Please provide an overview of EcoStim’s mission and activities since it was founded in 2011.

EcoStim Energy Solutions is a company that was founded in 2011. The company’s primary objective is to provide the best equipment, technology, and relevant experience to national oil companies and other operators in markets outside North America that are developing shale resources. Over the years, EcoStim has acquired or licensed various technologies to help its customers accelerate the development of their resources by leveraging the knowledge and advancements gained from the US shale development. To date, the company has conducted over 350 predictive “sweet spot” studies in the United States and another 20 in Argentina. EcoStim has also conducted the first-ever, down-hole fiber optics monitoring study in the Vaca Muerta shale play. The company began operations of its first well stimulation fleet in December 2014 and started operating its first coiled tubing unit in February 2015. In addition, EcoStim signed a technology-development agreement with Y-Tec, the technology arm of YPF.

What is the competitive landscape like for companies offering services similar to Ecostim, and what sets Ecostim apart?

Several companies offer services similar to EcoStim, and the competitive landscape is intense. However, EcoStim has established a strong, trusted advisor relationship with its customers by working with local operators for several years, helping them better understand their reservoirs and diagnose the results and performance of their previous wells. Additionally, EcoStim combines its unique sub-surface predictive reservoir modeling skills, down-hole diagnostic tools, and efficient completion systems to bring unprecedented efficiencies to the development of unconventional resources. The company offers its customers a methodology that allows them to high-grade their acreage without drilling thousands of wells, predict “sweet spots” along each horizontal well, confirm the accuracy of each prediction using proprietary diagnostics tools, and then calibrate the predictive model based on real-time observations from the well’s stimulation, flow back, and ultimate production. This methodology can significantly reduce the stimulation of non-productive zones, thus focusing on those zones with the highest probability of success. EcoStim also prefers stimulating the well with coil-activated sliding sleeves, which reduces the pumping rate by two-thirds compared to more traditional plug-and-perf methods, reducing the amount of surface-based horsepower by up to 67%. This, in turn, reduces fuel costs, water usage, and above-ground impact to the local community. EcoStim’s unique turbine-powered pumping units have the ability to run on CNG, which provides significant cost advantages with additional emissions benefits.

What difficulties, if any, has EcoStim faced in importing and assembling its fleet?

Importing equipment into Argentina is challenging, but EcoStim has a firm commitment to supporting local industry and creating jobs. To accomplish this, the company worked closely with several government agencies and local vendors, including QM Equipment, to ensure that it meticulously followed all importation laws while simultaneously making a substantial commitment to building additional equipment locally in Argentina. This process took several months to complete, but once it was done, the importation went smoothly. In fact, EcoStim received its first set of equipment in Buenos Aires in September and executed its first job in December with excellent results.

Why did EcoStim begin its operations in Argentina in 2014?

EcoStim began its operations in Argentina in 2014 after thoroughly evaluating each international shale market. When the company started evaluating opportunities to expand its operations to other unconventional markets in 2012, it became clear that Argentina had all the elements for a successful shale play.