American Power Group Inc. (APG) has signed a license agreement with Trident Resources LLC for the exclusive worldwide right to commercialize Trident's proprietary natural gas liquid (NGL) process technology. APG says it sees the opportunity to use the technology to expand its ‘Fueled By Flare‘ initiative and produce natural gas for vehicular use in the Bakken region of North Dakota.
In addition, APG purchased substantially all of Trident's operating assets, including two existing mobile NGL operating systems currently servicing remote or stranded well sites for an E&P company in the Bakken region. APG has also secured a verbal commitment for $3.25 million of additional project lease financing from several existing shareholders and investors affiliated with members of its board of directors to immediately build two additional NGL operating systems.
APG says these NGL systems will include the first NGL system with the capability to convert the Bakken flared gas into a natural gas for all local APG dual-fuel stationary and vehicular applications.
‘The Bakken region of North Dakota is an area facing significant penalties and restrictions through the year 2020 associated with the flaring of their well head gas,’ states Lyle Jensen, CEO of APG. “We are very comfortable moving into this new vertically integrated space, given the fact that approximately 85 percent of APG's North American dual-fuel oil rig conversions are currently operating on conditioned well head gas.”
‘We see a very large addressable market in the thousands of heavy-duty trucks supporting the oil and gas production industry,” adds Jensen. “The ability to use conditioned wellhead/flared gas to safely dual fuel these trucks can provide an operator with a competitive economic advantage, as well as help address a significant challenge for the E&P companies who have to significantly reduce the flaring of their wellhead gas before 2020.”
APG has created a Trident NGL Services Division that will launch in the Bakken region, with expectations of expanding to other oil and gas fields in North America and, eventually, other regions of the world.
More details about the deal and Trident's technology is available here.