LYNNFIELD, Mass., Aug. 15, 2017 (GLOBE NEWSWIRE) -- American Power Group Corporation (OTCQB:APGI), today announced it will extend the filing of its June 30, 2017 Quarterly Form 10Q via SEC Form 12b-25. On June 6, 2017, the company announced a corporate wide realignment of its strategic direction, reallocation of resources and reduction in workforce in response to significant operating losses due to the impact that continuing low oil prices were having on the company’s dual fuel and flare capture businesses. The realignment resulted in a reduction in annual operating costs of over $2 million on a go forward basis.
Chuck Coppa, APG’s CEO/CFO stated, “The fundamental conditions facing our dual fuel business over the last several years have not changed. With oil prices remaining below $50 per barrel, the price differential between oil and natural gas remains extremely tight. The resulting delays in customer orders have negatively impacted our dual fuel operations and have made them no longer sustainable. Our efforts since June to secure licensing relationships, master distributorship relationships and/or joint marketing relationships with several of the largest domestic natural gas retail/wholesale gas suppliers have not generated material traction. Despite favorable economic conditions in the Mexican market, delays in securing material orders as well as our limited access to working capital have forced us to discontinue operating as we have been in that market.”
Mr. Coppa added, “Market conditions for our flare capture and recovery services in the Bakken region of North Dakota continue to be very soft, again due to low oil prices and reduction in the number of drill rigs operating in the region. We do not foresee any material positive changes in flare capture market conditions in the near term and have therefore elected to discontinue our flare capture initiative. As a result, we will report an impairment loss relating to our flare capture operations of approximately $1.5 million during the three months ended June 30, 2017. We are currently in discussions with several parties regarding the sale of all flare capture equipment, the proceeds of which would reduce our existing secured obligations. We cannot, however, be assured of the success of these efforts.
Mr. Coppa noted, “As a result of the foregoing and our limited access to additional near term capital, our Board of Directors is evaluating several alternatives, including the immediate closure of operations.”
About American Power Group Corporation
American Power Group’s subsidiary, American Power Group, Inc. provides cost effective products and services that promote the economic and environmental benefits of our alternative fuel and emission reduction technologies. Our patented Turbocharged Natural Gas® Dual Fuel Conversion Technology is a unique non-invasive software driven solution that converts existing vehicular and stationary diesel engines to run concurrently on diesel and various forms of natural gas including compressed natural gas, liquefied natural gas, conditioned well-head/ditch gas or bio-methane gas with the flexibility to return to 100% diesel fuel operation at any time. Depending on the fuel source and operating profile, our EPA and CARB approved dual fuel conversions seamlessly displace 45% - 65% of diesel fuel with cleaner burning natural gas resulting in measurable reductions in nitrogen oxides (NOx) and other diesel-related emissions. See additional information at: www. americanpowergroupinc.com.