Divergent Energy Services Corp V.DVG.H

Full News Release

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CALGARY, ALBERTA – January 26, 2016. DIVERGENT Energy Services Corp. (“Divergent”) 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. By placing the pump lower in the well, producers have the potential to maximize the draw down in the well – a condition that could induce higher flow rates in some wells.