Applied Minerals Inc AMNLQ

new player in proppant business - buy

[vssmnn]

The Bakken shale play primarily receives its ceramic proppants used during hydraulic fracturing from Arkansas, Alabama, Georgia or China. A recently formed agreement between Applied Minerals Inc., a global supplier of clay, and OPF Enterprises LLC, a ceramic consulting firm, could add Utah as a ceramic proppant supplier to the list of those that serve the Bakken.

Applied Minerals owns and operates the Dragon Mine, a halloysite and clay mine in Utah. The company has assessed the possibility of mining out resources used to produce ceramic proppants. According to the company, that research has shown that mine materials exist that could be used to produce ceramic proppants with attractive crush strengths, permeability rates and gravity characteristics, “that meet or exceed certain performance metrics of several competing ceramic-based products.”

According to Applied Minerals, shale drillers are continuously looking for ceramic proppants that are lighter, stronger and feature better conductivity. A lighter proppant helps to ensure its ability to fill in the fracture cracks while reducing the amount of water or chemicals needed during the process. Stronger proppants help keep the fractures open at greater depths and, higher permeability helps increase the flow of oil or gas as either feeds through the fracture network.

Through the recently formed agreement, both companies will work to optimize a new range of ceramic proppants while also looking for a partner to commercialize a proppant manufacturing operation. The Dragon Mine has five different sections that could be used to produce the materials needed for ceramic proppant production.

https://thebakken.com/articles/393/utah-mine-looking-to-become-major-proppant-supplier-to-bakken