CALGARY, Alberta, Jan. 28, 2019 (GLOBE NEWSWIRE) -- DIVERGENT Energy Services Corp. (“DIVERGENT” or the "Corporation") (TSX-V:DVG) is pleased to provide the following operations update.
ELECTRIC SUBMERSIBLE PUMP (“ESP”) OPERATIONS
The Corporation continues to focus on expanding its existing ESP operations in the Powder River Basin (“PRB”), within which our Gillette, WY facility is centrally located. Demand for products and services remains strong and the increased drilling activity for 2019 is anticipated to translate into increased demand for ESPs.
The outlook for 2019 includes a stable level of activity from the existing customer base that produces coal bed methane from the PRB and an increase in sales to the oil producing clients in the PRB. The Corporation believes the key to expansion within our existing service area and into other oil basins nearby is having the correct inventory on hand to realize current and future opportunities. Our strategy is focused on a specific set of producers and the alignment of our sales efforts with our available inventory to maximize the number of clients we can service with an efficient amount of product.
LINEAR ELECTROMAGNETIC SUBMERSIBLE PUMP (the “Linear Pump”)
The Corporation has concluded that the state of the Canadian oil industry and its associated aversion for risk is a longer-term barrier than previously anticipated. In December 2018, management made the decision to move all the Corporation’s Linear Pump assets to the United States. Discussions are underway for access to a test well in the southern US for long-term use. Once we have demonstrated longer run times and are able to deliver a proven solution, we expect the current barriers to installations in Canada will cease to exist and we will re-enter the Canadian market.
STRATEGY TO MOVE FORWARD
The Corporation recognizes that the above noted challenges have prolonged the development stage of the Linear Pump, therefore steps are being taken to deliver value within the products and services that are within our control.
Key Strategies:
- Position the Corporation to take advantage of the near-term upswing in PRB activity.
- Explore synergies with other companies to leverage products and services together to increase sales.
- Seek opportunities to expand into basins of high activity.
- Perform Linear Pump tests internally and prove out the product prior to installing in a client’s well.
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides cost effective, innovative technologies and solutions for submersible pumping to benefit our stakeholders. DIVERGENT is committed to increasing clients’ production while reducing operating costs and carbon footprint. Our products include Electromagnetic Pumps, Electric Submersible Pumps, and Electric Submersible Progressing Cavity Pumps.
For further information regarding this news release contact Ken Berg, President and Chief Executive Officer; or Scott Hamilton, Chief Financial Officer.
DIVERGENT Energy Services Corp., 1500, 715 – 5th Ave SW, Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax), www.divergentenergyservices.com
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 press release contains forward-looking statements, including, without limitation, statements pertaining to anticipated future operational activity levels, expansion opportunities and upcoming Linear Pump tests. 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. Forward-looking statements are based on estimates and opinions of management of the Corporation at the time the information is presented. The Corporation may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Corporation undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
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