American Power Group Expands “Fueled By Flare” Initiative
American Power Group has signed a license agreement with Trident Resources for the exclusive worldwide right to commercialize Trident’s proprietary Natural Gas Liquid (“NGL”) process technology. In addition, APG purchased all of Trident’s operating assets including two existing mobile NGL operating systems currently servicing remote or stranded well-sites for one of the top five E&P companies in the Bakken region.
APG has also secured a verbal commitment for $3.25 million of additional project lease financing to immediately build two additional NGL operating systems. These next generation NGL systems will include the first NGL system with the capability to convert the unconventional Bakken flared gas into a premium quality natural gas for all local APG dual fuel stationary and vehicular applications.
Remote and stranded well sites are under increasing regulatory requirements to either capture and liquefy the flared gas into NGL or significantly reduce oil output. In the Bakken, there are over 2,500 well sites classified as remote or stranded. In North America, there are thousands more well sites that have similar classification where pipeline access will never be logistically or economically feasible. An average remote or stranded well site producing one to two million cubic feet of flared gas per day has the capacity to produce several million gallons of NGL and over a million equivalent diesel gallons of natural gas on an annual basis.
Trident has developed and exclusively licensed to APG their standard NGL processing configuration as well as their latest proprietary NGL compression/refrigeration process to meet the highest Bakken regulatory capture rate of 90 percent. More importantly, the new NGL process will be able to produce natural gas capable of being used for both stationary and vehicular APG dual fuel applications.
The Trident modular NGL system is constructed on mobile skids and trailers for scalability and ease of transfer from site to site to optimize E&P flare capture rates. APG has created a Trident NGL Services Division that will launch in the Bakken region with expectations of expanding our Flare to Fuel capabilities to other oil and gas fields in North America and, eventually, other regions of the world.