Capstone Green Energy Corp (fka CGRNQ)

[CaptWhizbang]

New from Ask Management:
{by way of Beach Ball @ IV Board}

September 24, 2014
Question #1:
Do the New Russian Sanctions directly affect Capstone? The share price has sold off to extreme low levels and I believe it’s due to New Russian sanctions on Oil & Gas equipment ban.

Answer from Capstone Management:
Currently, the Department of Treasury prohibits any US person or entity from conducting business in Russia with a company listed on the Sectoral Sanctions Identification List (SSIL) in relation to the provisioning, exportation, or re-exportation of goods or services in support of the exploration or production for deep-water, Arctic offshore, or shale projects that have the potential to produce oil in the Russian Federation or in a maritime area claimed by the Russian Federation. Additionally, the Department of Commerce requires a US person or entity whose activities may fall into this category to obtain an export license.

After thoroughly investigating this matter, we have determined that the above provisions do not apply to Capstone in its current dealings with its Russian distributors. Specifically, the activities of Capstone’s Russian distributors fall outside the scope of the identified sectoral sanctions. Therefore, Capstone is not in violation of the sanctions and further does not need to obtain an export license. Nonetheless, in the abundance of caution, Capstone is continuing its ongoing due diligence in this matter and will be working closely with its Russian distributors to ensure continued compliance.



Question #2
Question:
What are expectations for turbines in the Bakken shale region?

Answer from Capstone Management:
Capstone recently appointed Vergent Power Solutions as its distributor in North Dakota, among other states. We are excited to be partnered with Vergent as they tackle the Bakken Shale Play, where recent flare gas initiatives should provide excellent opportunity for Capstone’s product.

The Bakken has emerged in recent years as one of the most important sources of oil in the United States. Most new Bakken drilling and production has been in North Dakota, although the play also extends into Montana, Saskatchewan, and Manitoba.

As of 2013, the Bakken accounted for more than ten percent of all US oil production. In November 2013, the US Energy Information Administration projected that Bakken production in North Dakota and Montana would exceed one million barrels per day in December 2013. As a result of the Bakken, North Dakota has become the second largest oil-producing state in the US as of 2013, behind only Texas in the volume of oil produced.

Over time we fully expect that Capstone turbine technology will enjoy similar success in the Bakken Shale as we have achieved in the Marcellus, Permian and Eagle Ford shale plays.
http://www.capstoneturbine.com/investor/ask-management.asp