Bri-Chem Announces Fourth Quarter and Year End Results - Seite 2

North American Drilling Fluids Distribution Divisions

Bri-Chem's Canadian drilling fluids distribution division generated sales of $20,641,847 and $81,798,365 for the three and twelve months ended December 31, 2014, compared to sales of $24,267,169 and $84,798,782 over the comparable periods in 2013. In Canada, drilling rig utilization averaged 47.4% for the fourth quarter, and 46.0% for the year ended December 31, 2014; an increase of 1.7% quarter over quarter and 4.4% year over year. The number of wells drilled in Western Canada for the three month and twelve month periods ended December 31, 2014 was 2,818 and 10,693, representing an increase of 4.3% quarter over quarter and 2.2% year over year. The slight decrease in Q4 2014 drilling fluid sales in Canada is primarily due to lower activity levels in late November and December due to the sharp decline in crude oil prices that negatively impacted purchasing demand from customers.

Bri-Chem's United States drilling fluids distribution division generated sales of $22,003,867 and $73,845,061 for the three and twelve month periods ended December 31, 2014, compared to revenues of $13,839,280 and $44,549,096 in the comparable periods of 2013, representing an increase of $8,164,587 or 59.0% quarter over quarter, while increasing 65.8% year over year. The USA fluids distribution division continued to realize sales growth throughout Q4 2014 as a result of increased industry activity, and product and geographic expansion throughout the major resource plays in the USA. The average number of active rigs running in the USA during the fourth quarter was 1,911, an increase of 8.8% quarter over quarter. The division has built a solid infrastructure with personnel and inventory to service the expanding needs of our customers. The states of Colorado, Pennsylvania, Oklahoma, Wyoming and Texas generated the majority of sales in the USA for the three months ended December 31, 2014.

North American Drilling Fluids Blending & Packing Divisions

Bri-Chem's Canadian drilling fluids blending and packaging division continued to grow as the Company generated sales of $6,008,881 and $20,762,919 for the three and twelve months ended December 31, 2014 compared to the comparable prior year period sales of $4,970,079 and $18,383,427 representing 20.9% increase quarter over quarter. The division increased its market share by utilizing newly expanded capacity to meet the increasing demand of our customers. On December 1, 2014, Bri-Chem acquired 100% of the issued and outstanding shares of Solution Blend Service Ltd. ("Solution Blend"), an Alberta based liquid blending facility for production and stimulation oilfield chemicals. Solution Blend, located in Calgary, AB, is leading specialty blending company for the stimulation and production chemical segment of the oilfield chemical industry. Solution Blend generated sales of $441,278 since the date of acquisition in Q4 2014.