DIVERGENT Energy Services Corp.: Release of Q2 Interim Results, Operating Highlights and Director Retirement
V.DVG | August 28, 2015
CALGARY, ALBERTA–(Marketwired – Aug. 28, 2015)
DIVERGENT Energy Services Corp. (the “Corporation”) (TSX VENTURE:DVG) has released its financial results for the three and six months ended June 30, 2015 and provides the following highlights.
The Corporation is pleased to report that it has begun production of the second generation of its Linear Electric Submersible Pumps (the “Pump”), and expects the first installation in October 2015. The new Pump design reflects what was learned from prototypes that were installed earlier in 2015. Additional installations are expected to follow the successful deployment of the first Pump, with inventory to be available in Canada and the United States.
The Corporation provides electric submersible pumps to natural gas producers in the Powder River Basin from its base in Gillette, Wyoming. The Corporation’s activity levels began to improve despite the steep decline in overall activity in the region. Although the operation generated decreased period-over-period sales of USD $1.4 million and USD $1.2 million in Q1 and Q2 respectively, the Q2 results were above expectations. These results arose from continued market share growth during the quarter. The Gillette operation is in its third year of being cash flow positive.
DIVERGENT’s Mexico Construction Finance segment expects to collect on a recently completed project in Q4. The proceeds are anticipated to be USD $1,660,000 and will provide the Corporation with additional working capital to further commercialize the Pump.
Our market share in the Powder River Basin, which has risen over the last several quarters, is expected to continue to rise. Recent acquisitions of natural gas assets in the basin may result in additional contracts being awarded to Divergent. The Corporation continues to be mindful of discretionary spending, placing a strong focus on business fundamentals and the conservation of cash.
DIVERGENT’s management believes that growth opportunities will continue to present themselves over the next few quarters, both from consolidation of producers’ assets and from those competitors who have not taken the necessary steps to prepare for today’s limited market activity. DIVERGENT will continue to advance the permanent magnet motor and pump technology while strengthening the foundation of its conventional submersible pump business. Producers are seeking out innovations that drive down operating costs, and DIVERGENT’s Pump is targeted at eliminating the ongoing cost of rod and tubing wear in oil wells.
ABOUT THE PUMP
The permanent magnet motor technology duplicates rod pump movement without rod string or surface lifting equipment. All moving parts are contained within the submersible pump housing, eliminating rod and tubing wear, making the Pump ideally suited for landing in deviated or horizontal oil wells and as an alternative to conventional pump jack installations.
Mr. Bob Tutty has retired from the Corporation’s board of directors effective August 27, 2015. Ken Berg, President and CEO states, “Mr. Tutty played a significant role in the early development days of the Corporation, and we thank him for his service and contributions since 2010 and wish him the very best in his retirement.”
The Corporation’s complete set of June 30, 2015 financial statements and corresponding management’s discussion and analysis have been filed on the SEDAR website at www.sedar.com and are also available on the Corporation’s website at www.divergentenergyservices.com.
Further information can be accessed at www.divergentenergyservices.com
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.
DIVERGENT Energy Services Corp.
President and Chief Executive Officer
DIVERGENT Energy Services Corp.
Chief Financial Officer and Corporate Secretary
August 28, 2015 – 9:00 AM EDT