Questor Technology Inc. Enters Into $5.0MM of Longer Term Rental Contracts in North Dakota, Texas and Colorado
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CALGARY, Alberta , Nov. 26, 2018 (GLOBE NEWSWIRE) — Questor Technology Inc. (“Questor” or the “Company”) (TSX-V: QST) a world leader in providing high efficiency waste gas combustion systems is pleased to announce it has secured contracts worth approximately, $5.0 MM in two new markets and one existing market. The new markets are North Dakota and Texas that now combine with our existing Colorado client base. Over 35% of our current rental fleet is now committed to contracts ranging in term from 6 months to 24 months. Further, it is expected that over 90% of this revenue will be recognized in 2019. For Questor, North Dakota and Texas signal new regions where producers are actively reviewing their emissions and looking at ways to manage them.
Approximately $3.2 million of the $5 million in rental contracts are with new clients in the state of North Dakota. In October, Questor was independently tested under EPA testing procedures in North Dakota and, once again, confirmed its performance in excess of 99.99%. In what can be referred to as a game-changing solution, our high-performance emissions control delivers value in the form of increased oil production for our clients while limiting NOx and VOCs to low and compliant levels. Questor expects that approximately 30% of the existing rental fleet will be operating in the State of North Dakota during 2019.
The Company recently announced that rental units are scheduled to be mobilized to Texas in the fourth quarter of this year. Questor is pleased to confirm that it has secured a 24 month contract with a new client in Texas commencing December 2018. The contract represents approximately $1.0 million of the $5 million announcement. The Permian Basin continues to be active while facing flaring restrictions in an area lacking sufficient infrastructure to handle the associated gas produced with the oil. This lack of pipeline take-away capacity in the basin is creating interest in our rental equipment to deal with the gas.
Questor continues to enlist new clients for its rental fleet in Colorado which was one of the company’s objectives for 2018 and into the future. The balance of the $5 million announcement is a 12 month contract with a new client in the basin. Colorado’s Regulation 7 mandates the use of enclosed combustion and now targets methane, resulting in a statewide focus on the responsible management of potentially fugitive hydrocarbons.
Justin Mahendra, Vice President Sales and Marketing says, “With the implementation of these contracts Questor has successfully accessed the North Dakota and Texas markets while increasing our footprint in Colorado providing strategic diversification of our client and revenue base.”
With the significant increase in US demand, the Company recommenced the capital program and is currently building additional rental units that will be mobilized to the Colorado, North Dakota and Texas markets. In order to execute the contracts successfully Questor will open a service Centre in North Dakota and we are presently evaluating optimal locations.
“Questor will continue to commit capital to regions where producers are looking for high performing, cost-effective technologies to manage their waste gas and fugitive emissions,” commented Audrey Mascarenhas, Questor’s President and CEO. Mrs. Mascarenhas went on to say, “The opportunity for our technology solutions continues to grow and the team at Questor is ideally positioned to continue to deliver meaningful cost-effective innovative solutions while supporting new strategic areas.”
ABOUT QUESTOR TECHNOLOGY INC
Questor is a public, international environmental Cleantech company founded in late 1994 and headquartered in Calgary, Alberta, with field offices located in; Grande Prairie, Alberta; Brighton, Colorado; and Brooksville, Florida. The Company is active in Canada, the United States, Europe and Asia and is focused on clean air technologies that safely and cost effectively improves air quality, support energy efficiency and greenhouse gas emission reductions.
Questor designs, manufactures and services high efficiency waste gas combustion systems; as well as, power generation systems and water treatment solutions utilizing waste heat. Our proprietary incinerator technology is utilized worldwide in the effective management of methane, hydrogen sulphide gas, volatile organic hydrocarbons, hazardous air pollutants and BTEX gases ensuring sustainable development, community acceptance and regulatory compliance. Questor and its subsidiary, ClearPower Systems are providing solutions for landfill biogas, syngas, waste engine exhaust, geothermal and solar, cement plant waste heat in addition to a wide variety of oil and gas projects in Canada, throughout the United States, the Caribbean, Western Europe, Russia, Thailand, Indonesia and China. With a focus on solid engineering design, our products enable our clients to operate cost effectively in an environmentally responsible and sustainable manner.
Questor trades on the TSX Venture Exchange under the symbol ‘QST’.
|Audrey Mascarenhas||Dan Zivkusic|
|President and Chief Executive Officer||Chief Financial Officer|
|Phone: (403) 571-1530||Phone: (403) 539-4371|
|Facsimile: (403) 571-1539||Facsimile: (403) 571-1539|
|Email: email@example.com||Email: firstname.lastname@example.org|
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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