American Power Group Corporation 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."