Dakota Plains Holdings, Inc., provided an update on its operations and disclosed that the Pioneer Terminal expansion project is nearly complete and has set a date for commissioning.
◾ The current Brent to WTI crude oil price spread is at its highest level since mid-March 2013;
◾ The marketing and transloading operations are delivering all-time high levels of volumes for Dakota Plains with several daily gross rates in November reaching over 36,000 barrels per day;
◾ With construction nearly complete, the Pioneer Terminal expansion project remains on-time with commissioning set to commence by December 18, 2013. Total cost is within its $50 million approved budget; DAKP's 50% share of the final cost is expected to comprise $16 million from cash on hand and $9 million from the previously announced project credit facility;
◾ The Pioneer Terminal expansion consists of a double loop track that can accommodate two 120 rail car unit trains, 180,000 bbls of crude oil storage, a high-speed loading facility that can accommodate 10 rail cars simultaneously, and transfer stations to receive crude oil from local gathering pipelines and trucks. One gathering pipeline is already in service and is expected to provide about 8,000 barrels per day of oil to the Pioneer Terminal;
◾ Dakota Plains is in the final stages of completing a transition with its joint venture partner to assume the management oversight of the Pioneer Terminal operations. As a result, Dakota Plains will consolidate the transloading joint venture financial statements beginning in the fourth quarter of 2013;
◾ The inbound oilfield products business at the Pioneer Terminal continues to develop. Construction is underway for the $15 million frac sand terminal announced with UNIMIN earlier this year; completion is scheduled for May 2014. The frac sand terminal, which will be fully funded by UNIMIN, will comprise 8,000 tons of fixed sand storage, an enclosed transloading facility, and four ladder tracks. Interim frac sand transloading is expected to commence in January 2014, while construction of the permanent facility is still underway.