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Eco-Stim Tapped for Neuquen Basin Stimulation, Completion Ops

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Eco-Stim Energy Solutions, Inc. has signed a letter of intent to provide its technology focused well stimulation and completion services to an exploration and production company in the Neuquen province of Argentina.

Under the terms of the agreement, this customer will exclusively utilize EcoStim well stimulation services for its full 2014 work program, with the exception of two fields. In addition, the exclusive agreement extends into 2015 & 2016 for the customer's full work program. The work is scheduled to begin in the second quarter of 2014, subject to certain conditions. Based on the drilling rigs contracted by the customer and the anticipated time to drill each well, EcoStim estimates that it will be conducting well stimulation work and coiled tubing efforts on approximately 100 well stimulation stages depending on the timing of operational start-up. The price of each stage will be based on market prices which will be agreed to in the commercial contract. EcoStim management estimates that prices for this service ranged between $180,000 and $300,000 per stage this year. The parties expect to promptly enter into a definitive commercial contract which must be completed within 120 days.

EcoStim's President and Chief Executive Officer Chris Boswell stated, "This is an excellent opportunity for EcoStim to establish operations in the rapidly growing market in Neuquen, Argentina where the EIA estimates that the Vaca Muerta shale contains approximately 27 billion barrels of recoverable oil and gas. This region of Argentina is now attracting global attention as the highest potential shale play outside of the United States. We have already established operations in the Neuquen province and look forward to supporting our customer's needs by providing best in class technology and an 'A-team' operations group."