Capstone Receives Multiple Orders for Customers in the Permian Basin Shale Play
January 17 2014 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today that it has received
orders for two Capstone C1000s and an order for 25 Capstone C65
microturbines to be used for oil and gas production in the Permian
Basin located beneath west Texas and southeastern New Mexico.
According to an October 2013 article in Investors Daily, the
Permian Basin receives a fraction of the press coverage accorded
the Bakken and Eagle Ford, but it has more production potential
than these two shale formations combined. The Permian is not just a
shale oil play, nor is it a recently developed basin. The Permian
currently produces some 900,000 barrels per day of crude, about 12
percent of US oil production. Some analysts expect Permian
production to more than double by 2018 to 2 million barrels per day
— a level last reached during the 1970s. The Permian Basin is
projected to still contain recoverable oil and natural gas
resources exceeding what has already been produced. Industry
experts estimate that, at current prices, more than $3 trillion
worth of oil and more than $300 billion of natural gas are yet to
be extracted. These projections dwarf the combined estimated
reserves for the Bakken and Eagle Ford.
Horizon Power Systems secured the order for the two Capstone
C1000 microturbines to be used by an independent oil and gas
producer in the area. This marks Capstone's first multiple megawatt
project in the Permian Basin after previously installing multiple
C30s and C65s at project sites in the region. The C1000s will
replace unreliable grid service from the local utility and be used
to power the client-owned electric grid. This small local grid will
supply power to various well locations in addition to the field
operations office. The site is expected to be commissioned in
March.
Horizon Power Systems also ordered 25 Capstone C65 microturbines
to expand operations for multiple existing clients in the Permian
Basin. This repeat business demonstrates a high level of customer
satisfaction with Capstone microturbines, helping to cement
microturbine technology as a preferred option in the U.S. oil and
gas industry.
Capstone microturbines were chosen due to their reduced
maintenance costs, low exhaust emissions, and higher reliability
than traditional engine based generation. The microturbines easily
meet Tier 4 emission standards without requiring
aftertreatment.
"The Permian Basin currently contributes about 14 percent of the
nation's overall oil and gas production," said Sam Henry, Horizon
Power Systems President. "Horizon is pleased to continue to
expand our presence in this dynamic area. This sale – the
first multiple megawatt Capstone microturbine installation in the
Permian Basin – follows several other C65s and C30s already in
place there. Low-emission, low-noise, and low-maintenance
Capstone microturbines are the go-to solution for running onsite
equipment and meeting customers' power requirements in the Permian
Basin."
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:
CPST) is the world's leading producer of low-emission microturbine
systems and was the first to market commercially viable
microturbine energy products. Capstone Turbine has shipped
approximately 7,000 Capstone Microturbine systems to customers
worldwide. These award-winning systems have logged millions of
documented runtime operating hours. Capstone Turbine is a member of
the U.S. Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO
14001:2004 certified company, Capstone is headquartered in the Los
Angeles area with sales and/or service centers in the New York
Metro Area, Mexico City, Nottingham, Shanghai and Singapore.
The Capstone Turbine Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6212
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about the use of
our products in the oil and gas market and opportunities in the
Permian Basin Shale Play. Forward-looking statements may be
identified by words such as "expects," "objective," "intend,"
"targeted," "plan" and similar phrases. These forward-looking
statements are subject to numerous assumptions, risks and
uncertainties described in Capstone's filings with the Securities
and Exchange Commission that may cause Capstone's actual results to
be materially different from any future results expressed or
implied in such statements. Capstone cautions readers not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this release. Capstone undertakes no
obligation, and specifically disclaims any obligation, to release
any revisions to any forward-looking statements to reflect events
or circumstances after the date of this release or to reflect the
occurrence of unanticipated events.
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
CONTACT: Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
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