CALGARY, ALBERTA--(Marketwired - Nov. 28, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. ("Divergent") (TSX VENTURE:DVG) provides the following update on the status of its Linear Electric Submersible Pump (the "Linear Pump"), which was installed in an oil well in Southeast Saskatchewan and successfully started-up on November 14, 2016.
The daily performance and operating characteristics were similar to previous tests, and produced fluid at a peak rate of 20.9 m3/d (131 bbl/d). Despite the continuous performance and positive results observed in the test, the 3rd party power cable that delivers electricity to the motor suffered a ground fault on November 19, 2016. The tubing, cable, and pump were retrieved from the well on November 24, 2016. This is the third incident of a ground fault in third-party supplied electric cable that transmits power to the motor. Two cable ground faults were experienced in the first 2016 test; no faults were experienced in the second 2016 test; and the most recent (third) 2016 test ended due to a ground fault in the cable. The decision has been made to investigate all possible causes of the ground faults prior to re-installing the Linear Pump. We anticipate that the existing Pump will be reinstalled following corrective measures to eliminate the cable ground fault issue.
Visual inspection of the Linear Pump indicates that the new pump design shows no sign of wear. The pump was recently re-designed to strengthen the shaft that had broken previously and caused the pump to decouple from the motor.
Further updates will be provided as they become available.
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.
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.