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Preferred Sands Announces Commercial Opening to Serve Eagle Ford Shale

Preferred Proppants, LLC (“Preferred Sands”) announced that it has commenced commercial operations at its Atascosa sand mine and facility, marking another milestone as the Company continues its national in-basin sand strategy aimed at reducing the cost of sand and associated logistics for customers in the region.

“This opening represents a significant event within our continued, multi-year localization strategy,” said Michael O’Neill, founder and CEO of Preferred Sands. “The Atascosa facility, coupled with our second local plant opening in the near term in Monahans, Texas, will ultimately add over 6 million tons of capacity available to our customers in both the Permian Basin and Eagle Ford Shale. We’re excited to continue our record as an innovative first mover and remain committed to being the lowest CLAW (cost-landed-at-well) and highest production-enhancing partner to our customer base in all the areas in which we operate.”

Preferred Sand’s logistically advantaged Atascosa facility includes a wet and dry plant and storage silos, as well as automated, multi-lane, drive-in, drive-out trucking capabilities. The plant produces high quality 40/70 and 100 mesh local sand for Eagle Ford operators and will ultimately produce approximately 3 million tons of finished goods product per year. The plant is substantially contracted by large, well-known, oil and gas operators and service companies, which will be complemented by some spot sale of product, when available.

After closely studying data on proppant performance and comparing coarser Northern White sand and local, finer sand, Preferred Sand led the industry shift away from Northern White. Preferred Sand closed its Northern White mine in Minnesota in 2015 and sold its Blair and Bloomer, Wisconsin mines in 4Q 2017. Preferred’s renewed focus on local sand positions the company to have a unique multi-basin approach. This strategic localization strategy is driven by the Company’s goal to drive down costs for customers.

These events continue a plan put in place nearly three years ago for Preferred Sand to be the lowest cost-landed-at-well (CLAW) regional and in-basin local provider of frac sand in the most prolific basins in the United States.

For more information about Preferred Sands, visit www.PreferredSands.com.

About Preferred Sands

With strategic regional plant locations in Arizona and Nebraska, as well as an in-basin plant in South Texas and a second expected in West Texas, Preferred Sands services exploration & production and oilfield service companies throughout North America. The company is continuously recognized for its environmental responsibility and achievements in health and safety as an industry-leading operator.

Preferred Sands is also one of North America’s leading manufacturers and providers of high-quality and innovative proppant technologies. Preferred’s innovative proppant technology solutions include Preferred Polymeric Proppants, an advanced downhole coated proppant technology designed for maximum production efficiency; FloPRO PTT™, proppant transport technology designed for superior proppant distribution; and DustPRO™, a leading dust prevention technology designed to reduce airborne particles during all sand transfer points. These pioneering products have earned Preferred world-wide recognition as a leader in innovative and sustainable technologies throughout the oil and gas, chemical, and technology industries.

The Company’s various awards include a finalist for the World Petroleum Council’s Technological Development recognition in 2017; 2014 CPI Polyurethane Innovation Award for Improving Oil Productivity; 2014 R&D 100 Award for Improving Oil Productivity; 2013 Oil & Gas Awards for Environmental Initiative of the Year, Industry Supplier of the Year, and Excellence in Environmental Stewardship; and 2012 Ernst & Young Entrepreneur of the Year in Energy, Cleantech, and Natural Resources.