DeepRock Disposal / Fountain Quail Energy Services Merger

MARIETTA, OH, USA, October 15, 2020 /EINPresswire.com/ — DeepRock Disposal, LLC. (“Deeprock”), and Fountain Quail Energy Services, LLC (“FQ”) today announced the closing of a merger of the salt water disposal (SWD) assets of FQ with Deeprock’s Marietta, OH based salt water disposal facility. The combined company, which will operate under the name DeepRock Disposal, immediately becomes one of the largest SWD operators in the Appalachian Basin. The combined twelve wells, at five class II UIC facilities located in Ritchie County (WV), Dexter City (OH), Marietta (OH), Portland (OH), and Reno (OH), provide a total capacity of 50,000 BBLS of water per day, with several permits in hand for future capacity expansions. Additionally, the merger combines two well positioned offload sites for produced water via barge in the Appalachian basin, creating a single touchpoint for all customers anxiously awaiting the cost-saving solution of disposal via barge. Management anticipates beginning to offload barges in Q1 of 2021 at one of their facilities and will have the second ready for offtake by mid- 2021, creating redundancy and scale.

Dean Grose of DeepRock commented “The merger of these two entities creates the kind of scale and competitive advantages which will benefit not only our combined companies, but also our entire complimentary customer base. Our combined disposal capacity and permits in and around the basin will allow us to provide even more flexibility to our current customers in the area while the option for barging will open us up to a whole new base of customers who have been seeking alternative methods of produced water transport due to their distance from viable disposal facilities”.

Kirk Trosclair of FQ stated “With our planned build-out of barge offload facilities in both Marietta and Portland, OH, we will be able to reach an entirely new base of customers or new base of assets at an incredible scale, with offload capacity in Marietta and Portland combined already over 30,000 BBLS / day. This type of scale and ability to move water via barge will be a cornerstone of our company’s future success and will help drastically lower the all-in cost of water disposal for operators across the basin. Additionally, our barging of produced brine will create safer roadways in our community by eliminating the need for dozens of long-haul trucks every day and further reductions as we move to pipe water into our on-loading terminals.”

The combined entity management team brings experience in SWD operations, natural gas and oil production operations, and total water treatment solutions. Brian Chavez will serve as CEO of the combined company. Meanwhile, Kirk Trosclair will serve as Chief Business Development Officer and Dean Grose as Chief Strategy Officer.

Kirk Trosclair
Fountain Quail Energy Services, LLC
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Source: EIN Presswire