Exhibit 99.2

 

 

Chairman		February 9, 2023
James W. Boyd		File: 3871.008
President and CEO
John T. Boyd II
Managing Director and COO
Ronald L. Lewis		Mr. John Turner
		President & Chief Financial Officer
Vice Presidents Robert J. Farmer		Atlas Sand Company LLC 5918 W Courtyard Drive Suite 500 Austin, TX 78730
John L. Weiss
Michael F. Wick
William P. Wolf
Managing Director - Australia		Subject: Estimation of Atlas Sand Company, LLC
Jacques G. Steenekamp
Managing Director - China Jisheng (Jason) Han		2022 Year-End Reserves Kermit and Monahans Properties
		Winkler and Ward Counties, Texas
Managing Director – South America
Carlos F. Barrera		Dear Mr. Turner:
Managing Director – Metals
Gregory B. Sparks		This letter provides John T. Boyd Company’s (BOYD) update of estimated proppant (frac) sand reserves remaining as of December 31, 2022, at the Kermit and Monahans Mines. BOYD is familiar with the Atlas Sand Company, LLC (Atlas) reserve holdings, having completed a S-K 1300 Technical Report Summary (TRS) for both of the properties, as of December 31, 2021. The reader is referred to this May 2022 report (BOYD Report No. 3871.006) for definitions and general resource and reserve procedures used by BOYD, as well as additional information pertaining to the subject property.
Pittsburgh 4000 Town Center Boulevard, Suite 300
Canonsburg, PA 15317
(724) 873-4400
(724) 873-4401 Fax
jtboydp@jtboyd.com
Denver
(303) 293-8988
jtboydd@jtboyd.com
Brisbane
61 7 3232-5000
jtboydau@jtboyd.com
Beijing		This resource/reserve summary update was prepared for Atlas in support of their disclosure of frac sand resources and reserves for the Kermit and Monahans Mines in accordance with S-K 1300 Regulations.
86 10 6500-5854
jtboydcn@jtboyd.com
Bogota
+57-3115382113 jtboydcol@jtboyd.com
www.jtboyd.com
		Reserve Opinion
		It is our professional opinion that as of December 31, 2022, Atlas controlled 192.83 million tons of Proven and Probable

Mr. John Turner				February 9, 2023
Atlas Sand Company, LLC				Page 2

 

Reserves at the Kermit Mine and 164.60 million tons of Proven and Probable Reserves at the Monahans Mine in Winkler and Ward Counties, Texas. The product tonnage is estimated as follows:

 

Summary of Atlas Energy Solutions Reserves - By Control and Product Size - Year Ended December 31, 2022
Kermit Facility		Proven												Probable												By Mesh Size
		40/70				70/140				Total				40/70				70/140				Total				40/70				70/140				Total
Owned			78,433				56,554				134,987				—				—				—				78,433				56,554				134,987
Leased			28,580				24,433				53,013				2,599				2,232				4,831				31,179				26,665				57,844
Total			107,013				80,987				188,000				2,599				2,232				4,831				109,612				83,219				192,831
Monahans Facility		Proven												Probable												By Mesh Size
		40/70				70/140				Total				40/70				70/140				Total				40/70				70/140				Total
Leased			70,053				43,454				113,507				32,041				19,057				51,098				102,094				62,511				164,605

Year Over Year (YOY) Changes to Estimated Resources and Reserves

Unless otherwise stated, frac sand resource and frac sand reserve estimates disclosed herein are completed in accordance with the standards and definitions provided by S-K 1300. It should be noted that BOYD considers the terms “mineral” and “frac sand” to be generally interchangeable within the relevant sections of S-K 1300.

As noted in §229.1304(e), Individual Property Disclosure.

Compare the property’s mineral resources and mineral reserves as of the end of the last fiscal year with the mineral resources and mineral reserves as of the end of the preceding fiscal year, and explain any material change between the two.

The following is a summary of the YOY changes to Atlas’ reportable mineral (frac sand) resources and mineral (frac sand) reserves:

 

1.	Mineral (Frac Sand) Resources:

 

a.

As of December 31, 2021, the frac sand resources (measured, indicated, and inferred) excluding those converted to frac sand reserves are as follows:

 

Summary of Frac Sand Mineral Resources (Tons 000) at the End of the Fiscal Year Dated December 31, 2021.
		Owned				Leased				Total
Kermit Operation			38,904				359,476				398,380
Monahans Operation			—				1,266,739				1,266,739
Total			—				1,626,215				1,665,119

 

JOHN T. BOYD COMPANY

Mr. John Turner				February 9, 2023
Atlas Sand Company, LLC				Page 3

 

b.

As of December 31, 2022, there were no additional frac sand resources (measured, indicated, or inferred) acquired; therefore, there is no YOY change in the resource estimate and it remains at 1,665,119 tons.

 

2.	Mineral (Frac sand) Reserves –

Kermit Mine- Summarized in the tables below, the estimated total reportable frac sand reserves for the Kermit Property as of December 31, 2021, were 198.02 million tons (per the TRS), and the estimated total reportable frac sand reserves as of December 31, 2022, were 192.83 million tons.

 

Kermit Mine - Summary of Frac Sand Mineral Reserves (Tons 000) at the End of the Fiscal Year Dated December 31, 2021 Based on Price of $30.00 per ton
		Owned				Leased				Total				Product Size				Recovery *(%)
Proven mineral reserves			140,172				53,013				193,185				40/140-Mesh				81
Probable mineral reserves			—				4,831				4,831				40/140-Mesh				81
Total			140,172				57,844				198,016
Kermit Mine - Summary of Frac Sand Mineral Reserves (Tons 000) at the End of the Fiscal Year Dated December 31, 2022 Based on Price of $30.00 per ton
		Owned				Leased				Total				Product Size				Recovery*(%)
Proven mineral reserves			134,987				53,013				188,000				40/140-Mesh				81
Probable mineral reserves			—				4,831				4,831				40/140-Mesh				81
Total			134,987				57,844				192,831

 

*	Recovery % represents the product yield after processing losses based on average of drill data.

The YOY change of approximately 2.6% in reportable reserve tons is due to the normal mining (production) activity occurring on the property whereby the ROM material is depleted for the production of saleable frac sand product.

Monahans Mine- Summarized in the tables below, the estimated total reportable frac sand reserves for the Monahans Property as of December 31, 2021, were 169.72 million tons (per the TRS), and the total reportable frac sand reserves as of December 31, 2022, were 164.61 million tons.

 

Monahans Mine - Summary of Frac Sand Mineral Reserves (Tons 000) at the End of the Fiscal Year Dated December 31, 2021 Based on Price of $30.00 per ton
		Owned				Leased				Total				Product Size				Recovery *(%)
Proven mineral reserves			—				118,625				118,625				40/140-Mesh				88
Probable mineral reserves			—				51,098				51,098				40/140-Mesh				88
Total			—				169,723				169,723
Monahans Mine - Summary of Frac Sand Mineral Reserves (Tons 000) at the End of the Fiscal Year Dated December 31, 2022 Based on Price of $30.00 per ton
		Owned				Leased				Total				Product Size				Recovery *(%)
Proven mineral reserves			—				113,507				113,507				40/140-Mesh				88
Probable mineral reserves			—				51,098				51,098				40/140-Mesh				88
Total			—				164,605				164,605

 

*	Recovery % represents the product yield after processing losses based on average of drill data.

 

JOHN T. BOYD COMPANY

Mr. John Turner				February 9, 2023
Atlas Sand Company, LLC				Page 4

 

The YOY change of approximately 3% in reportable reserve tons is due to the normal mining (production) activity occurring on the property whereby the ROM material is depleted for the production of saleable frac sand product.

Report Qualifying Statements

Based on the work efforts conducted during our mineral resource/mineral reserve update, it is BOYD’s opinion that the above reserve statement, as a whole, provides a reasonable estimate of the available controlled proppant sand reserves that can reasonably be expected to be legally and economically extractable at the time of determination. The statements are therefore considered suitable and appropriate for public reporting, and are derived using a sound and logical industry customary approach.

Our update was performed to obtain reasonable assurance regarding Atlas’ latest reserve statements. Our methodology and practices applied in formulating this estimate are consistent with generally acceptable mining engineering practice. We believe our audit provides a reasonable basis for our opinion.

The individuals primarily responsible for this resource/reserve update letter are by virtue of their education, experience, and professional association considered Qualified Persons as defined in Subpart 1300 of Regulation S-K.

Estimates of any mineral resources and reserves are always subject to a degree of uncertainty. The level of confidence that can be applied to a particular estimate is a function of, among other things: the amount, quality, and completeness of exploration data; the geological complexity of the deposit; and economic, legal, social, and environmental factors associated with mining the resource/reserve. By assignment, BOYD used the definitions provided in S-K 1300 to describe the degree of uncertainty associated with the estimates reported herein.

In preparing this reserve estimate, we have relied on information provided by Atlas regarding the property, as well as the TRS for the Kermit and Monahans property. BOYD notes that nothing has come to our attention in the course of preparing this reserve estimate letter that would indicate it is not veritable as of the date provided to us.

We do not warrant the conclusions and findings of this reserve estimate, but consider them reasonable, realistic, and developed using accepted engineering practices. We believe the results of our year-end reserve estimate provide a firm basis for evaluation of the Atlas Kermit and Monahans properties.

 

JOHN T. BOYD COMPANY

Mr. John Turner				February 9, 2023
Atlas Sand Company, LLC				Page 5

 

It is our opinion that the tonnages presented herein represent a reasonable accounting of the Atlas Kermit and Monahans estimated frac sand resource and reserve holdings as of December 31, 2022.

Respectfully submitted,

JOHN T. BOYD COMPANY

By:    

John T. Boyd II

President and CEO

 

JOHN T. BOYD COMPANY