HII Technologies Inc. (OTCBB: HIIT) purchased three additional flow back systems to expand its existing flow back operations through its AES Water Solutions subsidiary.
The combined manifolds, sand traps and gas separators are used as a system to remove materials and direct the water flowing back after a hydraulic fracturing job is performed at a well site. The three systems purchased totaled $1 million with the equipment supplier providing 100% of the financing for the company at a 5% interest cost. These additional flow back systems were purchased due to increasing demand for flow back services from existing AES customers.
“Strategically, AES has developed its core business around sourcing, managing, and delivering water to frac sites in order for oil and gas operators to perform hydraulic fracturing and well completions. AES’ above ground pipe and flat hose and pumps can deliver more than five million gallons of water per frac job. AES’ additional flow back services address the need to manage the water that comes back after fracing. Typically, 25% of the total volume of water pumped down hole during a frac operation flows back during the first three weeks after the frac job is completed,” Brent Mulliniks, AES Water Solutions president, said in the release.
“AES immediately deployed the initial flow back systems to existing customers. The purchase of these additional three new systems are in response to requests from our customers, and when fully utilized, may represent an increase of $100 thousand in monthly revenues per system. AES’ continued expansion into flow back services is an extension providing full frac water management services to its customers. Between transferring the frac water to the site and managing the flow back water, AES believes it is well positioned to add additional onsite services to its customers in the future,” said Matt Flemming, CEO, said in the release.
AES anticipates it could order additional flow back systems before the end of fiscal year 2013, depending on the continued demand for its flow back services.
HII Technologies Inc. is an oilfield services company headquartered in Houston with operations in Texas, Oklahoma, Ohio and West Virginia.