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3/4 Of A Million Dollar Order Emphasizes APGI's Real-World Superiority

|Includes:American Power Group Corp. (APGI)

Note: This instablog entry is not the main, detailed analysis to which I refer in the Seeking Alpha article. To view that entry (well worth the read), scroll down to the one below titled "Dual Duels in Dual Fuels: Why APGI Emerges The Natural (gas) Champion"

Today, as American Power Group CEO Lyle Jensen speaks at the World LNG Fuels Conference (yet another example of APG being invited to the table, where the likes of Eco-Dual, Landi USA, Hythane, GTI, and others are not), we also see a highly positive follow-on order from Collicutt Energy. While I am now confident that APG is and will remain the undisputed leader in the vehicular realm, my most recent due diligence on CAT's Dynamic Gas Blend product, and into both the product and the company from Australia's Hythane, convinces me that APG is going to have the lion's share of the stationary market as well. I believe the next two quarters will see the beginning of a cascade of sales orders, and initiation of coverage by at least one investment house. Bear in mind, when you see follow-on orders, these are orders that are coming in after field testing head to head with competitors and after the given customer has already installed and been using APG's system. Translation: It works, it's reliable, and when they do the math of how much money it is saving them, putting the system on more trucks / more generators / more mining rig engines is a complete no-brainer.

A release excerpt is here, with anything underlined or bolded being my emphasis:

LYNNFIELD, MA - January 23, 2014 - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG") has received $750,000 in follow-on purchase orders since October 1st from Collicutt Energy Services, its stationary authorized dealer and certified installer in Alberta and Western Canada.The orders are for the upgrade and conversion of additional diesel generators on drilling rigs using APG's Turbocharged Natural GasT Dual Fuel System. While the end customers were not disclosed for proprietary reasons, these customers are ranked among the top oil and gas exploration and drilling companies in Canada and North America.

Steven Collicutt, CEO of Collicutt Energy Services stated, "Many of our customers drill under some of the harshest operating conditions in North America. The proven reliability, performance and economic returns of the APG dual fuel solution under these circumstances has led to increasing demand from new and existing customers. Mr. Collicutt added, "APG provides our customers with a significant competitive advantage in a very bottom-line driven industry. Several of our oil and gas drilling and service company clients estimate a potential annual net fuel savings of over $1.0 million dollars per drilling rig using APG's dual fuel solution."

Lyle Jensen, CEO of American Power Group stated, "We are pleased to see continued strong interest in the Canadian market from some of the leaders in the oil and gas drilling services market. We are already over 250% of last year's Canadian revenue and anticipate our penetration into the Canadian market to accelerate through our relationship with Collicutt Energy Services." Mr. Jensen added, "In addition to the fact our Canadian customers continue to see over 50% diesel displacement ratios, APG's dual fuel system was the first and remains the only solution to obtain CSA Inspection and Acceptance. Similar to Underwriters Lab ("UL") approval in the United States, the CSA Inspection and Acceptance mark shows that a product has met CSA's recognized standards for safety and performance."

Disclosure: I am long APGI, .

Stocks: APGI