Eco-Stim Energy Solutions, Inc. (OTC:ESESD) ("EcoStim") announced today that it has completed the lease financing for the package of oilfield completion equipment that will be exported to Argentina. This equipment consists primarily of a coiled tubing unit and various pieces of complementary equipment. In this transaction, EcoStim has sold the equipment package to a third party leasing company controlled by two of the Company's Directors for $3.5 million. Simultaneously, the equipment package was leased back to an affiliate of the Company for a 60-month period beginning in February 2014. The lease financing transaction closed on December 30, 2013.
EcoStim's President and CEO Chris Boswell stated, "This financing was completed under competitive market terms and conditions and provides working capital to support operational start up costs while minimizing dilution to existing shareholders. We are working on the acquisition of additional equipment, both locally in Argentina and in the North American market, to further support our growing business in Argentina and the world class Vaca Muerta shale play."
Eco-Stim Energy Solutions is an environmentally-focused oilfield service and technology company providing proprietary field management technologies and well stimulation and completion services to oil and gas producers drilling in the rapidly expanding international unconventional shale market. EcoStim's proprietary methodology and technology offers the potential to decrease the number of stages stimulated in shale plays through a unique process that predicts high probability production zones while confirming those production zones using the latest generation down-hole diagnostic tools. In addition, EcoStim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions, surface footprint and water usage. EcoStim seeks to deliver well completion services with better technology, better ecology and significantly improved economics for unconventional oil and gas producers worldwide.