Resource World Magazine

64 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 7 producers. LNG exports are up 369% this year to date and the widening of the Panama Canal provides a strong impetus for accelerated traffic to key Asian markets where power demand growth and LNG appetites are expected to be stronger as new markets develop in Malaysia. Indonesia, Thailand, Pakistan etc. to join more traditional markets in China, Japan, South Korea and Taiwan. Geopolitics is the unknown factor, said Lawrence, with Brexit, the US election, OPEC and Russia likely to play supply side roles along with eager producers like Iran, Libya, Nigeria and Iraq who need to push more product into global markets due to their bud- getary reliance on it. Lawrence predicts oil will hover in the $40-$60 range in the next year "with ample room for volatility," while natural gas should range from $2.15-$3.50. CAPP sees great promise in LNG, especially now that Pacific North West LNG's Woodfibre Project near Prince Rupert on British Columbia's west coast has received regulatory approval and passed the financial investment decision (FID) hurdle. "The Woodfibre FID was a positive sign to the confidence of global investors interested in Canada," said Mueller, explaining that it gives Western Canada competitive options in the global marketplace. "During CAPP's meetings with government officials in India, we were informed that they are interested in Canadian natural gas as a complement to renewable energy's intermittent nature. This represents an excellent opportunity as the world transitions to a lower-carbon future and Canada realizes its role in that future." But, he added, while LNG would be a huge boost for western Canadian natural gas producers, there are other opportunities that could have a positive effect on supply. "Western Canadian supply is a world-class resource developed with some of the most stringent regulations on the planet," Mueller said. "This means Canada is sitting on a very real opportunity to be a global supplier of responsible energy for the future; but in order to do so we need to move forward with LNG projects." n Select Sands mining arkansas silica sands for fracking by Bruce lantz Flying low under the cloud of recession that has plagued the energy industry for the past two years, some companies have found ways to grow nonetheless. Select Sands is one of them. Vancouver, BC-based Select Sands Corp. [SNS- TSXV; CLICF-OTC] is investing in mining silica sand (quartz), a special type of which is a key component in hydraulic fracturing. Not all sand is created equal. The fracking process requires sand that is spher- ical in shape that allows oil and gas to flow between the sand grains. Angular grains tend to fit together like a jigsaw puzzle, thereby impeding the flow. The company's 520-acre Sandtown prop- erty in northeast Arkansas, wholly owned by US subsidiary American Select Corp., is a major source of Tier 1 frac sand/industrial silica sand. Tier-1 silica sands are rare and required for more than 250 industrial and specialty products and proppants for oil and gas applications. The Sandtown property is just three miles from Highway 167, near a natural gas pipeline and about 15 miles from the nearest rail system. It has a competitive location advantage over the Wisconsin sand mines. It's 650 rail miles closer to the Texas/ Louisiana oil and gas plays, and the Houston port and industrial hub. That proximity has value because up to 60% of the product is lost in transportation by rail or truck. Plus, the spherical crystals can be degraded in transit, reducing their functionality. "Our…project's closer proximity to major markets in the US is one of its desir- able attributes. The project economics can be enhanced further with testing on the potential of the remaining 60% of the proj- ect and improved oil and gas prices." "The pre-tax Internal Rate of Return of 45% and the pre-tax Net Present Value of US $160 million on 40% of the property demonstrate a good economic potential," says Select Sands CEO Rasool Mohammad on the firm's website. The company is now mining frac sand at its Sandtown property which it sells for US $34.50/ton. Markets for granular silica sand include the oil and gas sector and industrial products, while ground silica (silica pow- der) is used in plastics, polishes, cleansers, glazes, textile fiberglass, precision castings, premium paints, specialty coatings, seal- ants, silicone rubber and epoxies. Select Sands has acquired wet and dry processing plants, including earth mov- ing equipment and clients, to produce the desirable Northern White 40/70 and 100 mesh silica sand products. The company's processing facilities can handle 600,000 tons of frac sand per year. A June 2016 Goldman Sachs report forecast frac sand demand will grow by 80% in 2017. The average well requires about 4,000 tons of frac sand. n Oil & g A s

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