TPG.L Regulatory News (TPG)

15 Jun 2005 07:00

Corac Group Plc15 June 2005 15 June 2005 Corac Group plc Downhole Gas Compression: Phase 2 of Joint Industry Programme signed Corac Group plc ('Corac'), the intellectual property and licensing companyspecialising in compressor technology, is pleased to announce the signing ofPhase 2 of the Joint Industry Programme ('JIP') for the development of itsunique, patented downhole gas compression technology. Phase 2 involves detailedengineering design and component testing, which is expected to lead to themanufacture and testing of a prototype downhole in a producing gas well withintwo years. This announcement follows the successful completion of Phase 1 of the JIP duringwhich considerable engineering and experimental verification work was carriedout. This has significantly progressed Corac's understanding of the operatingenvironment likely to be encountered downhole and clearly identified solutionsfor the compressor system's operability under a wide range of well conditions. In particular, progress has been made on a number of important fronts includingconfirmation of the functionality of Corac's air bearings on natural gas and theoperability of the downhole gas compressor system under typical flow conditions.Significant breakthroughs have also been achieved in the area of powertransmission and downhole electronics, thereby maximising the compressorperformance downhole. Completion of Phase 1 of the JIP has confirmed the operability and functionalityof key enabling technologies under anticipated downhole conditions to thesatisfaction of the five major operators who participated in this phase of theJIP, all of which own and operate gas assets worldwide which could benefit fromthis potentially game changing technology. Commenting on this significant stage in the JIP, Professor Gerry Musgrave,Chairman, said: "The signing up to Phase 2 of the JIP is a major step forward in the ongoingdevelopment of this innovative technology. The continued, invaluable support toCorac from the oil and gas industry who have now committed over £2.5m of fundingsince project commencement, is fundamental to the success of Downhole GasCompression and is a clear indication of the level of confidence they have inthis strategically important and potentially game changing technology. We are excited by the prospects from the next phase of the JIP." For further information, please contact: Corac Group 01895 813463Professor Gerry Musgrave, Executive ChairmanRoberta Miles, Finance Director Buchanan Communications 020 7466 5000Richard Darby, Suzanne Brocks, Ben Willey Notes to Editors Corac is an intellectual property, engineering and licensing group, focussing onhigh speed electrical direct drive turbo machinery based on its unique expertisein gas bearings for which it holds several patents. Corac has created a range of'no oil' turbo compressors together with a unique gas seal, and is part of ajoint industry programme for the downhole gas extraction industry. Further information on Corac is available on the internet at www.corac.co.uk This information is provided by RNS The company news service from the London Stock Exchange