Divergent Energy Services Corp.
TSX VENTURE : DVG

Divergent Energy Services Corp.

February 05, 2015 09:15 ET

DIVERGENT Energy Services Corp.: Five Year Service Agreement for Linear Electric Submersible Pumps

CALGARY, ALBERTA--(Marketwired - Feb. 5, 2015) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

DIVERGENT Energy Services Corp. (the "Corporation") (TSX VENTURE:DVG) is pleased to announce that it has entered into a five-year service agreement (the "Contract") with a Calgary based oil company (the "Client") for the supply and installation of the Corporation's Linear Electric Submersible Pumps (the "Pump(s)"). The first candidate well has been identified, a service rig has been scheduled to move onto the well, and Pump installation is expected to occur during the second week of February. Two more installations are anticipated as additional wells come available, the timing of which cannot be accurately predicted. The Client has been asked to focus on wells that are no deeper than 1500m (5000ft) and produce less than 23m3/day (150 bbl/day) of fluid.

As consideration for the pilot program, the Contract provides the Client with a five-year Right of First Refusal on the supply of the Corporation's Pumps. Mr. Ken Berg, President and CEO, states; "We believe this will accelerate rather than inhibit growth for Pump sales. The Client is an ideal partner due to their progressive nature, focus on technology, and extensive inventory of wells."

Design on a second-generation Pump is ongoing, and is expected to be complete once any modifications arising from early results of the pilot program are understood. These Pumps will be capable of operating at depths to 2750m (9000ft), production volumes to 47m3/day (300 bbl/day), and significantly longer run life. The Client has expressed interest to install at least two, second-generation Pumps as part of further pilot testing as the Pumps become available.

For more information on the Pumps, please visit the Corporation's website at www.divergentenergyservices.com.

Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.

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.

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