Eco-Stim Energy Solutions Completes Downhole Diagnostics Evaluation; Awarded New Projects

Eco-Stim Energy Solutions, Inc. announced today that it has completed an initial downhole fiber optic well evaluation for a significant European-based exploration and production company in Argentina. This project was conducted in connection with the contract originally announced in March 2016 and was designed to evaluate certain technologies that are expected to benefit operators in designing their ongoing drilling and completion efforts in Argentina. Based on the positive technical results on the first well, EcoStim has now been awarded a second contract for similar services and is actively working with the customer on several additional projects.

On the recently completed project, EcoStim and its customer deployed downhole diagnostics tools to gather real-time production information on producing wells in the Neuquén basin. The goal of this project was to demonstrate the benefits of using fiber optic DTS and DAS technologies to better understand the reservoirs productive capability and characteristics, including "sweet spots" within the formation. We expect that the information gathered will be integrated into the customers' reservoir model to better understand and predict those locations with the highest probability of good production. The interpretive software and analytic tools evaluated on this project were compared to alternative approaches and determined to provide superior results which EcoStim believes can provide significant value on future applications.

Hays Allen, the project manager for EcoStim, stated, "This project demonstrated the technical skills of the integrated team we have assembled together with our customer and the innovative culture we are creating to improve performance. We are very encouraged by the results of this initial collaboration as well as the new projects that are being generated following the completion of the pilot project. The initial data was gathered, processed and subsequently interpreted with a final report provided to our customer in the past few weeks. Together, we are learning much more about the reservoir and the ultimate goal is to better understand the reservoirs productive capacity and allow for a more targeted development ultimately allowing this field to be developed in a more efficient manner."

Source: Eco-Stim Energy Solutions, Inc.
Date: Jul 21, 2016