Black Mountain Sand Announces Third Texas Mine in Eagle Ford; Seeks to Increase Annual Output Capacity of Permian Basin Mines to Meet Growing Demand for In-Basin Frac Sand

New mine projected to deliver 2.2 million annual tons, already
fully contracted for use

FORT WORTH, Texas–(BUSINESS WIRE)–Black
Mountain Sand, a Texas-based in-basin frac sand provider, announced
today its expansion into the Eagle Ford Shale with the acquisition of
2,300 acres in Atascosa County. The company will begin immediate
construction on its third Texas mine with anticipated delivery of its
first commercial tons by year end 2018. Once fully commissioned, the
Eagle Ford mine will employ 75 people and produce 2.2 million tons of
sand annually. The mineÔÇÖs total annual capacity is already sold out
under long-term contracts.

The Eagle Ford mine will serve as Black Mountain SandÔÇÖs first expansion
beyond the Permian Basin and is the direct result of its customersÔÇÖ
requests to service their activity in and around Atascosa County.

ÔÇ£WeÔÇÖre excited to bring our proven in-basin product and operating model
into the Eagle Ford Shale. Producers here are eager to gain cost savings
and reduce lead time with in-basin frac sand delivery. With the region
currently producing approximately 12 percent of the US total oil
production and growing, the need for local sand has become paramount for
our customers," says Rhett
Bennett, founder and CEO of Black Mountain Sand.

Until recently, most frac sand consumed by Texas operators was shipped
by rail from out-of-state mines in the Midwest, approximately 1,200
miles away, adding substantial logistics costs and inefficiency to the
supply chain. The adoption of in-basin sand delivers cost savings by
significantly reducing these shipping expenses, which can account for 50
percent of frac sand costs. Current estimates indicate using in-basin
sand will reduce the total cost of drilling and completing a well up to
10 percent ÔÇô which can amount to over $500,000 in savings per well. With
drilling activity projected to grow in the Eagle Ford Shale, the
aggregate potential cost savings are significant. In 2017, 2,123 total
drilling permits were issued, and 2018 numbers are anticipated higher,
with 582 permits issued in Q1 2018.

Black Mountain Sand operates two mines in the Permian
Basin that are quickly approaching nameplate capacity of 10 million
tons annually, the largest in the basin by a significant margin. To help
meet growing demand for its Winkler White®, the company is in the last
stage of evaluating the addition of a fifth dryer at each location,
which will enable it to increase production to a combined total of 12
million annual tons, or the equivalent of over 520,000 truckloads of
sand per year.

ÔÇ£WeÔÇÖre honored to expand our footprint and grow with our customers in
Texas ÔÇô both by exploring expansion possibilities in the Permian Basin
and by adding a new mine in the Eagle Ford,ÔÇØ notes Bennett. ÔÇ£Our
commitment is to provide the most dependable, cost-effective, and timely
access to in-basin sand wherever our customers operate.ÔÇØ

ABOUT BLACK MOUNTAIN SAND

Black Mountain Sand, an in-basin frac sand provider, delivers superior
in-basin proppant solutions to the oilfield services and exploration and
production (E&P) industries. With two mines operating in the Permian
Basin, the companyÔÇÖs Winkler White┬« frac sand product, available in both
40/70 and 100 mesh, provides a high-quality, cost-effective solution to
meet the demands of in-basin operators.

To learn more about the NGP-backed company, visit www.blackmountainsand.com,
follow on Facebook
or Twitter,
or call 817-698-9901.

Contacts

Black Mountain Sand
Beverly Suffern, 817-529-9479
[email protected]