Oil and Gas Instruments Inc. Signs US $1.5 M Deal
OCM to provide turnkey manufacturing and supply chain services.
Oil & Gas Instruments, Inc. (OGI), a technology company based in London, Ontario, announced today it has signed a contract with a major US customer to provide 500 units of its patented VS.1 controller. The deal is worth over US $1.5 million to the company.
The customer, a major independent in the U.S. oil & gas industry, will install the units on gas wells in Colorado. The name of the firm was not released.
OGI’s president, Stuart Bevan, commented on the sale. “This deal is a remarkable vote of confidence in our technology and our products. I am optimistic this sale will open the door to other large deals from customers seeking to solve what has been an intractable and costly problem in oil & gas operations.”
OGI’s VS×1 technology is installed at oil & gas wells to continuously monitor and optimize production. By ensuring the pump remains properly filled, it combines the best in achieving optimal production with the best in extending pump lifetime.
OCM Manufacturing in Ottawa will manufacture the units for OGI. OGI has out-sourced its manufacturing operations to OCM for the past two years.
Dr. Tim Lownie, OGI’s Chief Technology Officer, added that outsourcing the company’s manufacturing was a key business decision. “We recognized early that the business’s key asset was our intellectual property and not in manufacturing our product. OCM has been a strong manufacturing partner, taking care of all procurement, assembly, test, and shipping, even covering warranty and repair.
About Oil and Gas Instruments Inc.
OGI was founded in 1995 and produces innovative pump control solutions to the oil & gas industry. OGI products are simple, cost-effective, and proven technology. Their most product introduces automated variable-speed control to hydraulically driven wells.
About OCM Manufacturing
Since 1998, OCM Manufacturing has provided high quality contract electronics manufacturing and supply chain services tailored for small- to mid-size companies. OCM is located in Ottawa, Ontario, close to major centers such as Toronto, Montreal and the northeastern United States. The company is a partner in the Sparton Alliance, an eight member, $US 300 million alliance of complementary registered electronics manufacturing service providers. OCM is ISO 9001:2000 registered.