Pioneer Energy Partners with Diversified Energy, Selected by the Department of Energy for a $5 Million Grant to Eliminate Emissions at Marginal Conventional Wells

LAKEWOOD, Colo.--(BUSINESS WIRE)-- Pioneer Energy announced today that in partnership with Diversified Energy (LSE:DEC)(NYSE:DEC), it has been selected by the U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) for a $5 million award to adapt Pioneer’s Emission Control Treater™ (ECT) technology to eliminate flaring and emissions at marginal conventional wells (MCWs). This technology will be demonstrated by Diversified Energy Company at their field locations in East Texas.

The Emission Control Treater (ECT) is a breakthrough well pad production technology that performs better separation than existing phase separators. As a result, there is no flash gas left in the crude and there is a lot less heavy NGLs left in the gas, increasing crude yield by 5-10%. The ECT is a closed system that completely processes the crude, resulting in zero routine flaring with no need for atmospheric storage tanks, achieving a near zero emissions production facility. This new technology utilizes state-of-the-art, cloud-connected automation, giving operators the ability to not only monitor their production but also to control it remotely from a centralized dashboard, saving manpower, field trips, and maintenance costs. Additionally, the ECT is modular, which enables easier right sizing of equipment throughout the life of the well pad. This results in better CAPEX utilization and reduced lifetime total cost of ownership.

This award will provide funds to scale down the ECT to process production from marginal wells. These mini-ECT units will be designed as inexpensive, drop-in replacements for surface infrastructure at marginal well production sites. The technology will be demonstrated for 12 months on several sites operated by Diversified Energy in the Cotton Valley Basin in East Texas.

“We are thrilled to receive the support of the Department of Energy to help us commercialize the ECT for marginal wells. We believe that the ECT can help to extend the economic lifetime of those wells, while simultaneously eliminating nearly all methane emissions and wasteful flaring,” said Pioneer Energy’s CEO Eyal Aronoff. “We look forward to working closely with the DOE as well as our partner, Diversified Energy, as we adapt the ECT for this application, furthering U.S. goals of leveraging new technology to improve domestic oil production while protecting the environment.”

“We are proud to partner with innovative emissions technology providers like Pioneer Energy that allow us to pave the way for emissions improvement utilizing transformative industry solutions,” said Paul Espenan, Senior Vice President of EHS&R at Diversified Energy. “By leveraging the DOE grant, coupled with our collaboration with Pioneer Energy, we have an application that provides a cost-effective implementation. The technology will allow us to demonstrate how efficient, high-performance solutions provide the opportunity for Diversified to continue to be a leader with our stewardship approach to managing mature producing assets.”

DOE Announcement:

U.S. DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY ANNOUNCE $850 MILLION TO REDUCE METHANE POLLUTION FROM THE OIL AND GAS SECTOR
https://content.govdelivery.com/accounts/USDOEOFE/bulletins/3c8852e

About Pioneer Energy

Pioneer Energy, Inc. is a provider of technologies that help the oil and gas industry to increase production revenues and decrease operational expenses, while also eliminating flaring and oilfield emissions. The company’s product lines include the Emission Control Treater™ (ECT), a zero-emission oil production system which increases crude production volumes; Pegasus field gas conditioning systems which save on fuel costs, decrease field operations costs, reduce emissions and improve uptime for well pad production and hydraulic fracturing operations; and flare gas capture and processing equipment. Pioneer’s systems help oil producers to be good stewards of the environment while converting emissions to resources which help to support domestic energy security. To learn more, visit http://pioneerenergy.com/.

About Diversified Energy Company PLC

Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique and differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value. To learn more, visit https://www.div.energy/.

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Nicole Lane, Corporate Relations Officer: nlane@pioneerenergy.com

Joseph E. Palaia, IV, Vice President of Business Development: jpalaia@pioneerenergy.com

Source: Pioneer Energy, Inc.