SANTA ANA, Calif., SAN ANTONI0, Texas and BR0USSARD, La., Feb. 20 /
PRNewswire/ -- NuTek, Inc. (Nasdaq BB: NUTK) NuTek, Inc. announced
today it has entered into an agreement to purchase the proprietary
rights to the "High Volume Vacuum Pump" (The Pump). This
acquisition marks another step for NuTek in its mission to own low
cost technology for production of oil for the United States.
NuTek, Inc. recently entered into a contract to purchase Non-Magnetic
Rental Tools, Inc. d/b/a Non Mag, of Broussard, Louisiana.
Non-Mag is an oil field service company specializing in the rental
of downhole directional drilling equipment.
This pump should prove to be an attractive alternative for any well
which produces large volumes of fluid on a daily basis. The Company
estimates this pump will offer a "low cost solution" to a large
portion of the 600,000 existing wells in the U.S. and the 28,000
to be drilled this year. NuTek expects to maintain a $1,000 margin
of profit on each pump sold.
The Pump is expected to save money for the purchaser in two ways:
1. Initial Cost (75% less than competing pumping systems)
2. Operating Overhead (expected to reduce pumping costs by 2/3)
NuTek production testing is to begin February 26th on selected
wells owned in the Pearsall Austin Chalk field.
NuTek will use the pump, where effective, on wells it owns or will
purchase. It is currently formulating a marketing plan to sell the
pumps through Non Mag. The customer base of Non Mag includes an
elite list of domestic oil producers.
NuTek estimates that 20% to 25% of the wells it currently owns could
be significantly enhanced through utilization of the pump. Through
the utilization of these pumps, the Company estimates current oil
production could be improved by 45% to 50%. Field trials in Texas
will improve NuTek's bottom line, while data is accumulated to
determine the exact economic improvements that the Pump will provide.
NuTek, Inc. is an emerging growth company in the oil industry.
NuTek, Inc. operates the proprietary 'Bailer Pump(R),' which
generates a high level or profitability from wells no longer
utilized by other companies.
"The addition of the High Volume Vacuum Pump will expand our oil
production capability. This pump, along with the 'Bailer Pump(R)',
will significantly increase our ability to generate oil from low
producing wells," said Rodger Garrity, President, NuTek, Inc.
"We are eager to continue our expansion in the oil industry. The
continued development of technology for the oil industry makes it
an exciting time to be in the oil business. We will extend our
efforts daily to be a leader in the use of new technology in the
oil field."
The company expects drilling to begin in the Big Foot Field in
south Texas next week.
SOURCE NuTek, Inc.
CO: NuTek, Inc.
ST: California
IN: OIL
SU: TNM
02/20/97 14:39 EST prnewswire.com
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