American Power Group, Inc. (APG) has received $750,000 in follow-on purchase orders since October 1st from Collicutt Energy Services, its stationary authorized dealer and certified installer in Alberta and Western Canada.

The orders are for the upgrade and conversion of additional diesel generators on drilling rigs using APG’s Turbocharged Natural Gas™ Dual Fuel System. While the end customers were not disclosed for proprietary reasons, these customers are ranked among the top oil and gas exploration and drilling companies in Canada and North America.

Steven Collicutt, CEO of Collicutt Energy Services, stated, “Many of our customers drill under some of the harshest operating conditions in North America. The proven reliability, performance and economic returns of the APG dual fuel solution under these circumstances has led to increasing demand from new and existing customers. Mr. Collicutt added, “APG provides our customers with a significant competitive advantage in a very bottom-line driven industry. Several of our oil and gas drilling and service company clients estimate a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG’s dual fuel solution.”

Lyle Jensen, CEO of American Power Group, stated, “We are pleased to see continued strong interest in the Canadian market from some of the leaders in the oil and gas drilling services market. We are already over 250% of last year’s Canadian revenue and anticipate our penetration into the Canadian market to accelerate through our relationship with Collicutt Energy Services.” 

Mr. Jensen added, “In addition to the fact our Canadian customers continue to see over 50% diesel displacement ratios, we feel the fact that APG’s dual fuel system was the first and remains the only solution to obtain CSA Inspection and Acceptance stickers in the oil & gas industry to be a strong selling point. Similar to Underwriters Lab (“UL”) approval in the United States, the CSA Inspection and Acceptance mark shows that a product has met CSA’s recognized standards for safety and performance.”