Sean Mackiewicz
Williston, ND (USA)
Role(s):
Other
Mondak Energy Services, LLC
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Startup
Location:
Williston
Industry:
Energy
Year Founded:
2012
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
Limited Liability Company
Description:
Mondak Energy Services, LLC is an Oilfield rental company specializing in the rentals of Frac Heads, Remote Operated Frac Valves and Wellhead Heaters. I have setup my business in the heart of the Bakken Oilfield boom of the North Dakota and Montana area. I have already purchased most of the equipment to begin operations (8 Frac heads and 2 Frac valves). I need additional funding to purchase additional Frac valves and to pay for the transportation of all of the equipment and my Crane truck from storage in Seattle Washington to Williston North Dakota so that I can start servicing customers. I have several customers already lined up to begin using my services. At the time that I originally placed my order for the equipment from the manufacturer in China, North Dakota did not have any regulations regarding Remote Operated Frac Valves, so they were not very common on wellsites at the time. However, after ordering mostly Frac Heads and only a couple of Frac Valves, new regulations were put into place demanding that every Frac job is required to use at least 1 Remote Operated Frac Valve per location. And the customers I have lined up, prefer to use 2 Valves at a time in order to have a backup in case one is washed out. So now I am in need of additional funding to be able to purchase additional Frac Valves. Ideally I would like to purchase an additional 5-6 Valves to begin with. Each Valve is around $7,400. Once China receives the payment, it takes 45 days to complete the manufacturing process and then 2 weeks to deliver by ship to the port in Seattle. With each pair of Valves I also need to purchase an additional Hydraulic Generator which is used to operate the Valves on location. Each of these units cost roughly $3,000 and only takes a couple weeks to be delivered. Once the Equipment arrives in North Dakota, it is certified locally and then they are fitted with Hydraulic hoses and fittings and they are ready to start servicing wells. I have already invested $125,000 into the Crane Truck, 8 Frac Heads, 2 Frac Valves and 2 Hydraulic Generators. I am looking for 1 to 2 investors to help me with the last bit of capital to get this started. As far as potential income, each Frac Head or Frac Valves or Heater will bring in $500 a day, per location. Each location will have an average of 3-4 pieces of equipment on a location at a time. typically this is 1 Head, 2 Valves and in the winter time, 1 Heater. That's $1,500-$2,000 a day per customer. The customers will average being on locations 20 days out of each month. so each customer averages $30,000-$40,000 a month. Each piece of equipment pays for itself after servicing wells for 1 month, after that it's turning a profit. A Head and Valve can easily last for at least 1 year, and they usually last several in the Bakken area due to the low rate that is pumped through them at no more than 55 Barrels a Minute compared to Texas where they pump an average of 120 Barrels a Minute. Currently I am the sole owner of Mondak Energy Services so I am able to work with investors and work to meet their needs in return for their investment. I am willing to consider any good propositions. I thank you for your time and hope to hear back from you soon.