Gen6 Proppants launched plans to develop a new frack sand mine to serve the Haynesville Shale region on Sept. 25 with the acquisition of roughly 1,000 acres in Red River Parish in northern Louisiana.
The new Gen6 mine will be located in the core of the Haynesville and help provide area producers “significant time and cost savings on transport and logistics,” according to the company release.
“The growing need for a more local frack sand source has become paramount to our customers as drilling in the Haynesville continues to increase,” Brant Baird, president of Gen6, said in a statement on Sept. 25. “The new Gen6 mine will be the closest frack sand mine to the ten top producers in the Haynesville. With over 1,200 truckloads of sand going to the average two-well Haynesville pad, our location allows us to significantly reduce transportation and logistics costs.”
Once fully commissioned, the Gen6 mine is expected to produce 1.5 million tons annually of local 40/70 and 100 mesh sand with an estimated reserve of more than 75 million tons of frack sand.
Gen6 said permitting and procurement has begun on the new Louisiana mine and construction is expected to begin this year. The company anticipates delivering its first commercial tons by mid-2019.
Headquartered in Houston, Gen6 is part of the Momentum Midstream family of companies and is led by a team of professionals with experience in all facets of the oil and gas industry, the release said.
Interest is expected to continue picking up in the Sergipe-Alagoas Basin as the country looks to attract investors to areas beyond, though not excluding, presalt.
Energean, which is focused in the Mediterranean, will sell Edison E&P’s U.K. and Norwegian units for $250 million, with additional cash contingent consideration of up to $30 million.
MicroSeismic CEO Peter Duncan believes operators are just learning the true mysteries of the U.S. unconventional play subsurface.