Hexion Specialty Chemicals’ Oilfield Technology Group Opens New Resin Coating Plant and Additional Transload Facilities
HOUSTON, Texas- (June 15, 2010) - The Oilfield Technology Group (OTG) of Hexion Specialty Chemicals, Inc., today announced the startup of a new manufacturing plant and the opening of additional transload facilities to provide resin coated proppants to fracturing service companies and operators in the oil & gas industry.
"Hexion is the leading supplier of resin coated proppants to the energy exploration industry and this expansion will increase our manufacturing and delivery capabilities to meet the growing requirements of our customers," said Hexion OTG Vice President Jerry Borges. "These new facilities are strategically located to provide product in proximity to where it is needed in the field. These investments demonstrate our continued commitment to the industry."
Hexion has commissioned the first production line in its new manufacturing plant in Cleburne, Texas, which produces its patented ValuBondTM curable resin coated proppant. This new plant along with its specially designed transload operation is well positioned to serve the surrounding Barnett Shale area. Exploration companies operating in the Barnett as well as other areas will now have access to a larger supply of resin coated proppants, including Hexion’s newly introduced ValuBond 20/40 mesh proppant.
In addition to the Cleburne transload facility, and to provide customers with an efficient and cost-effective supply of proppants, Hexion also has opened new proppant transload facilities in the following locations:
·Corpus Christi, TX
·Rock Springs, WY
The Corpus Christi location serves the emerging Eagle Ford Shale play in south Texas, while to the north, the Rock Springs facility primarily serves Wyoming and Colorado. The Fairview transload facility supplies the rapidly developing Bakken play in Montana and North Dakota, while the Batesville transload supplies the Fayetteville Shale area in Arkansas.
Resin coated proppants are used in the hydraulic fracturing process to help optimize production from oil and gas wells by maximizing fracture flow capacity from the reservoir to the wellbore. Technological innovations and Hexion’s introduction of enhanced materials have expanded the use of resin coated proppants into unconventional reservoirs that feature complex and hard to reach geological formations.
"We are committed to having the most extensive proppant supply network in the industry to deliver our expanding portfolio of patented products to customers," Borges said. "We also continue to provide educational programs that leverage OTG’s many years of fracturing experience to inform the industry about new methods of utilizing proppants to increase value and well production. The opening of this new plant and strategically located transloads are the first of many milestones related to achieving our ongoing expansion plans."
About Hexion’s Oilfield Technology Group
Hexion Specialty Chemicals’ Oilfield Technology Group is a global leader in resin coated proppants for use in hydraulic fracturing. Hexion pioneered the technology more than 20 years ago to help customers optimize fracture flow capacity and improve post treatment well production. Hexion is committed to enhancing its industry leadership and meeting its customers' specific application needs with a total solutions approach of quality products and services. Additional information is available atwww.hexion.com/oilfield
About Hexion Specialty Chemicals
Based in Columbus, Ohio, Hexion Specialty Chemicals serves global industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Specialty Chemicals is controlled by an affiliate of Apollo Management, L.P. Additional information is available atwww.hexion.com.
Forward Looking Statements
Certain statements in this press release are 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. Forward looking statements may be identified by the words "believe," "expect," "anticipate," "project," "plan," "estimate," "will" or "intend" or similar expressions. Forward-looking statements reflect our current views about future events and are based on currently available financial, economic and competitive data and on our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our markets, services, prices and other factors as discussed in our 2009 Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission (SEC). Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as the current credit crises and economic downturn and their related impact on liquidity and the industry sectors we serve, or an interruption in the supply of or increased pricing of raw materials; competitive factors such as pricing actions by our competitors that could affect our operating margins; and regulatory factors such as changes in governmental regulations involving our products that lead to increased manufacturing costs and environmental and legal matters as described in our 2009 Annual Report on Form 10-K and in our other reports filed with the SEC.
R. Steve Verboom
Oilfield Technology Group
+1 281 646 2831 phone
Peter F. Loscocco
Hexion Specialty Chemicals, Inc.
+1 614 225 4127
Director, Investor Relations
Hexion Specialty Chemicals, Inc.
+1 614 225 2223