CALGARY, ALBERTA--(Marketwired - March 28, 2017) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. (TSX VENTURE:DVG)("Divergent" or "the Corporation") is pleased to announce that a Linear Electromagnetic Submersible Pump (the "Linear Pump") was successfully reinstalled into a client oil well in Southeast Saskatchewan on March 24 and has been pumping continuously since the start of the test. Previous tests in the same well had identified an issue with the power cable that supplies electricity to the Linear Pump, and this installation now includes a tool that isolates the tubing movement that was believed to be causing the failures.
Divergent expects to provide details of the Pump's performance on a regular basis as part of operational 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.
The Corporation's vision is to be a premier supplier of submersible pumping products that increase production, while reducing costs and carbon footprint. The commercialization of our Linear Pump represents a build on our existing electric submersible pump ("ESP") business, and will provide oil and gas companies with the opportunity to capitalize on the Linear Pump's many benefits while differentiating Divergent within a competitive and growing market.
ABOUT THE PUMP
The Linear Pump eliminates the ongoing 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 motor 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.
FORWARD LOOKING STATEMENTS
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.
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.