CALGARY, Alberta, May 19, 2020 (GLOBE NEWSWIRE) -- DIVERGENT Energy Services Corp. (“Divergent” or the "Company") announces it has resumed operations in its Gillette Wyoming facility.
Return to Work and Startup of Operations
The Company has been successful in accessing the Paycheck Protection Program in the United States, which has provided funding for 100% of wages, benefits, rent and utilities for an eight-week period. The US-based staff that had been laid off have been rehired and have been busy preparing for a return to work.
The Company’s largest client that had temporarily suspended operations has seen recent signs of improvement in the price of its natural gas and is ordering pumps on a limited basis. Accordingly, we began installing pumps on Monday May 18, 2020. The amount of work to be performed in the immediate term has not been specified due to its reliance on the price of gas.
We continue to work closely with our creditors and suppliers to manage a successful return to work, managing our financial resources until industry activities fully resume. Divergent is continuing to observe safe working practices as it relates to the COVID-19 pandemic and do not anticipate any issues arising as a result.
For Further Information:
Ken Berg, President and Chief Executive Officer, kberg@divergentenergyservices.com
Lance Mierendorf, Interim Chief Financial Officer, lmierendorf@divergentenergyservices.com
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, Divergent provides Artificial Lift products and services that are used in the oil and gas industry. Product lines including Electric Submersible Pumps, Electric Submersible Progressing Cavity Pumps, and the ongoing development of an Electromagnetic Pump technology.
DIVERGENT Energy Services Corp., 2020, 715 – 5th Ave SW, Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax), www.divergentenergyservices.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including, without limitation, statements pertaining to anticipated future operational activity levels of Divergent and of a majority of its customers statements pertaining to the continued suspension of trading of the Company’s shares by the TSXV, and statements pertaining to interest payments on the Company’s debentures. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties, including: the risk that the anticipated slowdown in sales and service of submersible pumps by Divergent’s customers lasts longer than expected or impacts Divergent’s revenues more severely than expected, the risk that the COVID-19 pandemic and the low oil and gas price environment cause additional negative effects on Divergent’s business, the risk that the suspension of trading of the Company’s common shares by the TSXV cannot be lifted in a timely manner or at all, and the risk that the Company cannot remedy the outstanding interest payments under the terms of its debenture indenture in a timely manner or at all. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. Forward-looking statements are based on estimates and opinions of management of the Company at the time the information is presented, including expectations provided to Divergent by its customers. The Company may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
This press release contains financial outlook information ("FOFI") about prospective revenue reductions, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date hereof and was provided for the purpose of providing an update regarding an anticipated material reduction in near-term revenue. Divergent disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(Not for dissemination in the United States of America)