C&J Energy Services Signs Two-Year Contract For Its Sixth Hydraulic Fracturing Fleet

abarrelfullabarrelfull wrote on 24 Oct 2011 11:13
Tags: c&j services usa

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C&J Energy Services, Inc. (NYSE: CJES) announced today that it has signed a two-year contract with a large independent E&P company for a 32,000 hp hydraulic fracturing fleet for operations in the Permian Basin on a full month take-or-pay basis. C&J expects to take full delivery of all pumps and initially ordered ancillary equipment in November 2011 and immediately deploy Fleet 6. At our customer's request, and as contracted, C&J has ordered a complete second set of ancillary equipment for delivery in January 2012, which will enable Fleet 6 to be utilized as two independent 16,000 hp fleets for vertical completions, in addition to using the full 32,000 hp fleet to conduct horizontal work. Prior to the delivery of the additional ancillary equipment, C&J anticipates Fleet 6 will be used primarily for vertical completions.

"As a result of providing prior services, we have demonstrated our superior technical abilities and are now pleased to be entering into a long-term relationship with this top-tier E&P company," commented Josh Comstock, Chairman and Chief Executive Officer. "Due to the expected mix of horizontal and vertical work in the Permian, we were able to contract a second set of ancillary equipment maximizing the efficiency and utilization of our horsepower by dividing Fleet 6 into two separate fleets when completing vertical wells allowing us to perform two vertical completions simultaneously. This contract strengthens our position in the Permian Basin by allowing us to expand our presence in an area that has been in our strategic sight for some time. We plan to continue to focus on basins with long-term development potential and exposure to liquid-rich formations where we can apply the expertise of our design engineers and job supervisors to provide customized solutions through extensive front-end technical analysis and planning.

"As we deploy Fleet 6 by December, along with Fleets 7 and 8 that are expected to be delivered in 2012, we continue to focus on attracting, hiring and training dedicated employees to deliver top quality services to our clients. Our skilled people have increasingly become a key element of our success and are important participants in our growth plans as we expand into new service-intensive basins, utilizing our modern, high-pressure rated equipment. We are proud that we have recently exceeded 900 employees and are pleased to be able to continue to provide high quality jobs and training at a time when more jobs are needed in this country," concluded Comstock.

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