Shale Support Gets Loan to Buy 2 Frac Sand Mines to Service M-U
Earlier this week CrowdOut Capital announced they have arranged a private, non-bank loan for frack sand company Shale Support to fund "the acquisition of two sand mines, spanning over 1,000 acres that contain more than 100 million tons of recoverable high-grade frac sand, which are located near the prolific shale plays in the southeastern U.S." No details on the amount of the loan nor the names/location of the sand mines were released. However, as we reported in early July, Shale Support announced a deal to buy two sand mines in Louisiana (see Shale Support Buys 2 Frac Sand Mines in La. to Help Service M-U). Last September MDN told you that Shale Support, headquartered in Texas with an operations center in Mississippi, was stepping up its presence in the Marcellus/Utica region with a partnership with Tidewater Logistics (see Shale Support Holdings Expands M-U Frac Sand Business via Partnership). The partnership increases Shale Support’s operations in Ohio, Pennsylvania and West Virginia. Because Shale Support can ship sand direct from Mississippi, which is much closer than most other alternatives, the price for frac sand is cheaper for customers. Shale Support announced another important deal in May of this year, to become the exclusive supplier for a major regional frac sand facility in Bradford County, PA (see Shale Support Exclusive Frac Sand Supplier for NEPA Facility). While the CrowdOut announcement doesn't say it, we believe the this loan will fund the two new Louisiana sand mines previously announced. Yes, some (most?) of the sand will go for drilling in the Haynesville and other plays in the region. But some of that sand will no doubt find its way to the Marcellus/Utica, hence our interest in Shale Support and how they finance their operations...
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