Mammoth adding frack spreads, restarting sand mine due to demand

By Luke Geiver | February 15, 2017

Customer demand has inspired Mammoth Energy Services, an Oklahoma-based oil and gas industry service firm, to order more pressure pumping equipment and start-up a Wisconsin frack sand mining site sooner than planned. The company has ordered an additional 57,500 horsepower and associated equipment it believes will arrive in June. In November 2016, Mammoth also ordered 75,000 Hhp and associated equipment that it expects to have in six weeks. The new horsepower ordered cost roughly $500/hp, well below the $1,000/hp historical average, according to the company.

“We have thoroughly examined distressed equipment alternatives and believe new equipment is the better alternative and that Mammoth’s clients recognize the value of new equipment to meet their requirements and high standards of performance,” Arty Straehla, CEO of Mammoth said.

The new frack spreads will be sent to the SCOOP/STACK play in Oklahoma, with other equipment being sent to the Permian or Eagle Ford based on demand, the company said.

Because of price and demand increases for sand, Mammoth is restarting its sand processing facility in Wisconsin six months ahead of schedule. The Muskie facility, an indoor processing site, has a capacity to process 700,000 tons per year. This month the facility will being processing raw sand with sales coming shortly after.

Gulfport Energy, an SCOOP/STACK-focused operator, has contracted for three frack spreads through 2018.

Mammoth has a portfolio of companies, ranging from sand logistics firms to oilfield housing.