DIVERGENT Energy Services Corp. 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 its Gillette 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 coalbed 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 its existing service area and into other oil basins nearby is having the correct inventory on hand to realise current and future opportunities. The company’s strategy is focused on a specific set of producers and the alignment of its sales efforts with its available inventory to maximise the number of clients it can service with an efficient amount of product.
Linear electromagnetic submersible 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 US. Discussions are underway for access to a test well in the Southern US for long-term use. Once the company has demonstrated longer run times and are able to deliver a proven solution, it expects the current barriers to installations in Canada will cease to exist and it will re-enter the Canadian market.
Strategy to move forward
The corporation recognises 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 its control.
The key strategies are as follows:
- 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.
Read the article online at: https://www.worldcoal.com/cbm/30012019/divergent-energy-services-provides-operations-update/