Flotek Industries Introduces Next-Generation Complex Nanofluid® and Updates Progress on Enhanced Oil Recovery Project Developments
HOUSTON, Oct. 2, 2012 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") today announced, in conjunction with its 2012 Investor and Analyst Days that it is introducing CnF® 2.0, the next-generation of patented Complex Nanofluids to further enhance oil and natural gas production. "CnF 2.0 is a revolutionary breakthrough of our Complex Nanofluid technology that will not only further optimize production from oil and gas reservoirs but also dramatically reduces the environmental impact of completion and production processes," said John Chisholm, Chairman, President and Chief Executive Officer of Flotek. "By reducing the volume of proppant, chemicals and water while, at the same time, improving well production, the next generation of CnF transforms the drilling and completion cost equation and dramatically reduces the environmental costs of drilling."
CnF 2.0 builds on the success of Flotek's original Complex Nanofluid technologies by reducing and optimizing the particle size to better penetrate formations in unconventional resource plays. In addition, the redesign of the nano-particles allows for a number of different chemical additives to be included in the chemistry, allowing CnF 2.0 to address a number of diverse completion needs through one master chemistry. Moreover, CnF 2.0 is concentrated, meaning the amount of Complex Nanofluid needed to effectively address completion challenges in a well is reduced by nearly 50% when compared to the original CnF. The development of CnF 2.0 was a two year process under the direction of Flotek's chemistry research team based in Houston.
"Through the improvements in CnF 2.0 nano-physics, Flotek has created a more robust and effective completion chemistry," added Chisholm. "Initial trial results confirm that the use of CnF 2.0 further improved well performance, above that experienced with original CnF, and does so while reducing the need for horsepower, water and proppant. We look forward to marketing our game changing chemical technology to our current and prospective customers in the coming weeks and months."
Flotek is in discussions with a number of completion services companies and exploration and production concerns about adopting CnF 2.0. The Company expects initial commercial sales in the fourth quarter.
"We have talked at length about Flotek's commitment to research and development and the breakthroughs that can come from long-term commitment to R&D," added Chisholm. "Our chemistry team has, once again, proven that R&D is an investment in the future. In this case this research provides an exciting future for unconventional completions, environmental stewardship and, we believe, Flotek stakeholders."
Enhanced Oil Recovery Project Developments
In addition, Flotek announced today that it continues to make progress on its work in the Enhanced Oil Recovery ("EOR") arena.
Working with Chaparral Energy, Flotek has found the use of CnF for conformance control in a CO2 flood can have a significant impact on production by diverting CO2 into the portion of the reservoir that has the most productive impact. In early trials, production over a 3 month period increased by 14,000 barrels for an incremental cost of less than one dollar per barrel of production.
"While our work in the EOR field is in its nascent stages, early results with Chaparral and others suggest CnF can add significant value in secondary recovery projects," added Chisholm. "The improvement in production is significant for Chaparral and, we believe, will be for others we are working with on this exciting new application."
The slides associated with Flotek's investor and analyst days will be posted on Flotek's website concurrent with the Company's presentation beginning at 9:00am CDT on October 2, 2012.
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment. It serves major and independent companies in the domestic and international oilfield service industry. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."
For additional information, please visit Flotek's web site at www.flotekind.com.
Certain statements set forth in this Press Release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.
Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" Section), and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.
SOURCE Flotek Industries, Inc.