Questor Technology Inc. (
TSX: V.QST,
Stock Forum) has received purchase orders for eight incinerators of various sizes from a major crude oil and natural gas producer headquartered in Calgary, Alberta and for nine incinerators of various sizes from Dominion Transmission Inc. (Dominion), operator of one of the largest underground natural gas storage systems in the United States, headquartered in Richmond, Virginia.
According to the
Questor Technology press release, the values of the orders are $1.5 million and $1.1 million respectively and the majority of the incinerators in both orders are expected to be delivered in the fourth quarter of 2013.
Although each transaction individually is not considered material, in combination with the company's performance in the first half these orders will contribute to strong 2013 financial results for Questor.
Once delivered to the customer, the eight incinerators will be deployed in a well tie-in project in the oil sands to incinerate waste gas. Dominion will deploy the nine units to combust waste gas from dehydration units on several of their sites in Pennsylvania and West Virginia.
"Questor's incineration technology addresses the problematic global issues associated with flaring." said Audrey Mascarenhas, Questor's President and CEO. "We are assisting our clients with regulatory compliance and environmental performance thereby helping them obtain the social license to operate. Our technology delivers a 99.99% destruction/combustion efficiency of waste hydrocarbon gas eliminating the impurities that would be released into the air through inefficient combustion from flaring."
Flaring has become a significant issue with respect to air quality in many areas in Canada and the United States due to the tremendous growth in crude oil production resulting from the practice called fracking which releases more of the crude oil and natural gas contained within tight formations.
Questor is an international environmental oil field service company which designs and manufactures waste gas incinerators for sale or for use on a rental basis and also provide combustion services in Canada, United States, Europe and Asia.
On Wednesday, Questor rose 21.7% and was trading at $1.46 a share. The company had a market cap of $36.7 million, based on 25.1 million shares outstanding.
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