North America Frac Sand Inc. announced the acquisition of North America Frac Sand (CA) Ltd. and its 30,000 acres of leases that are estimated to contain 6.4 million tons of recoverable reserves of frac sand, and potential reserves of at least 66 million tons.
The three challenges of discovering new frac sand reserves are:
- Meeting all of the API specification with respect to size and shape of the frac sand deposits. “Our frac sand deposit contain the three most common sizes 20-40,30-50, 40-70 & 70-140 all of which meet API standards,” the company said.
- Sufficient contiguous volume and value to be economical. “Our frac sand deposit is both of sufficient volume and quality to be economic. We have minimum overburden; we have our mining permits; we are ready to continue to prove up our resource, build our plant, and start shipping,” the company continued.
- Are in close proximity to either, oil and natural gas reservoirs, or at least to rail, for cost efficient transportation. “We are truck-able distance to the major Bakken reservoir in North Dakota, Montana, Alberta and Saskatchewan; as well as the Duvernay, Horn River, Montney, Viking and Cardium reservoirs of Western Canada. Annual requirements are in the millions of tons for new drilling and recompletions,” the company added.
“We are strategically located to replace a significant portion of the 70 percent of the frac sand currently being imported into Canada from Wisconsin,” the company concluded. “By trucking directly to our customers, not only do we save 1,500 km shipping costs, we by-pass the current bottlenecks of the supply chain, which are rail car availability; lack of trans-loading facilities and sand storage infrastructure; and improving last mile deliveries. Additionally, in this short-term period of low price oil, we provide a cost efficient solution to deliver the frac sand exactly when and where the drillers require the frac sand.”