General Electric Company (NYSE:GE) announced today that they will be providing components to ProWater for their Centerline modular saltwater disposal (SWD) and deep injection well (DIW) systems, which the company indicates that it separates oil, water and other byproducts produced in oil and gas operations.
Removal of well contaminants are on the rise and ProWater is in the business of doing exactly that. The company develops technology for disposing saltwater produced from oil and gas wells. The Centerline SWD systems are poised to be used in deep injection wells according to the company. The boom of oil shale in North Dakota is where ProWater’s systems will be implemented.
ProWater released the following statement regarding the components agreement with GE, “GE Oil & Gas has a proven reputation for manufacturing quality oil and gas production equipment that meets the usability and durability requirements of rigorous oil field environments,” said Keith Morlock, president of ProWater. “GE’s horizontal injection surface pumping systems (SPS), variable speed drives and logic control devices are well-suited for the construction of our advanced Centerline SWD™ saltwater disposal systems. We are working closely with GE to quickly ramp up production of our improved, modular SWD/DIW design, to improve efficiency and meet demands from Bakken Shale oil and gas producers.”
“Oil and gas production companies need to resolve the issues of how to dispose of the salt, oil and mineral-laden water resulting from oil and gas production,” added Morlock. “In North Dakota and other oil and gas regions, the only government-authorized solution is injection into SWD/DIW wells with similar water that lies far below drinking water sources. With GE modular solutions and other strategic partners, we are able to maintain full manufacturing and construction capacity year round, which provides us with a competitive advantage.”
ProWater expects the first Centerline SWD system will be delivered in North Dakota by the end of January, 2012. Completion of the system for utilization is expected to be done a couple months later in March, 2012. Further installation completions have an estimate time arrival of June, September, and near the end of the year in November, 2012. ProWater has forecast that three additional wells will be completed in 2013 which at that point there would be seven Centerline SWD systems operational in the North Dakota Bakken Shale.
Lastly, GE released the following statement regarding the components agreement with ProWater, “Our SPS systems, drives and controls are a natural fit with ProWater, and we are eager to support the growth of such an environmentally responsible, efficient, byproduct disposal system,” said Gareth Ford, president and CEO of GE Oil & Gas’ Artificial Lift segment. “ProWater is a pioneer in the field of sustainable technology, and we are looking forward to a successful partnership developing innovative solutions to solve today’s environmental challenges.”
Shares of GE closed down at the end of trading today to $16.71 per share, partially refilling the bullish price gap of October 27th, 2011.