SOURCE: American Power Group Corporation

American Power Group Corporation

September 24, 2014 09:00 ET

American Power Group Receives Follow-On Orders Valued at $500,000 Destined for Several Leading Oil and Gas Exploration and Drilling Companies

Over 450 APG Dual Fuel Conversions Operating in the Major U.S. and Canadian Oil & Gas Basins

LYNNFIELD, MA--(Marketwired - Sep 24, 2014) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG") has received an order for fifteen APG dual fuel conversion systems valued at approximately $500,000 from SourceOne Equipment LLC ("SourceOne"), one of its domestic Stationary Dealer/Installers. With this order, SourceOne will have taken delivery of 51 APG conversion systems during the second half of fiscal 2014 which represents an 82% increase over their orders during the first half of fiscal 2014. While the end customers were not disclosed for proprietary reasons, several have previously converted 24 and 60+ units of their drilling engines to run on APG's dual fuel solution.

Shane Janssen, Vice President of Sales for Source One commented, "Several well known drilling service contractors have recently conducted side-by-side field performance evaluations between APG and other dual fuel solutions in order to baseline actual performance results versus claimed performance metrics. In our opinion, as APG's primary domestic stationary dealer/installer for the past three years, APG was successful in these evaluations due to having the best price, best overall up-time, highest overall average displacement fuel savings and the best operational flexibility and adaptability in the field. While we are pleased with our success to date, we are more excited about the opportunities we see going forward as we present what we believe to be the best overall dual fuel solution to additional leaders in the oil and gas drilling services industry."

Lyle Jensen, American Power Corporation's Chief Executive Officer stated, "We congratulate SourceOne on their accomplishments given it was just three summers ago we entered the oil and gas market by asking customers in Oklahoma and Texas to each test three early-adopter engines. Since then, our oil and gas customer base has grown to over forty of the most well-known oil and gas drilling service companies in the industry operating in all of the major shale regions in the United States and Canada." Mr. Jensen added, "APG's dual fuel design continues to be noted for its high up-time and ease of operation resulting in significant net savings at the lowest total cost of ownership. As evidenced by this 15 unit order, we believe the oil and gas industry is now beginning to appreciate that the reliability, flexibility and consistent field performance associated with APG's dual fuel solution is more important than claimed peak displacement rates. We look forward to expanding our dual fuel market share in the oil & gas industry. We are also beginning to see the same early-adopter to full adoption phenomenon occur in the heavy-duty Class 8 vehicular industry and expect similar success in this much larger addressed market."

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 75% 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, the fact that our dual fuel conversion business has lost money in the last five consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that 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, 2013 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
    Email Contact
    781-224-2411

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