GasFrac Energy Services, a Canadian company that was developing waterless fracking, announced it will be selling most of its assets in Ohio.
On Tuesday, the Calgary based company shared it is selling “substantially all” of its assets and technology in an agreement with an undisclosed oil and natural gas company. Since January, which is when it the company filed for protection from creditors, GasFrac has been on the hunt for a buyer. As reported by Columbus Business First, “The sale is subject to approval of bankruptcy court in Canada and the U.S., where it has operations in San Antonio.”
When GasFrac entered the market, it came in banking on development of waterless fracking technology, an innovation that could potentially solve ongoing water usage problems for the oil and gas industry. The company began testing waterless fracking in its Tuscarawas County well with EV Energy Partners LP and others. According to state records, GasFrac began its first fracking tests on the well in November. The testing involved using gelled propane rather than water in fracking. GasFrac President Jason Munro told Columbus Business First that the procedure could work with natural gas formations, but the process was more directed towards oil extraction.
The selling of the company’s assets stems from financial issues. GasFrac lost $61 million, in Canadian money, during the first nine months of its fiscal year on sales of CA$31 million. According to Munro, the company was “cautiously optimistic” about the test well in Tuscarawas County. During a conference call on Monday, EV Energy Partners CEO Mike Mercer hinted towards the well and said it was fracking with liquid butane and mineral oil. He explained the company would have further details regarding the well after it has stabilized.