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TOPIC: ESESD - Eco-Stim Energy Solutions Inc.

ESESD - Eco-Stim Energy Solutions Inc. 6 years 6 months ago #1717

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Eco-Stim Energy Solutions Signs Letter of Intent for Well Stimulation Equipment Financing

HOUSTON, Jan 09, 2014 (GLOBE NEWSWIRE via COMTEX) -- Eco-Stim Energy Solutions, Inc. (OTC:ESESD) ("EcoStim") announced today that its Board has approved and the Company has signed a letter of intent with an independent third party lender to provide a minimum of $4 million in financing towards an equipment package currently being procured for EcoStim's growing operations in Argentina. The equipment will serve as collateral under the three year loan agreement. During the period while the loan is outstanding, EcoStim will be required to make quarterly interest payments with the principal due at the end of the three year period unless mutually extended for up to two additional years. The equipment being procured consists primarily of pressure pumping and related equipment. This equipment will be used to conduct operations under the three year agreement (i.e. letter of intent) previously announced on December 19, 2013. The financing for the equipment is expected to close in the first quarter of 2014. The Company's Board of Directors has also approved a purchase order to acquire the equipment required for the letter of intent mentioned previously.

Eco-Stim's President and CEO Chris Boswell stated, "This financing is a key milestone for our initial well stimulation operation which is expected to start in the second quarter of this year. We are pleased with the terms of this financing and look forward to working with the lender to complete the transaction as soon as possible. Financing the majority of our equipment needs with minimal dilution to our shareholders has been a key priority for the management team. We believe there are many strong growth opportunities to bring leading unconventional technologies to the international markets and look forward to supporting our customers as they strive to economically develop these valuable assets, starting with the world class Vaca Muerta shale play in Neuquen, Argentina."
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ESESD - Eco-Stim Energy Solutions Inc. 6 years 6 months ago #1714

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(Previously VIGS before reverse merger)

Press Release...

On December 30, 2013, in connection with a lease financing transaction, Eco-Stim Energy Solutions, Inc. (the “Company”), through one of its subsidiaries, entered into an Equipment Sales Agreement (the “Sales Agreement”) with Impact Engineering, A.S. (“Impact”), a Norwegian related party company controlled by the Company’s Chairman and one of its directors. Under the terms of the Sales Agreement, the Company’s recently acquired coiled tubing asset package, which consists primarily of a coiled tubing unit and various pieces of complementary equipment (the “CTAP”), was sold to Impact for $3,500,000 in cash. The Company doesn’t expect to record a material gain or loss on the transaction.

Simultaneous with the sale of the CTAP, Impact entered into a 60-month lease agreement (the “Lease Agreement”) with Tango Rock S.A. (“Tango”), an Argentine company established to conduct business in Argentina. Tango is currently owned by two lawyers retained by the Company. The Company has an agreement in place to acquire all of the shares of common stock of Tango for a nominal amount and expects for the ownership change to occur during the first quarter of 2014. In addition, through contractual arrangements with Tango, the Company effectively controls the limited operations of Tango. The terms of the Lease Agreement requires Tango to make monthly payments of $81,439 commencing on February 1, 2014, to prepay the first 12 monthly payments ($977,267) and to maintain a minimum prepaid balance of $488,633. In addition, the Company has also guaranteed all lease payments under the Lease Agreement and made the required prepayment of $977,267 on behalf of Tango.

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