Source Energy Services Ltd. announced it has entered into a three-year agreement with a multinational exploration and production company to provide Northern White frac sand for its Duvernay program. The take or pay agreement will commence January 1, 2019 and allows for the customer and Source to expand volumes to further support the customer's growing Canadian operations.
The contract will be serviced from Source's Fox Creek, Alberta terminal. Featuring a current storage capacity of approximately 35,000 tonnes and an annual through-put capacity of over 1 million tonnes, Source's Fox Creek terminal is ideally located to service the customer in the Duvernay. As part of the contract, Source will be expanding its storage capacity at Fox Creek in early 2019.
Brad Thomson, Chief Executive Officer of Source said, "As a leading supplier of high quality Northern White frac sand to operators in the WCSB, Source is excited to support another company's operations in the Duvernay. With this agreement, the customer will be able to move from delineation to development with a reliable supply of high quality proppant."
He went on to say, "We're thrilled that another significant operator has chosen Source's Northern White sand for its program for the next 3-5 years. Source's scale and industry leading logistics allows us to economically deliver the highest quality frac sand to operators throughout the WCSB."
The contract is Source's third long term frac sand supply contract with a major operator accelerating completion activities in the Duvernay.