Eco-stim Energy Solutions's Comment on Sales, Marketing and Customers
In October 2017, our second U.S. spread commenced operations in Oklahoma for
another independent E&P company. In November 2017, we negotiated an early
release of our first U.S. spread from our contract with our first U.S. customer
and have now deployed that spread to serve other customers consisting primarily
of independent E&P companies.
In Argentina, our customers have consisted primarily of international oil and
gas E&P companies including national oil companies, local privately-held
exploration and production companies and, on occasion, other service companies
that have contractual obligations to provide well stimulation and completion
services.
Customer demand for our services depends primarily upon the capital and operating
spending of oil and gas exploration and production companies and the level of
drilling activity in the regions we serve. We expect to continue to derive a
significant portion of our revenue from a relatively small number of customers
in the future. If one or more of our customers decided not to continue to use
our services, our revenue could decline significantly and our operating results,
financial condition and cash flows could be adversely impacted.
