I was looking at the competition and this company produces a flyash product although fines at 5000psi look high
What is mentioned in a small bar chart is this: according to this estimate, only 40% of the cost of the proppant is mining it. 35% is freight, presumably rail, then 5% transloading from rail to truck and then 20% trucking it to the well.
Why this is relevant is it is unclear from LWP technologies website estimation whether they are comparing "all in" costs with their .18 USD per pound illustrative costing or just an equivalent fabrication cost to mining.
The significance of this is that proppant cost/company value estimation is substantially more complex when taking into account transport and logistics
The link mentions that 30% of all Texas Eagleford shale wells lie within 400 Miles (643 km) of Dolet Hills coal fired power station and makes the argument that substantial cost savings could occur due to the estimated 60% cost of transport/logistics in proppant purchase.
LWP Price at posting:
0.5¢ Sentiment: None Disclosure: Held
