American Power Group's Trident NGL Services Division Secures Flare Capture Agreement With Another Major Oil Company in the North Dakota Bakken Region
LYNNFIELD, MA--(Marketwired - Sep 14, 2015) - American Power Group Corporation (OTCQB: APGI) announced today that its Trident NGL Services Division has secured its second flare capture services relationship with one of the largest oil companies in the world whose identity has not been disclosed due to non-disclosure and competitive reasons. APG's Trident Services Division will be up-fitting two of the customer's well sites with Trident's Modular Flare To Fuel™ Capture and Recovery System in the North Dakota Bakken oil and gas region. Installation of both systems is scheduled to occur in the next thirty to sixty days allowing Trident to begin monetizing the captured flare by converting the gas to saleable Natural Gas Liquids ("NGL's").
APG recently announced a license agreement with Trident Resources, LLC ("Trident") for the exclusive worldwide right to commercialize Trident's proprietary NGL processing technology. APG purchased certain of Trident's operating assets including two existing mobile NGL processing systems and recently announced a commitment for the financing of two additional systems in response to strong demand from oil and gas operators looking for an effective solution to capture their flare on existing remote and stranded well sites. An average remote or stranded well site producing one to two million cubic feet of flared gas per day has the capacity to produce several million gallons of NGL per year making this a multi-billion dollar regulatory-driven market.
What is the NGL market and where does APG's Trident NGL Services Division fit? When oil is extracted from shale, a mixture of hydrocarbon gases (methane, ethane, propane, butane, pentane and other heavy gases) reach the surface at each well site. These gases are either gathered in low-pressure pipelines for downstream NGL extraction by mid-stream processing companies or flared into the atmosphere when the gas-gathering infrastructure is too far away (remote well sites) or the pipeline is insufficient to accommodate the volumes of associated gas (stranded well sites). These remote and stranded well sites are under increasing regulatory requirements to either capture the flared gas or significantly reduce oil output. APG's proprietary Trident NGL capture and recovery process is the emerging leader in capturing and converting a higher percent of the gases at these remote and stranded well sites with its mobile and modular design when compared to other competitive capture technologies that cannot meet the 85% capture regulation due on January 1, 2016. NGL's can be sold to a variety of end markets for heating, emulsifiers, or as a combined NGL liquid called Y Grade that can be sold to midstream companies who separate the liquids into their final commodities.
Lyle Jensen, CEO of American Power Group, stated, "We are very pleased to have secured such a prestigious new customer within the first thirty days of entering the natural gas flare recapture and NGL processing business. We will now have two of the top six exploration and production companies in the Bakken region using our capture and recovery service. The Bakken region has over 2,500 well sites classified as remote or stranded where we intend to initially expand our Flare to Fuel™ capabilities."
Mr. Jensen added, "While it is an industry standard to not discuss output of any specific well site and each well site has its own production rate and declination curve, we believe this new customer relationship is capable of initially producing several million dollars of NGL revenue per year with an opportunity to expand our capabilities to more of their remote well sites in the future."
About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.
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(September 14, 2015 - 9:46 AM EDT)
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