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This Week’s Market Buzz

  • Rangeland Energy is moving up to eight railcars per day of frac sand for Halliburton at its Rio crude-by-rail terminal near Loving, N.M., keeping alive a system that would otherwise be idled amid narrow domestic crude differentials, according to a report on Reuters. The midstream operator is moving as many as eight railcars per day of frac sand at the Delaware Basin terminal. In early October, Rangeland delivered a record 150-car unit train at the Rio facility, Patrick McGannon, vice president of business development, said at the Argus Condensate and Naphtha conference in Houston, Texas.
  • Select Sands Corp. said it has completed a drilling program covering approximately 95 percent of its Sandtown Silica Sands project. The program demonstrated “uniformity and quality equivalence to the sandstone that was incorporated in the company's inaugural Preliminary Economic Assessment (PEA),” the company said. The samples from the current drilling have been submitted for analysis at Stim Lab of Oklahoma. Upon the receipt of the results from the lab, the company will release an updated resource estimate. A total of 15 of the 20 holes drilled intersected the targeted silica sand zone, while four holes to the southwest intersected a gravel/clay zone that is to be used to build haul roads on the property. "We are pleased to know that rest of the property has similar potential to what has been previously drilled," said Rasool Mohammad, president and CEO of Select Sands. "The average thickness of 56.5 ft. of sand is very similar to our last program, indicating uniformity of the zone."
  • At the 2015 DUG Eagle Ford Conference in San Antonio, Texas, SandBox Logistics announced that it took delivery of its first proprietary SandBox Rail Cars, which are specifically designed to move frac sand by rail using modular SandBox Containers. The delivery of the first two rail cars will support ongoing testing and demonstrations. Overall, these rail cars represent a significant advancement in the deployment of SandBox Logistics' innovative containerization solution for mine-to-wellhead proppant delivery in the oil and gas industry, the company said. Even in the face of a severe market downturn in 2015, SandBox continued to expand its operational footprint, which now encompasses five major shale basins including the Bakken, DJ, Eagle Ford, Marcellus and Utica basins. Commenting on the new rail car delivery, Josh Oren, president and CEO of SandBox Logistics, said "The delivery of these innovative new rail cars represents an important milestone for SandBox as we continue to deploy our comprehensive proppant logistics solution and work to create sustainable cost savings and efficiency gains for the oil and gas industry."