HOUSTON, TX and NEUQUEN CITY, ARGENTINA -- (Marketwired) -- 06/26/17 -- Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) ("EcoStim" or the "Company") announced today that it has now completed four wells under its contract in Oklahoma and nearly completed its first full quarter under a two-year contract in Argentina. As a result of the Company's increased utilization in both geographic markets, EcoStim expects its revenue in the second quarter of 2017 to be within a range from $8.4 million to $9.6 million, compared to $2.6 million for first quarter of 2017. Further, management believes that its revenues for June, 2017, the first full month with activity in both of its geographic markets, should exceed $4 million. The Company's well stimulation crew in Argentina is expected to execute over 55 well stimulation stages during the second quarter of 2017, compared to 17 stages in the first quarter of 2017. The Company's well stimulation crew in Oklahoma is expected to execute more than 90 well stimulation stages in the second quarter of 2017, following the start-up of operations in late May, 2017, compared to zero stages in the first quarter of 2017. The Company's turbine powered pumping system has been performing consistent with the Company's operational expectations while being fueled with compressed natural gas.
The Company's revenues in any fiscal quarter are significantly impacted by its customers' drilling and completion activities, which in turn are significantly dependent on commodity prices. If the Company's customers in Argentina and Oklahoma continue their current drilling and completion activities and the Company's operational performance remains in line with the criteria set forth in its contracts, the Company believes that revenues in the third quarter of 2017 will increase over the second quarter. In Argentina, the Company's expected revenue is supported by a two-year contract that commenced on April 1, 2017 while the expected revenue in Oklahoma is supported by a one-year contract that commenced on May 23, 2017. As previously disclosed, our contract in Argentina has certain take or pay features, while our contract in Oklahoma is an exclusivity contract that provides the Company with the opportunity to service the customer's completion activities in a defined region, but does not restrict the customer from curtailing its drilling plans.
At the shareholder meeting on June 16, 2017, the Company's shareholders authorized the conversion of our convertible debt into common stock. As a result of that conversion, the Company no longer has any outstanding long-term debt.
J. Chris Boswell, EcoStim's President and Chief Executive Officer commented, "Our 2017 growth has been a tremendous team effort, enabling us to achieve success in both of our markets. I would like to express my thanks to our team in Argentina for their hard work as well as congratulate our team in Oklahoma for a very strong start-up. I am very pleased to report that for the first time since the Company's first well stimulation job was completed in December 2014, we are working under two significant contracts that provide management with enhanced financial and operational visibility. We remain focused on our goal of enhancing our strategic position in both geographical markets through new customer contracts and expansion of capacity."
About Eco-Stim Energy Solutions, Inc.
EcoStim is an environmentally focused oilfield service and technology company providing well stimulation and completion services and proprietary field management technologies to oil and gas producers. EcoStim's methodology and technology offer the potential in high cost regions to decrease the number of stages stimulated in shale plays through a process that predicts high probability production zones while confirming those production zones using the latest generation down-hole diagnostic tools. In addition, EcoStim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions and surface footprint. EcoStim seeks to deliver well completion services with better technology, better ecology and significantly improved economics for unconventional oil and gas producers worldwide.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. In addition, many of the forward-looking statements in this press release are substantially dependent upon our customers continuing to maintain their current drilling plans, which will depend upon our customers' financial condition, their response to change in commodity prices and other factors that are outside of our control. As referenced above, our contract in Argentina has certain take or pay features, while our customer in Oklahoma is under no obligation to continue to use our services under our contract and has no payment obligations to us in the event that our customer curtails its drilling plans.
Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.