LWP Technologies Ltd (ASX: LWP) is an Australian oil and gas technology company focused on developing a next generation, fly-ash based, proppant for use in hydraulic fracturing (fracking) of oil and gas wells globally.
Proppants are a major input and cost item in the fracking process and represent a multi-billion dollar global market annually. Proppants are a sand-like commodity used to ‘prop’ open fractures in shale rocks and unconventional oil & gas formations which allows oil and gas to flow. LWP Technologies is seeking to commercialise its proppant as a cost effective, superior alternative to bauxite and clay based proppants, typically used in fracking operations currently. The Company is finalising construction of a pilot scale proppant manufacturing plant in Brisbane, Australia, and plans to commence production in the near future. The Company then plans to seek joint venture partners and/or licensing agreements to commercialise its proppant product, and deliver significant returns to shareholders.
LWP Technologies was formerly listed on the ASX as Coretrack Ltd (ASX:CKK) which agreed to acquire Ecopropp in May 2014. The investment in Ecopropp provides exposure for LWP Technologies shareholders to the booming Hydraulic Fracturing market which has quadrupled in size in the last decade.
With many horizontal deep oil and gas wells now requiring approximately $1m to $3m worth of ceramic proppants during hydraulic fracturing (fracking), the board of LWP Technologies believes it is an opportune time to enter this rapidly growing market given the current industry wide focus of driving down input costs to counter reduced market selling prices for oil & gas.
The unique proppant developed by LWP Technologies has the potential to lead the industry, given its cost effectiveness, ultra-light weight and ability to withstand the very high pressures and temperatures in deep oil and gas wells.
Image Credits: lwptech.com