Performance Proppants, LLC has reached an agreement to purchase a 1,200 acre deposit (“Merryville”) in Merryville, Louisiana that contains up to 20 million tons of additional frac sand. The Company expects the facility to be fully operational by January 2022.
Performance Proppants is also in the final permitting stages of their 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.
Performance Proppants' President, Bill Bowdon, said, “The Merryville deposit is strategically located to serve our southeast Texas customers in the San Augustine area. 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 added, “We have been successful in securing new 24 – 36 month market share contracts with three of the more active operators in the Haynesville Shale. As always, our company 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.”