9th Jun 2008 07:00
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For Immediate Release |
9 June 2008 |
CORAC GROUP PLC ('Corac')
Downhole Gas Compressor Order Win
Corac Group plc (AIM: CRA), the intellectual property, engineering and licensing company specialising in compressor technology, is pleased to announce the first order for its downhole gas compressor (DGC). Eni SpA, a Joint Industry Programme (JIP) partner, has placed an order with Corac for the first field trial unit, which will be deployed in Eni's assets in Italy.
Corac has been working with the JIP partners, Eni SpA, ConocoPhillips (UK) and Repsol YPF for the last three years in developing this patented technology. Since January 2007, the unit has been subjected to extensive trials in simulated downhole conditions in a flow loop test rig at Spadeadam in Cumbria. As reported in October 2007, all three JIP partners have been satisfied with progress for the development and operation of the DGC and tests have been ongoing. Eni's assets in Italy will be the inaugural location for the first DGC unit and Conoco Phillips (UK) and Repsol are working with Corac in planning their own field trials.
There is considerable interest from other gas majors in the DGC as it becomes better known in the industry. By placing a compressor near the mouth of a well, as opposed to on a rig at the surface, extra artificial lift can be obtained from a flowing well to give enhanced recovery over a shorter period of time or be deployed towards the end of the life of a well giving up to five years of additional positive production.
Gerry Musgrave, Executive Chairman said:
"I am delighted to report our first order for our DGC unit. This is important technology enabling stranded gas reserves to be brought into supply at a time of escalating energy costs and depleting gas reserves. The development of the DGC, which deploys a unique method of lifting gas from wells, comes at a crucial time for the global energy market."
For further information please contact:
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Professor Gerry Musgrave |
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Corac Group plc |
Tel: 01895 813463 |
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Ivonne Cantu/Camilla Hume - Corporate Finance |
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Christian Hobart - Sales |
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Cenkos Securities plc |
Tel: 020 7397 8900 |
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Richard Darby/Suzanne Brocks/Ben Romney |
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Buchanan Communications Ltd |
Tel: 020 7466 5000 |
NOTES TO EDITORS
Corac is an intellectual property, engineering and licensing group which holds many patents. It focuses on high speed electrical direct drive turbo machinery based on its unique expertise in gas bearings. Corac has created an innovative 'no oil' turbo compressor together with a unique gas seal, and is part of a joint industry programme for the downhole gas extraction industry.
Further information on Corac is available on the internet at www.corac.co.uk
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