Questor gains Bakken, Permian clients for waste gas systems

By Questor Technology Inc. | November 26, 2018

Questor Technology Inc., a provider of high efficiency waste gas combustion systems, has secured contracts worth approximately $5 million in two new markets and one existing market. The new markets are North Dakota and Texas that now combine with it’s existing Colorado client base. Over 35 percent of its current rental fleet is now committed to contracts ranging in term from 6-months to 24-months.  It is expected that over 90 percent 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 U.S. EPA testing procedures in North Dakota and, once again, confirmed its performance in excess of 99.99 percent.  Its high-performance emissions control delivers value in the form of increased oil production for clients while limiting NOx and VOCs to low and compliant levels. Questor expects that approximately 30 percent of the existing rental fleet will be operating in 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 has confirmed 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 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 of sales and marketing, said, “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 Center in North Dakota and is 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,” said Audrey Mascarenhas, Questor’s president and CEO. "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.”