SOURCE: Flotek Industries, Inc.

September 18, 2006 18:55 ET

Flotek Industries, Inc. Announces Signing of Multi-Million Dollar Liquids Facility Contract

HOUSTON, TX -- (MARKET WIRE) -- September 18, 2006 -- Flotek Industries, Inc. (AMEX: FTK) announced its Material Translogistics, Inc. ("MTI") division has signed a multi-million dollar agreement to build and operate a liquid chemical distribution facility. The agreement will cover a period of five years, beginning upon the completion of facility construction which is estimated to occur in the second quarter of 2007.

The liquids contract is expected to more than double the revenue base of the Raceland, Louisiana facility. The agreement calls for the construction of a 30,000 square foot state-of-the-art bulk liquid storage tank farm and laboratory. MTI will provide services related to the delivery, storage, and packaging of certain liquid chemicals. The five year contract provides guaranteed base payments if minimum throughput volumes are not met, and thereafter payments are tied to throughput levels.

This facility will enhance MTI's existing pneumatic cement handling and blending facility which has been in operation since 2002. Both facilities will provide services, facility management, and logistics for cementing and stimulation products used offshore in the Gulf of Mexico.

Jerry D. Dumas, Sr., Chairman and Chief Executive Officer, comments, "The signing of this agreement is a result of the success of the existing bulk handling outsourcing arrangement and the recognition that Flotek can provide a reliable, high quality, low cost outsourcing liquids management solution. We are not seeing a slow down in any of our divisions and are excited to further expand the product offerings of our chemical and logistics division. Company activity is at an all-time high and the major independent service providers recognize this as reinforced by the signing of this long term contract."

Flotek manufactures and markets innovative specialty chemicals, downhole drilling and production equipment, and manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry. For additional information, please visit Flotek's web site at http://www.flotekind.com.

Forward-Looking Statements:

This Press Release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc. business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.

Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10KSB (including without limitation in the "Risk Factors" Section) and Form 10-QSB, and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.

Contact Information

  • CONTACT:
    Flotek Industries, Inc.
    Rosalie Melia
    Corporate Secretary
    713.849.9911