BOYNTON BEACH, FL - Puradyn Filter Technologies Inc., continues to expand business with initial orders for more than 200 puraDYN bypass oil filtration systems from a major global land and offshore oil platform service contractor. These first orders will create an initial population of systems for this customer, which represents a continuing $130,000 in annual replacement filter sales. Additional orders are expected for generators and hydraulic systems on this company's oil platforms.
Further, with the current population of puraDYN bypass oil filtration systems already in service in this industry; this will bring the potential annual replacement filter revenues to nearly $300,000.
This is the most recent of several companies in the oil and gas servicing industry that have approached Puradyn. The puraDYN systems are utilized on generators used on land and offshore oil drilling platforms and are able to significantly reduce oil maintenance needs and costs by keeping engine oil continuously clean and in good working order.
These most recent purchase orders, like most of the other oil rig service companies is again for the TF-240 model; the largest model that efficiently and effectively cleans engine oil in equipment having large capacity oil sumps holding up to 300 quarts (284 Liters) of oil. Due to the significant size of the oil sumps in these applications, many of the engines will require more than a single TF-240.
Kevin Kroger, president and COO said, "We have been working with users of large diesel engines that are most affected by the expected higher oil prices. The equipment used in this industry is massive, often requiring multiple units of our product on each engine, and our customers have indicated that our TF-240 system is producing the results they have been looking for with regard to reducing oil maintenance costs and downtime.
"In 2008, there were approximately 525,000 producing oil wells in the U.S. With respect to the natural gas wells, while 2008 numbers have not yet been released, in 2007 there were 452,768 of these wells. All of the equipment used in bringing oil and gas to the surface is appropriate for our bypass oil filtration system. Land rigs will range from as small as one engine to a multiple of up to 6 engines, while offshore rigs typically use larger engines and could have as many as 8 to 15 engines depending on the depth of the hole and their location."
Kroger continued, "Additionally, the short-term outlook is that oil prices will consistently rise with cold weather approaching and longer-term prognostications indicate oil pricing in the $80-90 a barrel range."
Kroger concluded, "The success we have had in applying our technology to this type of application, often situated in remote locations, having a high oil sump capacity and needing to be operable 24/7, is the reason these companies are approaching us. By keeping oil continuously clean, the engine runs with less friction, making it run more efficiently. Not only does this reduce oil-related maintenance but reduces overall maintenance problems thus extending the useful life of engines, which in many cases are valued as much as a million dollars. A further benefit is the reduction of fuel consumption as a result of the cleaner, more efficient operating engines."
