APG Wins DF Technology Order for Fracturing Rig

American Power Group Corporation announced their subsidiary, American Power Group Inc., has received an order valued between $400,000 to $500,000 to upgrade and convert twelve high pressure diesel engines used for hydraulic fracturing to APG’s S3000 Dual Fuel Turbocharged Natural Gas® system for a new fracturing rig customer operating in the Eagle Ford shale region of Texas.

SourceOne Engine Equipment, LLC, one of APG’s domestic Dealer/Certified Installers booked the order and the company expects the units to be shipped during the June 2014 quarter. While the end customer and the exact value of the order was not disclosed for proprietary reasons, APG said it believes the customer is among the top hydraulic fracturing and pressure pumping oil and gas service companies in the United States.

The Railroad Commission of Texas reports the Eagle Ford shale region is approximately 50 miles wide and 400 miles long running from South Texas into East Texas. The first drilled site occurred in 2008, and since then, the Eagle Ford shale region is reported to be one of the most active shale plays in the world with over 220 operating rigs. The shale region produces both oil and gas from various depths ranging from 4,000 ft. to 12,000 ft. The Railroad Commission reports several of the major operators in the Eagle Ford include Anadarko, Apache, Atlas, EOG, Lewis Petro, Geo Southern, Petrohawk, Pioneer, SM Energy and XTO. Of these operators, half have converted varying numbers of their oil and gas diesel engines to APG’s S3000 Dual Fuel Turbocharged Natural Gas® system throughout North America.

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Press Release, June 5, 2014