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American Power Group Announces Multiple "Fueled By Flare(TM)" Dual Fuel Drilling Rigs Operating in North Dakota's Bakken Region
LYNNFIELD, MA -- (Marketwired) -- 05/07/15 -- American Power Group Corporation (OTCQB: APGI) announced that its largest oil field drilling and service company customer who has converted over 50 prime power engines to APG's dual fuel solution is currently operating drilling rigs for four different end customers utilizing APG's Fueled By Flare™ dual fuel solution in the Bakken region of North Dakota. While the end customers were not disclosed for proprietary reasons, a recent industry survey ranked these four companies among the top 10 oil and gas exploration and production ("E&P") companies in the United States.
Lyle Jensen, CEO of American Power Group, stated, "Over 70% of APG's dual fuel stationary oil rig conversions in North America are operating on conditioned wellhead/flared gas in applications such as drilling, fracking, pumping, air compression and mobile lighting towers. The Bakken region of North Dakota is an area facing significant penalties and restrictions associated with the flaring of their wellhead gas. We believe that federal, state, and local emission regulations will only get tougher as it relates to the amount of wellhead/flared gas that can be emitted into the environment. The economic and environmental benefits of converting this previously considered "waste" gas into usable fuel is one of the most compelling environmental case studies of our time and we believe APG's Dual Fuel technology will become a major consumer and sustainability solution for operators in this area."
Mr. Jensen added, "Based on data obtained thus far, our customers estimate a potential aggregate net monthly fuel savings of between $40,000 and $60,000 per drilling rig when utilizing APG's dual fuel solution and conditioned wellhead/flared gas. As the idling of rigs across the United States appears to be slowing down, drilling service companies as well as their E&P customers are now focusing their efforts on cost reduction and improving operating efficiencies of active drilling rigs which makes our Fueled By Flare™ dual fuel solution the perfect complement to these efforts."
Mr. Jensen concluded, "While there are significant opportunities associated with the use of conditioned wellhead gas in stationary oil and gas drilling applications, we see a much larger addressable market in the thousands of heavy-duty trucks supporting the oil and gas exploration industry. The ability to use conditioned wellhead/flared gas to fuel these trucks can provide an operator with a significant competitive economic advantage as well as help address a significant pending problem for the E&P companies who have to eliminate the flaring of their wellhead gas."
About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.
Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that our dual fuel conversion business has lost money in the last six consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2014 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Media Information Contact:
Kim Doran
Quixote Group
336-413-1872
Email Contact
Investor Relations Contacts:
Chuck Coppa
CFO
American Power Group Corporation
781-224-2411
Email Contact
Mike Porter
Porter, LeVay, & Rose, Inc.
212-564-4700
Email Contact
Source: American Power Group Corporation
