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DVS 6000 - A Blockbuster Product?

In the world of oil field chemicals, new products have to be price and performance competitive. Diversified Industries Ltd. (TSX Venture:DVS) has developed such a product. While Diversified has rapidly growing sales in production and process chemicals, supplying customer specific blended product, proprietary chemicals and bulk commodity chemicals, their blockbuster high-margin product is DVS 6000.

Diversified's scavenger technology, DVS 6000, has been developed for several applications in multiple industries for the removal of hydrogen sulphide (H2S) from gas, oil, air, or water.  They chose to focus their efforts on marketing DVS 6000 to the Western Canadian oil and gas industry as a primary market but have also generated ongoing interest from the United States and overseas markets.  DVS 6000 is non- corrosive, water-based, non-flammable, has a mild odor, has an extremely low freeze point (below -45°C), and is competitive in price.  It contains no formaldehyde or any of the toxic additives commonly found in competitive products. It is also non-flammable and non-corrosive, enabling it to be non-regulated under the Transportation of Dangerous Goods Act of Canada and making it safe to transport by air, land and sea. In addition, the by-product is easy to dispose of due to its small micron size; as well, when compared to caustic soda and ammonia, DVS 6000 has the potential to produce as little as 10 times less by-product.

DVS 6000 works longer than caustic soda and ammonia, resulting in less product to inventory, less shipping and handling costs, less by-product, and less disposal costs - all of which save the distributors and end users money and make DVS 6000 a smart product choice.  It is a safe and effective alternative to other hazardous scavenger technologies.  The product can be used in truck scrubbers, stationary scrubbers, vent gas scrubbers, under-balanced drilling, fuel gas scrubbing, down-hole scrubbing, well bleed downs, tank and vessel decontamination, vacuum truck scrubbing, plant shutdowns, flushing of coil tubing, flushing of pipe and pipelines to neutralize H2S, and in the majority H2S safety related situations.  Ongoing lab testing and field trials are a significant part of day-to-day operations in order to further market penetration.  In addition to this, with the assistance of the research and development team of CFR Chemicals Inc., Diversified Industries Ltd. will continue to invest in new product development for unique oil and gas applications.

Diversified currently has several non-exclusive distribution partners for it's DVS 6000 H2S scavenger technology. They continue to work with various distribution partners in order to increase sales and marketing efforts on DVS 6000. In Canada, Diversified has built strategic relationships with Dial Oilfield, Strike Oilfield Services and several oil and gas producer companies. Diversified continues to work with several other companies both in Canada, the United States and abroad in efforts to expand DVS 6000 sales and distribution.

I am an investor relations consultant to Diversified Industries (DVS.V)