NAFS (North America Frac Sands, Inc.) is a development stage corporation, which owns renewable land leases with the right to extract frac sand from substantial mineral deposits located in the Province of Saskatchewan, Canada. Frac sand is used as a proppant by the oil and gas industry to stimulate and increase the production of oil & natural gas from wells without which little or no production would be possible.
Over the past year, NAFS has spent over $200,000 leasing, qualifying and quantifying the sand deposit and has obtained a third party compliant NI 43-101 Technical Report which estimates the inferred resource at 8.6 million tons of resource. The report indicates that the sand deposit meets the API standards for the industry.
The site location is in the middle of a large and growing market where customers are within a 120 to 400 mile radius of the plant. As a result, customers can collect the product at the plant gate and avoid the need to package and transport the product to market.
Canada was one of the first countries to use frac sand in the completion process of oil & gas wells and the use of the hydraulic fracing technique has increased significantly in the last ten (10) years particularly with the increase in the drilling of horizontal wells with multistage completions. This in turn has the resulted in well service and oil & gas companies looking for new sources of frac sand to meet increasing demand with the requisite characteristics mandated by the API and industry.
Most of the frac sand utilized in the oil and gas industry in Canada is mined and distributed from Wisconsin in the United States to Canada. There is a shortage of rail cars in Canada available to transport frac sand.
The Company’s strategy is to achieve a significant presence in the frac sand industry by:
The Company has: