Basic Energy Services, Inc. (OTCQX: BASX) (“Basic”) announced today the successful testing of an automated water management solution with a major US operator. The solution provides a step change in efficiency, allowing the client to simply manage their water volumes within their existing internal dispatch system, while Basic’s integrated solution automatically picks up and routes the orders as required. Once routed, the solution provides real time updates on job status, vehicle location information, and automated ticket processing from generation to approval. Improved efficiency in dispatching and ticket handling represents a potential reduction of 4% or more in operating cost related to water disposal activities.
By automating several manual workflows and integrating currently deployed technology solutions such as FieldFX, Basic is significantly reducing the associated management cost for handling produced water. Decreased cycle time coupled with improved compliance and traceability result in reduced operating costs and improved auditability. The flexible design of the solution allows for additional operational synergies by further integrating with customer supervisory control and data acquisition (“SCADA”) systems allowing for end to end instrumentation. This will eliminate manual input and allow automated reconciliation of disposed water volumes, providing for further significant reductions in operating costs.
Basic is excited about reaching this milestone in efficiency, having evolved with the increasing water management needs of the industry that have grown significantly over the last several years. This solution can easily be integrated with a variety of customer systems, minimizing change management costs. Water disposal costs are a significant portion of operating costs for many US operators, and Basic’s Water Logistics business generates more than 100,000 invoices a year for produced water disposal.
About Basic Energy Services
Basic Energy Services provides wellsite services essential to maintaining production from the oil and gas wells within its operating areas. The Company’s operations are managed regionally and are concentrated in major United States onshore oil-producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused in liquids-rich basins that have historically exhibited strong drilling and production economics in recent years with a significant presence in the Permian Basin, Powder River Basin, and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information is available on the Company’s website at www.basices.com.
Safe Harbor Statement
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and reflect Basic’s current views about future events. The words “believe,” “estimate,” “expect,” “anticipate,” “project,” “intend,” “seek,” “could,” “should,” “may,” “potential” and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Although Basic believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions and estimates, certain risks and uncertainties could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release and the presentation. These risks and uncertainties include, without limitation, our ability to successfully execute, manage and integrate acquisitions, including the recent acquisition of C&J, reductions in our customers’ capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, volatility in commodity prices for crude oil, including the recent significant decline in oil prices, and natural gas, local and global impacts of the COVID-19 virus, and the negative impacts of the delisting of the Company’s common stock from the NYSE. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made and Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise, except as required by applicable law.