SOURCE: American Power Group Corporation

American Power Group Corporation

September 17, 2013 09:00 ET

American Power Group CEO to Present at High Horsepower Summit 2013

Highlights to Include Results for Recent High Pressure Fracturing Pump Rig Conversions at Noble Energy Site in DJ Basin Region of Colorado and Cudd Energy Services Site in Marcellus Region of Pennsylvania

LYNNFIELD, MA--(Marketwired - Sep 17, 2013) -  American Power Group Corporation (OTCQB: APGI) announced today that Lyle Jensen, President and CEO, will be presenting at the High Horsepower Summit 2013 (www.hhpsummit.com) taking place at the McCormick Place Lakeside Center in Chicago, Illinois September 17-19, 2013. Mr. Jensen's presentation today will discuss the initial results from two high-profile, high pressure installations utilizing APG's Turbocharged Natural Gas™ Dual Fuel System. APG is a market leader in the introduction of read-only digital electronics and proprietary natural gas software that safely and economically upgrades diesel engines to operate on a combination of diesel fuel and natural gas.

APG's user-friendly dual fuel system provides oil and gas service contractors the maximum flexibility to utilize either pipeline gas, qualified well-head gas, CNG (compressed natural gas) or LNG (liquefied natural gas), to displace on average over 50% of diesel fuel and realize significant fuel savings and significant lower emissions. Our oil and gas drilling customers have been experiencing paybacks ranging from three months (well-head gas) to nine months (LNG), making our dual fuel solution one of the most compelling competitive decisions they can make. As global diesel prices continue to escalate, the ability for operators to utilize our dual fuel technology with inexpensive, clean-burning and plentiful domestic natural gas provides a significant competitive advantage for those that adopt an APG dual fuel operation.

Mr. Jensen stated, "APG has experienced significant growth in using our dual fuel technology in the off-road drilling segment of the oil and gas industry where typical diesel engines range from 1,000HP to 1,500HP. Over a year ago, APG began extensive factory and field testing on high-pressure pumps used in shale fracturing that utilize diesel powered pumps in the 2,000HP to 3,000HP range. Earlier this year, we announced orders for the installation and commissioning of two initial projects relating to the conversion of thirty-two high power diesel pumps including both CAT and MTU/DD engines. Our first conversion project of 12 CAT pumps was completed for a Noble Energy site in the DJ Basin of Colorado. Our second conversion project of 20 MTU/DD pumps is in process with Cudd Energy Services for a site in the Marcellus Region of Pennsylvania. Both projects utilize APG's new industry leading Over-Pressure Protection System which ensures any anomalies in incoming natural gas pressures can be safely managed to avoid any damage to APG's system or the diesel engine."

Mr. Jensen added, "APG has now successfully completed and filed with the EPA, acceptable Memo 1A emission test results on 6 Caterpillar and 4 MTU/DD off-road diesel engine models, which allows us to compliantly expand our dual fuel stationary product offering as we enter 2014. According to industry reports, approximately 1,200 rigs are doing directional or horizontal oil and gas extraction which represents a 100+ million dollar addressable market that we expect will accelerate adoption of APG's dual fuel technology based on our favorable industry results experienced in 2013." 

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 80% 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.

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2012 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

  • Media Information Contact:
    Kim Doran
    Quixote Group
    336-413-1872
    Email Contact

    Investor Relations Contacts:
    Chuck Coppa
    CFO
    American Power Group Corporation
    781-224-2411
    Email Contact

    Michael Porter
    Porter, LeVay & Rose, Inc.
    212-564-4700
    Email Contact