Service & Supply | Oilfield Services

Double Crown's Oilfield Service Division Poised for Growth

Share Print Bookmark    |    Tuesday,June 18,2013

Double Crown Resources Inc. reported significant progress with some of the major projects currently under development. The projects are all focused on the company's new business venture of oilfield service & supply which is in addition to the gold & mineral mining of Double Crown's original business plan.

President and CEO Jerry Drew also wishes to address shareholders directly at this time and states, "Everyone who is invested in Double Crown Resources should know that it is our primary objective to deliver real world results that will translate into increasing, long term shareholder value for DDCC. All of our management team members have been committing the full measure of their time, talents and resources for many months so that we can meet that objective for our investors. The progress report we are issuing today gives a brief overview of our most important projects and developments to date. We intend to keep our investors informed with continued announcements as all of our plans move forward."

Aggregate Material Transport System

The first production unit of Double Crown's original design for a new, single-transfer aggregate material transport system called Transprop AGG has been completed. The manufacturing company is presently addressing some finishing details after which the unit's working form will be finalized. Patent protection for the Transprop AGG's unique specifications was obtained in April of 2013 and the design is currently in a patent pending status. Arrangements for the commercial introduction of Transprop AGG units are being made at this time. Double Crown management is in negotiations for Transprop AGG mass production to be done at a large-scale manufacturing facility that is ready for our intended initial production run of 1000 units with a planned ramp-up to 4000 units. This production run is being planned to meet the immediate demands of several customers who have expressed their interest to lease Transprop AGG containers to transport large volume shipments of aggregate materials. Double Crown management is also working with several lending institutions to finance the Transprop AGG system lease contracts.

Intended Lease of Strategic Facility to Process Fracturing Sand & Barite

Double Crown management is currently working towards a lease agreement on a large, strategic facility to be used in the drying and screening of hydraulic fracturing (frac) sand as well as processing of the mineral barite, both commodities needed by modern oil drilling operations. This established and well situated facility will also allow Double Crown to store large numbers of the Transprop AGG containers to provide the option for shipment via rail, barge or truck. The transload terminal where the facility is located will require some upgrades and improvements for which we are currently pursuing financing arrangements backed by the value of Double Crown's pending supply contracts. There are no dilutive equity financing plans being considered.

Procurement of Mining Commodity Allocations

Double Crown is pleased to report now that the company has completed procurement on several different large volume allocations of both raw and finished materials needed by oilfield drillers. These materials are available for sale at the current time and our representatives are working to finalize the first sales contracts. More information, details and contract values will be provided on completed contracts as soon as possible. All of the commodity supply projects under current development are for long-term, high value contracts which can deliver positive cash flow and profits to the company.

JV to Process Guar Gum & Related Chemicals for Drilling Operations

At this time, Double Crown is additionally exploring a possible joint venture opportunity with another company which is set up to slurry guar gum, a plant-based material used in oil drilling and also some related chemicals. This project has the potential to further advance our sales capability and allow Double Crown to serve its customers as a full, one-stop shopping source for all oilfield support operations.