New Duvernay contract to support expansion of Source frac sand terminal

Image: Carter Haydu/JWN

Source Energy Services says it has entered into a new agreement to supply frac sand for an unnamed producers’ Duvernay drilling program in Alberta.

The three-year deal is to be supplied from Source’s terminal at Fox Creek, where the company will be expanding its storage capacity in early 2019.

“With this agreement, the customer will be able to move from delineation to development with a reliable supply of high quality proppant,” Source CEO Brad Thompson said in a statement.

It’s the company’s third long-term frac sand supply agreement in the Duvernay. Its value was not reported. According to GMP FirstEnergy analyst Ian Gillies, the customer is likely either Royal Dutch Shell, ExxonMobil/XTO or Murphy Oil.