ESP Resources Provides Update on Business and Operations
LAFAYETTE, La., Aug. 29, 2013 (GLOBE NEWSWIRE) -- ESP Resources, Inc.
(OTCBB:ESPI), an oil and gas services company, provided an update on its
business and operations.
David Dugas, President & CEO stated, "Our business has experienced significant
changes over the past six months as we have shifted our strategy toward
domestic operations and away from our costly international business
development. Without any expected near-term revenue from these international
endeavors, we had to significantly trim our overhead and refocus our efforts
on our existing production petrochemical business. In addition, a slowdown in
fracking activity by certain of our customers in and around our district
office in Arkansas and their shift to other shale regions caused our
completion petrochemical business to dip significantly. We are now recapturing
that completion petrochemical business, but do expect it will take some time
before we can see elevated levels."
Mr. Dugas went on further to state, "As we continue to refocus our sales
efforts, we are making significant operational and structural changes to lay
the groundwork for our future."
The Company has implemented the following operational changes during 2013:
*Operating personnel has been reduced from 55 at the start of the second
quarter to 36.
*Payroll has been reduced 39% since April of this year through reductions
in personnel numbers and salary adjustments of current personnel.
*Reductions in excess vehicle inventory have resulted in reductions of
insurance monthly costs and vehicle carrying costs.To date we have sold
10 of the 18 vehicles that we had for sale.
*Chemical inventory has been reduced and streamlined from a turnover of six
months on hand to now four months on hand resulting in decreased inventory
carrying costs.This will continue in the third and fourth quarters with a
goal to reduce to under three months on hand by the end of the year.
*The Company's sales efforts for the last 3 months have generated increased
revenues from organic customer growth in South Texas (Victoria and Pharr
districts) in the Eagleford shale trend.We plan to continue these efforts
in the third and fourth quarters.
*Payroll costs have been reduced amongst senior management via salary cuts
in order to share in the cost reductions being implemented company-wide.
*Sale of excess and non-performing assets and equipment began in the second
quarter and will continue into the balance of 2013, resulting in reduction
of monthly payments and interest expense.
The Company is implementing the following structural plans for the future
including the following:
*The Company is currently working on strategic investment opportunities
with a significant monetary foundation to execute a new and improved core
business strategy and a rededication to core business strength and new
expediential growth model.
*The Company is currently in discussion with several highly-seasoned and
industry experienced executive management candidates to strengthen our
*As part of the restructuring plan, the Company has committed to the
development of a sales strategy with the intentions of new sales personnel
and a revised sales campaign to increase its customer base, industry
exposure and increase revenue opportunities.
About ESP Resources, Inc.:
ESP Resources, Inc. is a publicly traded oil and gas services company
(OTCBB:ESPI) headquartered in The Woodlands, Texas.Through its subsidiaries,
the Company manufactures, blends, distributes and markets specialty chemicals
and analytical services to the oil and gas industry and also provides services
for the upstream, midstream and downstream sectors of the energy industry,
including new construction, major modifications to operational support for
onshore and offshore production, gathering, refining facilities and pipelines
designed to optimize performance and increase operators' return on
investment.The Company's senior management has over 100 years of combined
operating experience in the oil and gas services industry.More information is
available on the Company's Website at www.espchem.com.
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward looking statements" within the meaning of
the safe harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995.Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and
uncertainties.Forward-looking statements are based on current facts and
analyses and other information that are based on forecasts of future results,
estimates of amounts not yet determined and assumptions of management.Forward
looking statements are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "aims", "potential", "goal", "objective", "prospective", and
similar expressions or that events or conditions "will", "would", "may",
"can", "could" or "should" occur.Information concerning oil or natural gas
reserve estimates may also be deemed to be forward looking statements, as it
constitutes a prediction of what might be found to be present when and if a
project is actually developed.Actual results may differ materially from those
currently anticipated due to a number of factors beyond the reasonable control
of the Company.It is important to note that actual outcomes and actual
results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking
statements made in this press release.In evaluating these statements, you
should consider the risks discussed, from time to time, in the reports we file
with the U.S. Securities & Exchange Commission.For a discussion of some of
the risks and important factors that could affect the Company's future results
and financial condition, see the Company's Form 10-Ks and 10-Qs on file with
the U.S. Securities & Exchange Commission.
CONTACT: Frank N. Hawkins, Jr.
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