Source Energy Services Canada LP

Source Energy Services Canada LP

December 11, 2013 14:00 ET

Source Energy Services Initiates Operations at Largest Proppant Transloading Terminal in Canada

CALGARY, ALBERTA--(Marketwired - Dec. 11, 2013) -


Source Energy Services Canada LP ("Source Energy Services", "SES" or "the Partnership") announced today the initiation of operations and the completion of the first phase of its transloading terminal facility in Wembley, Alberta. Source Energy Services has started to transload frac sand from the facility while completing construction of a major frac sand storage terminal. When completed in the first quarter of 2014, the SES Wembley terminal will be the largest frac sand storage and distribution facility in Canada.

The Wembley facility currently has over 7,500 feet of operating track in place and will have a storage facility that will accommodate 50,000 metric tons, or over 110 million pounds, of frac sand. The facility will be the first in Canada to accommodate these volumes and will be able to unload 100 rail cars of frac sand in less than 24 hours.

Brad Thomson, CEO of Source Energy Services stated, "The Wembley terminal has been specially designed to accommodate the needs of the Montney and Duvernay shale plays. The facility complements our network of existing terminals in Alberta and allows us to provide levels of frac sand supply and logistics services that were never previously available in the Western Canadian Sedimentary Basin ("WCSB")."

At the Wembley terminal, the Partnership plans to distribute third party sand as well as sand originating from its Wisconsin processing plant. Currently, SES is commissioning a state of the art processing facility that will able to produce over 2.0 million tons of high quality Wisconsin northern white frac sand per year. The majority of this sand is earmarked for the WCSB.

"Our substantial investment in frac sand processing and handling facilities demonstrates our commitment to the Canadian frac sand market," says Thomson. "We are focused on providing supply and logistics solutions that have not previously been provided to the pressure pumping industry. We will be replicating this model in Texas in the Eagle Ford basin. Our approach to the business will allow us to supply frac sand to our customers where they need it…when they need it."


Source Energy Services is a private company with over a decade of proppant supply and oilfield logistics experience. Its services cover the entire proppant supply and logistics chain including mining and processing sand, rail terminalling, trucking, and custom solutions for high capacity storage and non-pneumatic handling at the well site.

Prior to October 2013, the Company conducted its business through Sand Source Services, Source Logistics, Source Chemicals, Ammos Field Solutions and Canadian Sand and Proppants. In October of this year, the operations were consolidated under the Source Energy Services brand.

Source Energy Services features a market leading frac sand network with 11 active terminals and has plans to open 4 additional terminals in 2014. Its frac sand mine and processing facility in Wisconsin is expected to generate over 2 million tons per year of the highest quality northern white frac sand. Source Energy Services also handles hydrochloric acid (HCl) and carbon dioxide (CO2) at some of its terminals.

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Forward Looking Information

This press release may contain forward-looking statements. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes. Forward-looking information in this Press Release includes but is not limited to, assumptions concerning future production and operating results. SES believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause SES's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the inability of SES to achieve certain production and operating results. Any forward-looking information is made as of the date hereof and, except as required by law, SES does not undertake any obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.

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