CALGARY, ALBERTA--(Marketwired - June 26, 2015) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. (the "Corporation") (TSX VENTURE:DVG) is pleased to announce the following operations update.
ARTIFICIAL LIFT
The Corporation is pleased to report that the prototype Linear Electric Submersible Pump (the "Pump") has met the Corporation's expectations. The pilot program has allowed the Corporation to identify issues with the prototype, which have now been corrected. As a result, the Corporation has begun production of the commercial model of the Pump, with the first Pumps scheduled for delivery mid-September.
Upon delivery of the commercial model of the Pump, installations will begin immediately with our industry partner, and ongoing installations will occur as demand dictates.
The Corporation is also pleased to announce that it is moving ahead with its first Canadian-based operations facility. Weyburn, SK has been selected as the location for the facility and the Corporation is targeting to be operational prior to receiving the first shipment of commercial Pumps. Ultimately, the Corporation intends to carry Pump inventory in both Canada and the United States.
The Corporation has proven that the concept of using permanent magnets to drive a submersible reciprocating pump in oil wells is not only viable but a preferable alternative to traditional pumping techniques used in shallow horizontal wells. The Corporation continues to improve upon the Pump control software.
The key accomplishments during the test period are:
- The new bushing design performed as expected;
- The software that tells the Pump to extend its stroke length on the upstroke, eliminating all space in the chamber, has been used successfully to combat gas-locking (a situation that arises when natural gas (or air) enters the Pump and renders the Pump unable to move fluid despite continued stroking);
- The modem/cell device is successfully transmitting data real-time and;
- Real-time adjustments can be made to operating parameters of the Pump, both remotely and onsite.
The existing submersible pump operation, based in Wyoming, continues to grow market share, which has significantly offset the decline in overall market activity levels. We are now ideally situated to take advantage of any rebound in industry activity. The Corporation's existing facility in Wyoming is also capable of installing the new Pumps without adding new staff or equipment.
Divergent's Pump uses permanent magnet motor technology that duplicates rod pump movement without rod string or surface lifting equipment. All moving parts are contained within the submersible pump housing, eliminating rod and tubing wear, making the Pump ideally suited for landing in deviated or horizontal oil wells and as an alternative to conventional pump jack installations.
MEXICO
The Corporation is in the final stages of financing an oilfield construction project in south-eastern Mexico which is anticipated to collect approximately CAD$2,000,000 in receivables.
Further information can be accessed at www.divergentenergyservices.com.
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.
This press release contains forward-looking statements, including, without limitation, statements pertaining to the installation of additional hardware and the starting of the Pump. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. Forward-looking statements are based on estimates and opinions of management of the Corporation at the time the information is presented. The Corporation may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Corporation undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
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.