From CJES 2011 10-K. Hopefully this is helpful.
Delivery and Deployment of Fleet 6. In December 2011, we took delivery of the first part of our sixth hydraulic fracturing fleet, which we call Fleet 6A, and deployed it immediately for operations in the Permian Basin pursuant to a two-year term contract on a full month take-or-pay basis. Fleet 6A, which consists of 16,000 horsepower, has been continuously utilized for vertical completions since deployment. Originally Fleet 6B, making up the other part of Fleet 6, was to be a 16,000 horsepower vertical fleet, but, at our customer’s request, was increased to 32,000 horsepower with the necessary ancillary equipment and deployed effective February 13, 2012 for horizontal completions in the Permian Basin.
New Equipment Purchases. We have ordered three new hydraulic fracturing fleets, Fleets 7, 8 and 9. We anticipate taking delivery of Fleet 7 in April 2012 and deploying it soon thereafter for work in the Permian Basin. Fleet 8 is anticipated for delivery in the third quarter of 2012 but may be accelerated based on market conditions. Due to the robust nature of our internal cash flow and the confidence we have in our ability to expand our customer base, we have ordered Fleet 9, which we expect to receive and deploy by the end of the fourth quarter of 2012. We are actively seeking to secure multi-year take-or-pay contracts for Fleets 7, 8 and 9; although, we believe that the equipment can attract solid demand in the spot market if long-term contracts are not secured.
During 2011, we increased our coiled tubing fleet and the associated ancillary equipment by approximately 40%, expanding from a fleet of 13 units at the beginning of the year to a fleet of 18 units by the end of the year. We have ordered six new coiled tubing units together with the related ancillary equipment, which we expect to deploy in 2012 in new basins. Historically, we have successfully leveraged our existing relationships with coiled tubing customers to expand our fracturing business and we hope to do the same as we expand our coiled tubing operations into new basins in 2012. |
