#USA #Englewood #DJ Basin #frac sand #Apex 70 Sand

Apex 70 Sand's Ambitious Venture in the DJ Basin

In a significant development for the energy sector, Apex 70 Sand, LLC, a spinoff of the well-known Apex Petroleum Engineering, Inc., has secured the Use by Special Review (USR) permit from the Weld County Board of County Commissioners. This permit enables the company to advance their plans for a state-of-the-art frac sand facility with a staggering capacity of 2 million tons per year. This move is expected to transform the frac sand landscape in the DJ Basin.

Quality Reserves and Logistics Challenges
The DJ Basin has long faced challenges concerning the quality and availability of frac sand, crucial for hydraulic fracturing. David Bieber, a geologist and mining operations expert, pointed out that Apex 70 has already tackled critical issues including securing quality reserves and navigating the complexities of high-capacity permitting and water resource accessibility.
The company’s strategy also aims to mitigate transportation costs, a significant hurdle when sourcing frac sand from out-of-basin areas like Northern White sand, which burdens operators with high shipping fees per ton.

In-Basin Supply Demand
The push for an in-basin frac sand solution has been fueled by an increasing demand that local supply has struggled to meet. John D. Harkrider, co-founder of both Apex and Apex 70, emphasized the importance of their facility's location, infrastructure, and innovative plant design. Together, these elements will allow the company to eliminate excess costs and position itself as a crucial supplier in the region.
"With a combination of local sourcing and strategic logistics, we expect to be the next reliable player in this market, supplying high volumes of frac sand directly where it's needed most," said Harkrider.

Reuniting a Proven Team
This project marks a remarkable reunion of the core team behind Apex Petroleum Engineering. Co-founders Harkrider, Bill Anthony, and Mitch Kniffin have decades of combined experience in the energy services industry and are prepared to leverage their knowledge in this new endeavor. Anthony has designed hydraulic fracture treatments for clients across four continents, bringing invaluable insights into operational nuances that operators are currently facing in the field.

The collaborative efforts have also attracted a diverse team with extensive backgrounds in development, construction expertise, proppant industry sales, and large-scale mining operations. Todd Kaul, another crucial member of the team, highlighted that nearly 40% of proppant used in the DJ Basin currently comes from outside the area, putting operators at a competitive disadvantage. With the establishment of Apex 70, the goal is to provide a local and cost-effective solution to meet the regional demand for frac sand.

Future Prospects and Market Impact
Looking ahead, the founders of Apex 70 Sand are optimistic. Their approach not only promises to fill the gap in local frac sand supply but also aims to enhance the efficiency of hydraulic fracturing operations within the DJ Basin. As such, this initiative aligns perfectly with the industry's push for sustainable and economically viable solutions.

As the workforce begins to assemble and the groundwork is laid, all eyes will be on Apex 70 Sand as they seek to redefine frac sand logistics and supply dynamics in this key energy-producing region. With the expertise of its founders and a robust business plan, the company is poised to become a game-changer in the frac sand market.

For further details, stakeholders can reach out via email to learn more about this innovative venture.