Following a pullback from a 52-week high at 79 cents last month, shares of Bri-Chem Corp. (TSX:BRY) are back on the climb in Tuesday morning action, making it one of the largest movers amongst TSX-listed issues.
The Edmonton-based company, which specializes in wholesale distribution of oilfield drilling, completion, stimulation and production chemical fluids, issued a short-and-sweet press release noting greater penetration into the prolific and popular Permian Basin in Texas.
Bri-Chem said that it widened its footprint in the U.S. drilling fluids market by adding its fourth warehouse and second oil-based mud blending plant in Texas. The oil based mud plant is strategically located in Kermit, Texas, which puts it near the central platform between the Delaware and Midland basins of the Permian basin.
Oil-based mud is a complex mixture of oil and water used for drilling oil wells in a safe and efficient manner. The oil can be a number of types, including kerosene, diesel and fuel oil, to name a few possibilities. The mixtures, which can contain water, emulsifiers, gellants and more, are mixed specifically for what appropriate for a particular drilling program.
Bri-Chem believes that the new centrally-located plant will not only better service existing customers, but possible draw in new business as well.
Shares of BRY are trading ahead 8 cents, or 14.0%, at 65 cents on limited trading volume a couple hours into the trading day. The stock has been uptrending since hitting a low of 11 cents in December 2015.
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