While Oklahoma’s first frac mine is under construction near the northwest town of Oak Wood, south Texas is getting another frac mine.
Black Mountain Sand, based in Fort Worth announced its expansion into the Eagle Ford Shale with the acquisition of 2,300 acres in Atascosa County.
Construction is immediately underway and the company hopes to have delivery of its first commercial tons by the end of the year. Once fully operational, the mine will employ 75 people and produce 2.2 million tons of sand a year.
The Eagle Ford mine will be Black Mountain Sand’s first expansion beyond the Permian Basin where it has two mines in operation.
“With the region currently producing approximately 12 percent of the US total oil production and growing, the need for local sand has become paramount for our customers,” says Rhett Bennett, founder and CEO of Black Mountain Sand.
Until recently, most frac sand consumed by Texas operators was shipped by rail from out-of-state mines in the Midwest, approximately 1,200 miles away, adding substantial logistics costs and inefficiency to the supply chain.
The adoption of in-basin sand delivers cost savings by significantly reducing these shipping expenses, which can account for 50 percent of frac sand costs. Current estimates indicate using in-basin sand will reduce the total cost of drilling and completing a well up to 10 percent – which can amount to over $500,000 in savings per well.
