CALGARY, ALBERTA--(Marketwired - Nov. 16, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. ("Divergent" or "the Corporation") (TSX VENTURE:DVG) is pleased to announce that an improved and enhanced Linear Electric Submersible Pump (the "Linear Pump") was successfully installed into a client oil well in Southeast Saskatchewan on November 14 and has been pumping continuously since the start of the test. Reliability of the Linear Pump's unique electromagnetic motor and surface control systems has been confirmed through prior testing. The tests also identified a weakness in the design of the shaft of the pump section of the Linear Pump, which led to the pump separating from the motor. Those design changes have been implemented to strengthen the shaft of the pump.
Divergent expects to provide details of the Pump's performance on a regular basis as part of operations updates between financial reporting periods. The Company continues to pursue additional installations in both Canada and the United States in order to run concurrent operations and accelerate the move towards commercialization.
An order for two additional electromagnetic motors has been placed, with delivery of the first two motors expected in January 2017. With an increased number of Linear Pumps running, Divergent anticipates it will increase its inventory of Linear Pumps to meet the growing demand.
Divergent's US Artificial Lift Systems ("ALS") division in Gillette, Wyoming continues to experience high demand for its products and services, with a record set in August for activity levels. Overall Q3 activity levels exceeded average activity from Q2, and demand is expected to remain high for the foreseeable future. The operation is benefitting from its new and larger facility and the sales team continues to aggressively pursue new clients and geographic regions that can be serviced from Gillette. Further details will be included with the release of Divergent's Q3 financials later in November 2016.
The Corporation's long-term strategy is to be a leading supplier of disruptive submersible pumping products that reduce costs, energy consumption, and carbon footprint. The commercialization of our Linear Pump will provide oil companies with the opportunity to reduce production costs, lower operating expenses and minimize environmental footprint, while providing Divergent with differentiation within a competitive and growing market.
ABOUT THE LINEAR PUMP'S TECHNOLOGY
Divergent's innovative Pump eliminates the on-going cost of rod and tubing wear in oil wells, which can help oil and gas producers drive down operating costs, enhance field efficiencies and improve operations. In the current weak commodity price environment, such cost savings can represent a significant benefit to producers seeking to maximize netbacks and control operating and capital costs.
The electromagnet Pump duplicates the reciprocating motion currently created by pumpjacks, but does it at the bottom of the well, eliminating the rod strings and surface lifting equipment typically used in oil wells. The Pump's power is generated by a magnetic field that causes the magnetic shaft of the motor to move in a back and forth, or linear, motion. All moving parts are contained within the submersible housing, allowing the Pump to be placed lower in the well than traditional rod pumps. Placing pumps lower in a well typically maximizes "draw down" and increases production.
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of artificial lift products and services that are used in the oil and gas industry, including its revolutionary Linear Electric Submersible Pump. Divergent's Pump is approaching commercialization and is targeted to replace traditional oil pumpjacks. Other Divergent products currently in use by its oil and gas industry customers include Electric Submersible Pumps and Electric Submersible Progressing Cavity Pumps.
This document contains information that constitutes forward-looking information and financial outlook within the meaning of applicable securities legislation. This forward-looking information and financial outlook is identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. This information and outlook speaks only as of the date of this document and we do not undertake to publicly update the forward-looking information and financial outlook contained in this document except in accordance with applicable securities laws.
Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.
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