and gas services 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.

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