The developer of a new frac sand mine near the northwest Oklahoma town of Oakwood is moving ahead with construction.
Preferred Proppants, LLC indicated the mine is expected to come online in the third quarter of 2018. As OK Energy Today reported in April, the company, also known as Preferred Sands, expects to hire more than 100 workers to carry out the mining from an in-basin operation. The job positions include electricians, maintenance technicians, heavy equipment operators, loaders, utility hands, plant operators, loadout operators and others.
The company recently held a job fair in Weatherford.
Preferred Sands was one of the first to file permits for a sand mine to serve the prolific SCOOP, STACK and other Midcontinent formations, further positioning the Company as a first-mover toward in-basin sand. This announcement follows the recent opening of its mine in South Texas and expansion into West Texas.
“As a leader in the frac sand business, we will continue to pioneer our national in-basin sand strategy in the SCOOP and STACK plays of Oklahoma,” said Michael O’Neill, founder and CEO of Preferred Sands. “We take pride in our superior products and customer service and are excited to partner with some of the largest oil and gas companies in the area as we continue our commitment to lowering costs and increasing production.”
Conveniently straddling Dewey and Blaine Counties, the facility will be located within five miles of two currently active rigs and within 75 miles of most major activity in the region. The site has access to major roads, water and utilities, and consists primarily of 40/70 and 100 mesh high-quality local in-basin supply.
“This is a critical year for the frac sand industry, as sand usage is expected to increase significantly,” O’Neill said. “As we continue our record of innovation, it is our goal to drive down costs for our customers through our localization strategy, which is centered on value-enhancing production and becoming the lowest cost-landed-at-well (CLAW) provider in the areas where we operate.”
With in-basin sand mines open in South Texas and West Texas, the Company expects to grow by more than 9 million tons of in-basin capacity once Oklahoma is up and running. These facilities, along with Preferred’s legacy plants in Nebraska and Arizona, which are operating at or near effective capacity, allow the Company to service exploration & production and oilfield service companies conveniently and cost-efficiently throughout North America.