American Power Group Receives Order for New Fracturing Rig Customer
American Power Group Corporation (OTCQB: APGI) announced their subsidiary, American Power Group Inc. (“APG”), has received an order valued between $400,000 to $500,000 to upgrade and convert twelve high pressure diesel engines used for hydraulic fracturing to APG’s S3000 Dual Fuel Turbocharged Natural Gas® system for a new fracturing rig customer operating in the Eagle Ford shale region of Texas. SourceOne Engine Equipment, LLC, one of APG’s domestic Dealer/Certified Installers booked the order and we expect the units to be shipped during the June 2014 quarter. While the end customer and the exact value of the order was not disclosed for proprietary reasons, we believe the customer is among the top hydraulic fracturing and pressure pumping oil and gas service companies in the United States.
The Railroad Commission of Texas reports the Eagle Ford shale region is approximately 50 miles wide and 400 miles long running from South Texas into East Texas. The first drilled site occurred in 2008, and since then, the Eagle Ford shale region is reported to be one of the most active shale plays in the world with over 220 operating rigs. The shale region produces both oil and gas from various depths ranging from 4,000 ft. to 12,000 ft. The Railroad Commission reports several of the major operators in the Eagle Ford include Anadarko, Apache, Atlas, EOG, Lewis Petro, Geo Southern, Petrohawk, Pioneer, SM Energy and XTO. Of these operators, half have converted varying numbers of their oil and gas diesel engines to APG’s S3000 Dual Fuel Turbocharged Natural Gas® system throughout North America.
Lyle Jensen, American Power Group Corporation’s Chief Executive Officer, stated, “We are pleased APG was awarded this order after being base-lined against other dual fuel competitors for up-time, product availability, EPA-emission compliance, and overall performance. During 2014, we have won business and have begun to establish ourselves in two of the newest and most active oil & gas regions in the world — the Bakken Region in North Dakota with over 180 active rigs and now the Eagle Ford shale region in south Texas with over 220 active rigs. Both regions are predicting decades of oil and gas production recovery providing long-term growth opportunities for our company.”
Mr. Jensen added, “This order caps a great month of May where we saw record vehicular dual fuel conversion orders from our WheelTime Network members for 40 systems from new customers, new regions (Oklahoma and Pennsylvania) as well as several multi-unit follow on orders.”
Source: American Power Group