CANADIAN SILICA INDUSTRIES APPOINTS DISCO AS EXCLUSIVE DISTRIBUTOR
PEACE RIVER, Alberta – September 01, 2009
Canadian Silica Industries (“CSI”), a supplier of silica sand products located in Western Canada, has signed an exclusive distribution agreement with Diversified Industrial Service Company (DISCO) Inc., a Calgary, Alberta-based distribution and logistics company. The terms of the agreement cover 100 Mesh and 20/40 products used primarily in hydraulic fracturing operations by oil and gas companies. Both products comply with API standards and have been successfully deployed in field operations in conventional oil and gas, as well as unconventional shale, fracturing stimulations.
“We are delighted to be working in partnership DISCO, as they bring a new approach to minerals distribution that offers exciting opportunities for our sand,” said Scott LaPrairie, President and CEO of the LaPrairie Group of Companies.
Located in Peace River, Alberta, the CSI deposit is the closest source of fracturing sand to the Horn River Shale Formation in Northeast British Columbia. This strategic location makes it ideally situated for companies performing fracture stimulations at what is Canada’s largest natural gas shale field.
“The key market for us right now is the Horn River Basin. We are the indigenous source of sand for the play, and DISCO’s innovations in handling techniques allow our sand to be delivered direct from mine to well site without expensive re-handling in Fort Nelson,” continued LaPrairie. “This means our sand can be delivered not only cost-effectively, but with the added flexibility and reliability that comes from having a simple supply chain,” concluded LaPrairie.
Canadian Silica Industries is a member of the LaPrairie Group of Companies and holds extensive mining and operational permits in North-central Alberta. The key deposit is located approximately 10km north of the town of Peace River. The mine and processing plant has current annual production capacity of 500,000 tonnes of silica sand.
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