Lexington Energy Services Inc. (OTCBB: LXES)
Calgary-based Ccompany Reveals System Aimed at Changing Way Oil Industry Uses Nitrogen
CALGARY, March 1 /PRNewswire-FirstCall/ – Lexington Energy Services Inc. (LXES.OB) revealed the prototype of its next-generation nitrogen system in Calgary last week to members of the industry and press with hopes of capturing a significant portion of a rapidly expanding market.
“Nitrogen generation isn’t the only thing we do at Lexington Energy Services, but it may be the one with the most potential to reshape part of the oil and gas industry,” said Lexington Energy COO Brent Nimeck.
The new nitrogen generation system, designed by Mr. Nimeck, captures nitrogen from the air on location before concentrating and purifying it for use in a number of applications, particularly oil and gas.
“I liked what I saw,” said Bob Kooyman, a frontier operations engineer with Talisman Energy Inc. Mr. Kooyman said there “definitely was a market” for such a high purity system, particularly when adapted for the many oil and gas operations that do not have access to the infrastructure required for traditional nitrogen systems.
Nitrogen is used to displace oxygen in oil or gas wells to eliminate the risk of a fire or surface explosion and to prevent damaging corrosion of downhole equipment when working with sour oil or gas.
“The problems with conventional liquid nitrogen,” according to Mr. Nimeck, “stem from logistics and cost, as well as some safety hazards.”
“Our innovative system dramatically reduces each and every one of those problems by producing high purity nitrogen right on location without needing to liquefy or transport it.”
Wave Energy VP of Engineering Vernon Hoshizaki told business reporter Dave Sims, who covered Lexington Energy’s demonstration for CBC Newsworld and CBC Calgary’s evening news: “When you need to use a gas, such as nitrogen or CO(2) and you don’t have to transport it, it definitely cuts the costs.”
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 such incidents.
Revised safety regulations are expected to lead to an increased demand for nitrogen, which is already in high demand.
Lexington Energy’s nitrogen generation system captures nitrogen from the air, rids it of impurities, and concentrates it to 98-99.5 per cent purity.
“Unlike some other designs that top out at 95 per cent purity,” says Lexington Energy’s Mr. Nimeck, “our technology goes the extra mile and processes twice the volume of air necessary to reach the gold standard of at least 98 per cent required for many applications.”
Possible applications of Lexington Energy’s system could be adapted to include offshore oil platforms, oil and gas well completions, pipeline testing, under-balanced drilling, oil tanker or rail car purging, refinery turn around or maintenance, and snuffing out underground coal mine fires.
Lexington Energy Services Inc. is a publicly-traded company (OTCBB: LXES – News) manufacturing innovatively designed service equipment for the rapidly expanding oil and gas industry.
CONTACT: Mark Procknow, Corporate Communications, Lexington Energy Services Inc., Calgary, AB, (403) 279-4585
Source: Lexington Energy Services Inc.
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