SCOTT, La., Feb. 1, 2011 (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 begun providing production chemicals to three recently completed wells for Cinco Resources, Inc. ("Cinco") in the Hawkville field of the Eagle Ford Shale trend. The pipeline requirements necessitate a minimum level of contaminates for the three wells. The Company's chemical supply program is designed to reduce the contaminants below that level to facilitate the sale of the oil and gas produced from each of the wells without the use of additional sweetening plant facilities.
"While this work with Cinco begins with a relatively small number of wells, the chemical usage will be robust and provide a considerable impact to our sales in our Mission, Texas service region," stated David Dugas, President of ESP Resources. "We expect Cinco to be a great partner and anticipate our top line in our Mission district to increase over 30% in 2011 from this new business based on our current run rate. We believe that Cinco has sufficient leased acreage in their portfolio to drill in excess of 10 wells in the Eagle Ford Shale trend and that they are continuing their drilling activity as of this date," Mr. Dugas stated.
About Cinco Resources, Inc.:
Cinco Resources, Inc. is an independent oil and gas exploration and production company based in Dallas, Texas. Cinco's operations are primarily natural gas directed, and focused on two key natural gas producing regions of the United States including South Texas and the Arkoma Basin. Cinco's activities in the Arkoma Basin of Western Arkansas and Eastern Oklahoma primarily target development of the Woodford Shale. In South Texas, Cinco's primary focus is on conventional objectives in the over-pressured sections of the Frio and Wilcox formations. Additionally, Cinco acts as a contract operator and management for Cima Resources, Inc. ("Cima"), a related entity engaged in the development of the Eagle Ford Shale play in South Texas. Cinco conducts its operations through various wholly owned subsidiaries including Cinco Natural Resources Corporation, Camden Resources, LLC and Sedna Energy, Inc. More information is available on Cinco's website at www.cincoresources.com.
About www.espchem.com/">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, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, 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.