Lexington Energy Services Inc revealed the prototype of its next-generation nitrogen generating system in Calgary last week, and its hopes of capturing a significant portion of a rapidly expanding market.

$quot;Nitrogen generation isn't the only thing we do at Lexington Energy
Services, but it may be the one with the most potential to reshape part of the oil and gas industry,$quot; said Lexington Energy COO Brent Nimeck.

Mr.Nimeck designed the new nitrogen generation system, which captures the gas from the air on site before concentrating and purifying it so it is suitable for use in a number of applications.

Industry experts believe the design could be very successful, $quot;I liked what I saw,$quot; said Bob Kooyman, a frontier operations engineer with Talisman Energy. Mr. Kooyman said there $quot;definitely was a market$quot; for such a high purity system, particularly when adapted for the many oil and gas operations that do not have access to the infrastructure required for traditional on site or pipeline nitrogen systems.

Mr Nimeck also highlighted the problems with conventional liquid nitrogen use saying logistics, cost, and safety made it prohibitive for some potential customers. However, he says his new project will, $quot;dramatically reduce each and every one of those problems by producing high purity nitrogen right on location without needing to liquefy or transport it.$quot;

Nitrogen is often used to displace oxygen in oil or gas wells, mostly to eliminate the risk of a fire or surface explosion, and to prevent damaging corrosion of down hole equipment when working with sour oil or gas.

In this expanding market Lexington Energy's new nitrogen generation system is different as it captures nitrogen the air, rids it of impurities, and concentrates it to 98-99.5 per cent purity, higher than previous capabilities.

$quot;Unlike some other designs that top out at 95 per cent purity,$quot; says
Lexington Energy's Mr. Nimeck, $quot;our technology goes the extra mile and processes twice the volume of air necessary to reach the gold standard of at least 98 per cent required for many applications.$quot;

Possible applications of Lexington Energy's system could be adapted to include offshore oil platforms, oil and gas well completions, pipeline testing, under-balanced drilling, oil tanker or rail car purging, refinery turn around or maintenance, and snuffing out underground coal mine fires.