DIVERGENT Energy Services Announces Successful Installation of Second-Generation Linear Electric Submersible Pump
CALGARY, ALBERTA--(Marketwired - Jan. 26, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. ("Divergent") (TSX VENTURE:DVG) is pleased to announce that its second-generation Linear Electric Submersible Pump (the "Pump") was successfully installed in an oil well in Southeast Saskatchewan on January 22 and has been operating continuously since start up.
Divergent expects to release details of the Pump's performance following 90 consecutive days of run time. The Pump's improved design is expected to deliver 25% more power at reduced power draw versus the prototype. Additional installations continue to be pursued in both Canada and the United States.
ABOUT THE PUMP'S TECHNOLOGY
Divergent's innovative Pump eliminates the on-going cost of rod and tubing wear in oil wells, which can help oil and gas producers drive down operating costs, enhance field efficiencies and improve operations. In the current weak commodity price environment, such cost savings can represent a significant benefit to producers seeking to maximize netbacks and control operating and capital costs.
The electromagnet Pump duplicates the reciprocating motion currently created by pumpjacks, but does it at the bottom of the well, eliminating the rod strings and surface lifting equipment typically used in oil wells. The Pump's power is generated by a magnetic field that causes the magnetic shaft of the motor to move in a back and forth, or linear, motion. All moving parts are contained within the submersible housing, allowing the Pump to be placed lower in the well than traditional rod pumps. Placing pumps lower in a well typically maximizes "draw down" and increases production.
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of artificial lift products and services that are used in the oil and gas industry, including its revolutionary Linear Electric Submersible Pump. Divergent's Pump is approaching commercialization and is targeted to replace traditional oil pumpjacks. Other Divergent products currently in use by its oil and gas industry customers include Electric Submersible Pumps and Electric Submersible Progressing Cavity Pumps.
FORWARD LOOKING STATEMENTS
This document contains information that constitutes forward-looking information and financial outlook within the meaning of applicable securities legislation. This forward-looking information and financial outlook is identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. This information and outlook speaks only as of the date of this document and we do not undertake to publicly update the forward-looking information and financial outlook contained in this document except in accordance with applicable securities laws.
Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(January 26, 2016 - 9:00 AM EST)
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