Preferred Sands Announces Commercial Opening of South Texas Sand Mine to Serve Eagle Ford Shale

Unique greenfield state-of-the-art in-basin facility to provide local
frac sand to Eagle Ford oil and gas companies

RADNOR, Pa.–(BUSINESS WIRE)–Preferred Proppants, LLC (“Preferred Sands” or “Preferred” or the
“Company”) announced today that it has commenced commercial operations
at its Atascosa sand mine and facility, marking another milestone as the
Company continues its national in-basin sand strategy aimed at reducing
the cost of sand and associated logistics for customers in the region.

“This opening represents a significant event within our continued,
multi-year localization strategy,” said Michael O’Neill, founder and CEO
of Preferred Sands. “The Atascosa facility, coupled with our second
local plant opening in the near term in Monahans, Texas, will ultimately
add over 6 million tons of capacity available to our customers in both
the Permian Basin and Eagle Ford Shale. We’re excited to continue our
record as an innovative first mover and remain committed to being the
lowest CLAW (cost-landed-at-well) and highest production-enhancing
partner to our customer base in all the areas in which we operate.”

Preferred’s logistically advantaged Atascosa facility includes a wet and
dry plant and storage silos, as well as automated, multi-lane, drive-in,
drive-out trucking capabilities. The plant produces high quality 40/70
and 100 mesh local sand for Eagle Ford operators and will ultimately
produce approximately 3 million tons of finished goods product per year.
The plant is substantially contracted by large, well-known, oil and gas
operators and service companies, which will be complemented by some spot
sale of product, when available.

After closely studying data on proppant performance and comparing
coarser Northern White sand and local, finer sand, Preferred led the
industry shift away from Northern White. The Company closed its Northern
White mine in Minnesota in 2015 and sold its Blair and Bloomer,
Wisconsin mines in 4Q 2017. Preferred’s renewed focus on local sand
positions the Company to have a unique multi-basin approach. This
strategic localization strategy is driven by the Company’s goal to drive
down costs for customers.

These events continue a plan put in place nearly three years ago for the
Company to be the lowest cost-landed-at-well (CLAW) regional and
in-basin local provider of frac sand in the most prolific basins in the
United States.

For more information about Preferred Sands, visit www.PreferredSands.com.

About Preferred Sands

With strategic regional plant locations in Arizona and Nebraska, as well
as an in-basin plant in South Texas and a second expected in West Texas, Preferred
Sands services exploration & production and oilfield service
companies throughout North America. The company is continuously
recognized for its environmental responsibility and achievements in
health and safety as an industry-leading operator.

Preferred Sands is also one of North America’s leading manufacturers and
providers of high-quality and innovative proppant technologies.
Preferred’s innovative proppant technology solutions include Preferred
Polymeric Proppants, an advanced downhole coated proppant technology
designed for maximum production efficiency; FloPRO
PTT™, proppant transport technology designed for superior proppant
distribution; and DustPRO™,
a leading dust prevention technology designed to reduce airborne
particles during all sand transfer points. These pioneering products
have earned Preferred world-wide recognition as a leader in innovative
and sustainable technologies throughout the oil and gas, chemical, and
technology industries.

The Company’s various awards include a finalist for the World Petroleum
Council’s Technological Development recognition in 2017; 2014 CPI
Polyurethane Innovation Award for Improving Oil Productivity; 2014 R&D
100 Award for Improving Oil Productivity; 2013 Oil & Gas Awards for
Environmental Initiative of the Year, Industry Supplier of the Year, and
Excellence in Environmental Stewardship; and 2012 Ernst & Young
Entrepreneur of the Year in Energy, Cleantech, and Natural Resources.

For more information about Preferred Sands, visit www.PreferredSands.com.

Contacts

Preferred Sands
MEDIA CONTACT:
Matt Goldstein,
484-385-2953
[email protected]