Global Energy-Lufkin JV to Market HSP Technology
Global Energy Services has signed an exclusive licensing agreement with Lufkin Industries of Lufkin, Texas, for Global's patented Hydraulic Submersible Pump (HSP) technology. The Global/Lufkin Joint Venture agreement that had previously been in place since September 8, 2008 with ILS (International Lift Systems), a wholly owned subsidiary of Lufkin, has been transitioned to a licensing agreement with Lufkin.
Lufkin is licensed to develop market and service the HSP technology outside of Canada, worldwide. Global will continue to market and service the HSP products and technology in Canada. The licensing agreement gives Global the option of purchasing HSP component pump parts from Lufkin, built in their Houston facility, for assembly and sale in the Canadian market. Lufkin will further develop the technology for new applications globally and market the HSP under their branding and trade marking.
The HSP technology is currently being used successfully by several large Independents in various shale plays in the USA, including Barnett and Fayetteville. It has a proven track record in Western Canada, where it was designed, and has been used in over 100 wells in the deliquefaction of conventional gas and CBM wells, its original target market. More recently, the HSP has been successfully applied to pumping horizontal oil wells in the emerging resource plays of Western Canada.
This agreement will leverage Global's HSP artificial lift technology into every oil and gas market in the USA via Lufkin's domestic service centers and internationally via Lufkin's centers worldwide, providing exposure for the HSP technology to markets developed by Lufkin.
Derek Begin, president of Global Energy Services, is quoted as saying "By signing this licensing agreement with Lufkin, the HSP has achieved a new dimension of engineering, and a world wide marketing presence. The HSP will now become international."