Waterless fracking company in acquisition deal by Tom Knox, March 3, 3015, Columbus Business First
The Canadian company that had high hopes to bring waterless fracking to eastern Ohio is selling most of its assets and technology. GasFrac Energy Services Inc., based in Calgary, announced the deal for “substantially all” assets and technology with an undisclosed oil and natural gas industry company Tuesday. The company (OTCPK:GSFVF) had been looking for a buyer since at least January, when it filed for protection from creditors. The sale is subject to approval of bankruptcy court in Canada and the U.S., where it has operations in San Antonio.
GasFrac inspired a lot of hope in the oil and gas industry as it was testing its waterless fracking well in Tuscarawas County with Houston-based driller EnerVest’s subsidiary EV Energy Partners LP (NASDAQ:EVEP) and other partners. State records show GasFrac started its first fracking operations on the well in November. GasFrac’s technique used gelled propane instead of water in hydraulic fracturing. GasFrac President Jason Munro told me in November that the technique could work in natural gas formations but targeted oil, which is difficult to economically drill for in the Utica shale play. The company had financial issues then, losing $61 million (Canadian) in the first nine months of its fiscal year on sales of $31 million (Canadian). Munro said the company was “cautiously optimistic” about the test well. EV Energy Partners CEO Mike Mercer alluded to the test well in a conference call with analysts Monday. Mercer said the well was fracked with liquid butane and mineral oil and that the company will have more details later when the well stabilizes. [Emphasis added]
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Slides from Ernst presentations in Ireland 2012