SOURCE: American Power Group Corporation
LYNNFIELD, MA--(Marketwired - Jan 23, 2014) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG") has received $750,000 in follow-on purchase orders since October 1st from Collicutt Energy Services, its stationary authorized dealer and certified installer in Alberta and Western Canada. The orders are for the upgrade and conversion of additional diesel generators on drilling rigs using APG's Turbocharged Natural Gas™ Dual Fuel System. While the end customers were not disclosed for proprietary reasons, these customers are ranked among the top oil and gas exploration and drilling companies in Canada and North America.
Steven Collicutt, CEO of Collicutt Energy Services, stated, "Many of our customers drill under some of the harshest operating conditions in North America. The proven reliability, performance and economic returns of the APG dual fuel solution under these circumstances has led to increasing demand from new and existing customers. Mr. Collicutt added, "APG provides our customers with a significant competitive advantage in a very bottom-line driven industry. Several of our oil and gas drilling and service company clients estimate a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG's dual fuel solution."
Lyle Jensen, CEO of American Power Group, stated, "We are pleased to see continued strong interest in the Canadian market from some of the leaders in the oil and gas drilling services market. We are already over 250% of last year's Canadian revenue and anticipate our penetration into the Canadian market to accelerate through our relationship with Collicutt Energy Services." Mr. Jensen added, "In addition to the fact our Canadian customers continue to see over 50% diesel displacement ratios, we feel the fact that APG's dual fuel system was the first and remains the only solution to obtain CSA Inspection and Acceptance stickers in the oil & gas industry to be a strong selling point. Similar to Underwriters Lab ("UL") approval in the United States, the CSA Inspection and Acceptance mark shows that a product has met CSA's recognized standards for safety and performance."
Mr. Jensen will be presenting today at the World LNG Fuels Conference (www.worldlngfuels.com) taking place at the George R. Brown Convention Center, Houston, Texas. Mr. Jensen will be discussing APG's dual fuel glider conversion technology as well as several recent customer success stories using liquefied natural gas as an alternative transportation fuel.
About Collicutt Energy Services
Collicutt Energy Services is a leading service provider in North America, and headquartered in Red Deer, Alberta, Canada with over 30 years of experience in the power generation and gas compression industry. Through its locations in Alberta, British Columbia, California, Nevada, Alaska, and Hawaii, Collicutt provides design and engineering services, field sales and support, large equipment overhaul and refurbishment and parts inventory for the power generation and gas compression industries.
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, 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.