American Power Group Corporation said that its unit, American Power Group has secured $3.25 million of term loan financing from an institutional investor of which certain members are affiliated with several members APGI’s Board of Directors.
The proceeds will be used to purchase two additional flare capture and recovery systems that can monetize captured flared gas converted into natural gas liquids, APG said in a statement.
In addition, one of the two units will be able to produce compressed natural gas for APG’s turbocharged natural gas dual fuel conversion technology.
APG recently signed a license agreement with Trident Resources for the exclusive worldwide right to commercialize Trident’s proprietary NGL processing technology. APG purchased certain of Trident’s operating assets including two existing mobile NGL processing systems currently servicing remote or stranded well sites for one of the top five oil and gas exploration and production companies in the Bakken region of North Dakota.
The purchase of the two new additional systems is in response to an overwhelming demand from operators of existing remote/stranded well sites and allows APG to meet the more stringent flare capture regulations coming due in 2016 and 2020.
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 making this a multi-billion dollar regulatory-driven market.