Performance Proppants, a Louisiana-based privately owned sand mining company, announced its plans to purchase a 1,200 acre deposit in Merryville, Louisiana in order to build a new frac operations in a $10 million dollar investment.
The Merryville facility is expected to be fully operational by January 2022, the company said in a news release.
Performance Proppants is also in the final permitting stages of its Sunny Point facility, which is a joint partnership between the Caddo-Bossier Port and Performance Proppants.
The plant is on a large privately owned 700 acre oxbow lake off the Red River that contains 45 million tons of frac sand reserves. The company expects the Sunny Point plant to commence operations in the second quarter of 2022.
Combined, the Merryville and Sunny Point plants will add an additional 3.5 million tons of frac sand capacity to the Haynesville Shale basin.
“The Merryville deposit is strategically located to serve our southeast Texas customers in the San Augustine area," said Performance Proppants' president, Bill Bowdon. "Nearly 100% of the annual 1.5 million ton capacity is currently contracted. Additionally, we are excited to begin the next phases of the Sunny Point project, which can serve nearly every operator in the basin. The Haynesville Shale continues to prove its resilience and stability when compared to other basins.”
Bowdon said the company has been successful in securing new 24 to 36 month market share contracts with three of the more active operators in the Haynesville Shale.
"As always, Performance Proppants is committed to providing our customers with low-cost solutions to their frac sand needs, and as demand for sand increases through the next several months, we are committed to building capacity to meet that demand,” said Bowdon.
