Brilliant MJ, so LWP's product represents The Middle Way. The...

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allatsea

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31/05/15

13:04

Post #: 15384653
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Originally posted by Michaeljob ↑

The cost of frack sand is estimated at $90-150/delivered tonne. Frack sand also accounts for 85-90% of proppant usage. LWP at the company presentation rate of 18c/lb comes in at $397/tonne which i believe will be exclusive of delivery. The recent fracking trend has been turning more towards utilising high quantities of cheap fracking material (sand).

There is always a production trade off when using sand as the propped fractures are less permeable than the fractures propped open by high crush ceramics. LWP will never be able to compete with sand on an upfront cost basis but once proven they may be able to take some of the sand market based on increased production profile over the life of the field.

The other key benefit that I think LWP will bring to the table is the lightweight proppant. The lower relative density will mean that their proppant will be able to be kept in suspension with less additives and will transport deeper into the fractures when compared with higher RD ceramics. Obviously the deeper the material will transport into the fracture the higher the flow surface area is which leads to increased production. the high crush characteristics mean that higher pressure can be applied when doing the initial frack and the fractures will be kept open for longer once the operation has been completed which extends the lifespan of the well or the time between rework.

If CKK/LWP can prove scalability of their process in line with anticipated production costs then we are just at the beginning of the growth stage.

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Brilliant MJ, so LWP's product represents The Middle Way.
The path to enlightenment folks

CKK Price at posting: 1.6¢ Sentiment: Buy Disclosure: Held
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