DIVERGENT Energy Services Corp. (TSX VENTURE:DVG) ("Divergent" or "the Corporation") is pleased to provide the following operations update.
The Linear Electromagnetic Submersible Pump (the "Linear Pump") installed on March 24, 2017 has been running continuously since start up and has achieved the major milestone of one month of run time. The pump continues to operate consistently with production rates and operating parameters having little variance from day to day.
Divergent's submersible pumping business in Gillette, Wyoming continues to see solid demand for services and is well positioned to grow with the improving markets in both Colorado and Wyoming. The business also continues to expand the geographic regions it services, with an increase in activity expected from new drilling activity in Colorado.
The Corporation's vision is to be a premier supplier of submersible pumping products that increase production while reducing costs and carbon footprint. The commercialization of our Linear Pump represents a build on our existing electric submersible pump ("ESP") business, and will provide oil and gas companies with the opportunity to capitalize on the Linear Pump's many benefits while differentiating Divergent within a competitive and growing market.
ABOUT THE PUMP
The Linear Pump eliminates the ongoing 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 motor 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.
SOURCE: DIVERGENT Energy Services Corp.
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