CALGARY, ALBERTA--(Marketwired - Sept. 26, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. ("Divergent" or the "Corporation") (TSX VENTURE:DVG) is pleased to provide the following operations update.
Linear Pump Update
As outlined in the August 24, 2016 press release, the Corporation has continued to implement a number of design improvements to its Linear Electromagnetic Submersible Pump (the "Linear Pump"). Through previous deployments, the Corporation has confirmed the reliability of the electromagnetic motor and the surface control systems, while the current design improvements will strengthen the shaft of the pump section to address issues experienced during previous testing in 2016. Those changes have been implemented and the pump is being assembled, with a planned installation of the improved Linear Pump as soon as the client schedules the associated field services and personnel.
Updates on the installation and performance will be provided as further information become available.
Continued Outperformance of US Operations
Divergent's U.S. Artificial Lift Systems ("ALS") division in Gillette, Wyoming continues to experience high demand for our Electric Submersible Pump ("ESP") products and services, with the month of August setting another record activity level. To date in the third quarter of 2016, activity levels have exceeded the average levels realized in the previous quarter, which was record-setting for the Corporation. The ALS division is benefitting from its new and larger facility while the sales team continues to aggressively pursue new clients, including in the oil well ESP market, as well as new geographic regions that can be serviced from Gillette. Given the current operating outlook, it is anticipated that activity levels in Divergent's ALS division will remain strong for the foreseeable future.
The Corporation's long-term strategy is to become a premiere supplier of submersible ALS products and services to the energy industry, a segment that is expected to see significant growth globally. 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 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 Electromagnetic 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.
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.
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds and the closing of the private placement including the Corporation's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.