Regulator’s Bid to Improve Oilfield Safety seen Boosting Nitrogen Use
Lexington Energy Services Inc. (OTCBB: LXES)
Lexington Energy’s Innovative System Poised to Help Meet Growing Demand
CALGARY, Feb. 15 /PRNewswire-FirstCall/ – Lexington Energy Services Inc. (LXES.OB): Regulators of Alberta’s oil industry are very concerned about the current frequency and consequences of fires and explosions associated with well servicing and completions. In the near future, the Alberta Energy and Utilities Board anticipates adopting revised regulations developed together with industry to help prevent further incidents.
“Lexington Energy has been anticipating a move like this for some time,” said chief operating officer, Brent Nimeck. “Over the course of the last three years, I’ve been designing and developing the first mobile nitrogen generation system capable of producing nitrogen pure enough to improve safety in a variety of oilfield applications – and now it’s here.”
In the oil and gas industry, nitrogen is used to displace oxygen in wells to eliminate the risk of causing a fire or surface explosion. Revised safety regulations are expected to lead to an increased demand for nitrogen.
The problem however, is that for many applications conventional liquid nitrogen systems are simply inefficient. They require trucking thousands of gallons of liquefied nitrogen from the point of production to a transfer station and then securing access to a field-pumping unit, which then has to travel to the location in the field where the nitrogen is actually required.
On-site generation is the only way to guarantee that oil and gas customers will get the uninterrupted supply of nitrogen they need.
“There are some other on-site nitrogen generation systems on the market today,” says Mr. Nimeck, “but they are barely capable of producing 95% purity. Our system represents a significant leap in the application of technology, and is fully capable of producing 98-99.5% pure nitrogen.”
As it develops procedures to help curb incidents of fire and explosion, the Alberta oil industry has recognized that on-site nitrogen generation has the potential to introduce oxygen into potentially explosive environments in a well. The industry warns that, “systems must be operated at an appropriate purity level to avoid potentially explosive mixtures.”
In certain circumstances, as little as 6% oxygen can create a potential explosive mixture down hole. Therefore, systems that are only capable of producing 95% pure nitrogen could be a concern.
“This is where Lexington Energy’s nitrogen system shines,” says Mr. Nimeck. “In addition to being considerably more convenient than conventional liquid nitrogen systems, ours is the only on-site generation system capable of generating 98-99.5% pure nitrogen – so Lexington Energy’s system is simply safer.”
Lexington Energy’s nitrogen generation system can be easily transported to an oil or gas well. This allows the system to generate a continuous supply of nitrogen – on location – without any of the hazards or additional costs associated with old-fashioned liquid nitrogen.
Lexington Energy’s system extracts nitrogen from the air and purifies it from its original 78% all the way to 98-99.5% purity. Unlike some other designs that top out at 95% purity, this new system goes the next step and processes twice the volume of air to reach the critical minimum of 98% pure nitrogen needed for many applications.
Lexington Energy aims to feed the voracious and growing appetite for nitrogen generation. By taking advantage of the exclusive supply relationships cultivated with the industry’s leading suppliers of our system’s critical components, Lexington Energy is confident it will be able to set the new standard in nitrogen generation, equipment and supply.
For more information, please see:
Alberta Energy and Utilities Board “Well servicing and completions
operations: Interim requirements regarding the potential for explosive
mixtures and ignition in wells”
Directive 033 (6 February 2006)
http://www.eub.gov.ab.ca/bbs/documents/directives/Directive033.pdf
and
Enform “Fire and explosion hazard management” Industry Recommended
Practice, vol. 18
Sactioned January 2007, published February 2007
http://www.enform.ca/assets/files/IRP%2018%20Presentation%20to%20CAPP.pdf
CONTACT: Mark Procknow, Corporate Communications, Lexington Energy Services Inc., Calgary, AB, (403) 279-4585
Source: Lexington Energy Services Inc.
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