Dakota Plains Holdings, Inc. (“Dakota Plains”), (OTCQB: DAKP) today provided an update on corporate activity and its Pioneer Rail Terminal expansion project with operations in New Town, North Dakota, which service Bakken and Three Forks related E&P activity.
The Pioneer Rail Terminal, a 192 acre site with two 8,300 ft. loop tracks each capable of 120 car unit trains, began loading cars and sending trains in January 2014. The state-of-the-art terminal was commissioned in December 2013, logged over 120,000 work-hours without a lost time incident, and was completed on time and under budget;
Current Pioneer Rail Terminal throughput is expected to average 38,600 barrels of oil per day in February, its highest rate to date. By comparison the annual average for 2013 was 24,000 barrels per day. Forecast throughput for the year is expected to average 45,000 barrels per day, comprised of joint venture-marketed and third party volumes;
The Pioneer Rail Terminal began receiving third party transloading volumes in January 2014 to supplement joint venture-marketed volumes. Going forward the Pioneer Rail Terminal can receive increased third party volumes;
Dakota Plains began managing the Pioneer Rail Terminal on December 31, 2013 and began consolidating the transloading joint venture balance sheet immediately and the remainder of the financial statements effective as of January 1, 2014;
Construction of the UNIMIN frac sand automated terminal, a 750,000 ton per year capacity frac sand storage and transloading facility announced in August 2013, remains on schedule for completion in May 2014. Comprising 8,000 tons of sand storage and four new ladder tracks, operations began on an interim basis in late January 2014 with full sand rail cars now on site and direct transloading onto third party trucks expected to commence in the coming weeks;
The trucking joint venture with Prairie Field Services expanded its fleet to 29 trucks to accommodate third party volumes in addition to its share of joint venture-marketed volumes. Approximately 21,000 barrels of oil per day are being hauled;
Dakota Plains is in the process of applying for a listing on a national stock exchange, targeting a completion date in Q2 2014.
Chairman and Chief Executive Officer, Mr. Craig McKenzie, said, “Over the last year, Dakota Plains has significantly grown its operations and value proposition. With a nameplate capacity of 80,000 barrels per day, the company now offers a rail terminal that employs the highest standards of safety and technology for the benefit of our customers. With throughput volumes at our highest rates to date and the UNIMIN operations getting underway, we believe that we can create significant value for our shareholders.”
Mr. McKenzie added, “North Dakota E&P activities continue to increase and more than 15,000 development wells are currently expected to be drilled within 25 miles of the Pioneer Rail Terminal. We are aggressively responding to the pace of development in the Bakken region by developing state-of-the-art facilities that can manage the outbound and inbound needs of our supplier and off-take customers. We look forward to continuing to ramp up operations and achieving significant growth in 2014 and beyond.”