Purchase Orders Worth $750,000 Since October 1,
Multiple Units Converted for Five Leading Drillers
American Power Group, which offers duel fuel equipment for diesel engines, reports the conversion of “multiple units” for five leading drilling and well service companies in North America, with $750,000 in follow-on purchase orders since October 1 from Collicutt Energy Services, APG’s stationary authorized dealer and certified installer in Alberta and Western Canada.
The orders are for the upgrade and conversion of additional diesel generators on drilling rigs using APG’s “Turbocharged Natural Gas” brand dual fuel system.
“Many of our customers drill under some of the harshest operating conditions in North America,” Collicutt Energy CEO Steven Collicutt says in an APG release. “The proven reliability, performance and economic returns of the APG dual fuel solution under these circumstances has led to increasing demand from new and existing customers.”
A Million per Year per Rig?
“APG provides our customers with a significant competitive advantage in a very bottom-line driven industry,” Collicutt said. “Several of our oil and gas drilling and service company clients estimate a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG’s dual fuel solution.”
“We are already over 250% of last year’s Canadian revenue and anticipate our penetration into the Canadian market to accelerate through our relationship with Collicutt,” said APG CEO Lyle Jensen.
“In addition to the fact our Canadian customers continue to see over 50% diesel displacement ratios, we feel the fact that APG’s dual fuel system was the first and remains the only solution to obtain CSA Inspection and Acceptance stickers in the oil & gas industry to be a strong selling point.
The CSA mark is similar to UL/Underwriters Lab approval in the U.S., Jensen said.
APG describes its dual fuel technology as “a unique non-invasive energy enhancement system” that can make use of LNG, CNG, biomethane or well-head gas, “with the flexibility to return to 100% diesel fuel operation at any time.” Diesel displacement can be as high as 80% of the normal diesel fuel consumption, with average displacement ranging from 40% to 65%.
Ed Wolf is stationary business development manager for APG.Contact information is only available to premium subscribers. Click here to purchase a premium subscription.
Source: American Power Group with HHP Insight follow-up