Scottsdale 11/11/2014 8:00:00 PM
News / Stocks

QualityStocks News - Intercept Energy Services (IESCF) Offers Investors Unique Access to Booming Shale Revolution

QualityStocks would like to highlight Intercept Energy Services, Inc. (OTCQB: IESCF), an innovative Oilfield Services Firm (OFS) primarily focused on the deployment of its proprietary BIG HEAT frac water heating technology used by oil and gas exploration and production companies operating in Canada and the United States. The company also specializes in unconventional energy extraction and related services such as oil sands processing, oilfield equipment, and oilfield waste disposal and recovery of reusable products from waste.

In the company’s news,

Intercept Energy Services offers a multi-faceted approach to investors looking to benefit from the fracking boom. The fracking boom and shale revolution has brought with it a substantial oil and gas field services market which is estimated by IBISWorld as accounting for upwards of 47% of the overall industry’s revenue generation. Their report out in June of this year also indicates that the oil & gas field services market posted a handsome 11.5% annual growth rate over the last five years and now generates roughly $114B a year, providing good jobs to over 270k people. Global Water Intelligence places the water management service and technology segment alone at around $40B a year and projects a 6% CAGR moving forward. Massive Houston-based oilfield services players, Schlumberger (NYSE: SLB; $99.18) and Baker Hughes (NYSE: BHI; $51.89), certainly are experiencing the upside, with the right mix of offerings allowing them to take increased profit margins across their interests in North America, with Q1 revenues of $11.2B (up 5.7%) and $1.9B (up 58.3%) respectively.

Oilfield services is considered by many investors to be the industry’s low-risk sweet spot, as operators in this market generally turn a profit irrespective of whether or not a given play is successful. In the U.S. alone onshore rig counts have climbed 3% in the last quarter, topping out at a two year high of 1.87k rigs in action, with the Permian Basin in Texas a notable front-runner, posting 21% rig count growth year over year despite sagging oil prices. There seems to be no end in sight for energy recovery growth and RBC Capital Markets’ estimate of over 20k horizontal wells being drilled in the U.S. this year (add another 1k to that figure for next year according to RBC) means that the oilfield services sector has their work cut out for them.

One of the more attractive and share price-accessible targets for investors to take a look at in this space is Intercept Energy Services (OTC: IESCF; $0.0375). The company’s core, patent-pending superheater technology readily outperforms typical gas and diesel-fired systems, with virtually 100% of heat input transferred to the water. More importantly, the system has several notable safety advantages over the industry standards when it comes to heating frac water, while still achieving superior performance compared to other super heaters, thanks to the company’s proprietary design advancements.

This technology has the goods operators are looking for, with a super efficient design that generates almost no radiant heat, has 23 MMBTU output capacity, a 12 plus hour supply at full burn and a 2m3/min volume temperature increase capability of up to 40 degrees Celsius. Unlike other products on the market, Intercept Energy’s systems do what it says on the tin; because after all, it doesn’t matter what the unit’s BTU rating is if most of the heat simply ends up wasted right out the stack. Moreover, the system’s numerous, state-of-the-art, redundant safety shutdowns and controls, as well as the company’s long-standing commitment to job site safety, means better overall site performance and a reduction in (or outright avoidance of) accident-associated and inefficient system-related downtimes.

Intercept Energy’s system has no exposed flame and the entire system is safe to touch (yet requires no insulation), without a single place (“hot spots” as they are typically called) on the entire unit where workers can put a hand and get burned. The dangerous possible ignition of flammable vapors, a constant hazard for operators, is virtually eliminated with the design. IESCF proudly meets and even exceeds provincial/federal standards when it comes to both occupational health & safety, as well as environmental impact. The company’s super heaters not only burn fuel cleanly/completely, the compact, rig-mounted system leaves no footprint behind (no icing or system-derived emissions) when the job is over.

The company also has an excellent fleet of six (three more being built at last count) thru-tubing, open-mouth power tong units (two each of air and electric over hydraulic driven, diesel-powered units and two more diesel over hydraulic driven units) that are field-safety proven and yet are faster and easier to operate than the industry standard. These babies can bite on small operating diameters of 1-11/16” to 3-1/2” pipes and can join pipes of different diameters with ease. The units are packed in enclosed 16 foot trailers, coming complete with over 100 feet of hydraulic hose and are set up specifically for coil tubing applications (with the backup on top).

Primarily focused on their BIG HEAT system’s proliferation throughout North America, IESCF also has a developing secondary vector in oil sands processing, oilfield waste disposal, and recovering reusable products from oilfield waste.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.