Capstone Receives 5MW Follow-On Order for Global Upstream Oil & Gas Producer
CHATSWORTH, Calif., Feb. 4, 2013 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that it received a 5 MW follow-on order for a global upstream oil and gas producer. The five C1000 power packages will be installed in the Eagle Ford Shale play in Texas. This order increases this particular oil and gas producer's total Capstone fleet to 10 MW in the Eagle Ford play.
Capstone distributor Horizon Power Systems secured both the initial order and this latest follow-on order for five megawatts.
"North American shale gas producers are continuing to adopt Capstone microturbines because they want the high reliability and low emission benefits of our products," said Sam Henry, Horizon Power Systems President. "In addition, this customer is committed to conducting business safely, in a socially and environmentally responsible manner which is precisely what Capstone microturbines deliver."
The Eagle Ford Shale is a hydrocarbon producing formation rich in oil and natural gas fields. The shale play area starts at the Texas-Mexico border in Webb and Maverick counties and extends 400 miles toward East Texas. The play is 50 miles wide and an average of 250 feet thick at a depth between 4,000 and 12,000 feet. The shale contains a high amount of carbonate which makes it brittle and easier to use hydraulic fracturing to produce the oil or gas. The oil reserves are estimated at 3 billion barrels with potential output of 420,000 barrels a day.
The microturbines will provide power for liquid processing plants and will be located at multiple central gathering plants. The microturbines, fueled by pipeline quality gas, will produce electricity to provide all power to the onsite equipment, including heaters, pump motors, compressors and distribution panels.
Capstone continues its penetration of the North American shale gas market with another substantial order from an existing customer. "The oil and gas market continues to be our fastest growing market worldwide," said Jim Crouse, Capstone's Executive Vice President of Sales and Marketing.
"Most of today's global oil and gas companies operate in unique geographical, environmental and socially challenging areas in relatively isolated parts of the world. It is important that when they operate in these sensitive ecological areas near local communities they select the right state of the art equipment," said Darren Jamison, Capstone's President and Chief Executive Officer.
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 over 6,500 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.
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This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages of our products and growth of the oil and gas market. 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.
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Released February 4, 2013