SCOTT, La., Oct. 6, 2010 (GLOBE NEWSWIRE) -- ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), a manufacturer, blender, distributor, and marketer of specialty chemicals and analytical services to the oil and gas industry, announced today that it has signed a master service agreement with Black Elk Energy to provide its product and services to initially a total of 5 platforms containing a total of 46 wells.
Through this agreement, the Company estimates an increase in revenue of 6% on an annualized basis. These preliminary revenue estimates do not include any expanded services with Black Elk Energy's other production wells that ESP Resources may gain as a result of its continued performance.
"This agreement further underscores the unique aspects of the product and services we offer to operators of production wells in the oil and gas industry. There are highly distinctive properties to each of the wells of our clients, and our site specific materials and services have proven to be essential to relationships and agreements like this with Black Elk Energy," stated David Dugas, President of ESP Resources. "Furthermore, we expect that additional testing, as well as our performance on our current service wells with Black Elk Energy will expand our business with them toward a significant number of other production wells in the future," Dugas further stated.
About Black Elk Energy:
Black Elk Energy is an independent oil and gas company headquartered in Houston, Texas. The company is dedicated to creating returns in oil and gas through acquisition and exploitation, and focuses on North American clean burning natural gas. Black Elk Energy currently operates multiple properties both onshore and offshore in State and Federal waters and holds an aggregate interest in over 360 thousand acres and more than 500 wells. More information can be found by visiting Black Elk Energy's website at www.blackelkenergy.com.
About ESP Resources, Inc.:
ESP Resources, Inc. is a publicly-traded petrochemical company (OTCBB:ESPI) headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. ESP Resources supplies retail and wholesale specialty chemicals for a variety of oil field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, ESP Resources distributes its product line throughout the Gulf Coast region of Louisiana, Texas, Mississippi, and Alabama, both onshore and offshore. The wholesale division of the Company supplies specialty chemicals to several retailers operating in West Africa. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's website at www.espchem.com.
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.