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Momentive Chemicals Oilfield Technology Group Starts New Production Line

The Oilfield Technology Group (OTG) of Momentive Specialty Chemicals Inc. (formerly Hexion), today announced the startup of a new manufacturing production line at its Cleburne, Texas facility and plans to build an additional line at its plant in Brady, Texas to provide additional resin coated proppants to fracturing service companies and operators in the oil & gas industry.

"The increasing need for Momentive's specialty resin coated proppants, used in the hydraulic fracturing process to enhance oil and gas extraction, has fueled the company's expansion program," said Momentive OTG Vice President Jerry Borges.

The new facilities are part of the overall plan of Momentive's OTG business to expand capacity 40% in 2011. The Brady facility will be fully operational in the second quarter of 2011.

"Momentive, the world's largest supplier of specialty proppants, continues to add new production capabilities to meet the needs of the industry for high quality resin coated proppants. These additional production lines are another part of achieving our ongoing expansion plans,"
Borges said.

Resin coated proppants are used in the hydraulic fracturing process to help optimize production from oil and gas wells by maximizing fracture flow capacity from the reservoir to the wellbore. Technological innovations and Momentive's introduction of enhanced materials have expanded the use of resin coated proppants into unconventional reservoirs that feature complex and challenging geological formations.

"Our expansion program is in direct response to the increased demand from our customers. These new production lines highlight the dedication we have to providing Momentive's customers with the materials they need to optimize their hydraulic fracturing results," Borges said.

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