TPG.L Regulatory News (TPG)

18 Oct 2007 07:01

Corac Group Plc18 October 2007 For Immediate Release 18 October 2007 CORAC GROUP PLC Downhole Gas Flow Loop Update Corac Group plc, the intellectual property, engineering and licensing companyspecialising in compressor technology, provides a progress update for thedevelopment and operation of its unique downhole gas compressor. Comprehensiveflow loop testing recently witnessed by the Company's JIP partners, ConocoPhillips (UK) Ltd, Eni SpA and Repsol YPF has produced positive results. Testing started in January 2007 with the commissioning of the rig in Spadeadam,Cumbria, to simulate as near downhole conditions as possible where gas iscirculated at various controlled rates, pressures and temperatures. Progressivetesting has provided useful results with design modifications being made in linewith a planned testing programme. Simulating typical downhole conditions of hightemperature and 30 bar pressure, the modules have been operated at 55kw and45,000 rpm. The JIP partners were able to witness the downhole compressor modulerunning at constant speeds as well as with repeated starting and stopping.Results from recent tests are representative of requirements for the Company'sfield trial units. Continued testing at Spadeadam for the remainder of 2007 will determine boundaryvalues for the machine in this environment. The procurement process is scheduledto start in the first quarter of 2008, in order to have machines available fordeployment in the field trials in the final quarter of 2008. Representatives from the JIP partners commented as follows: Luis Ortega, Consultant of Reservoir Technology. Repsol YPF "I have been impressed with the results from the test rig and am pleased withthe progress made. I look forward to the next stage of deployment within thefield." Dr Mike Swidzinski, Senior Consultant Engineer. ConocoPhilips (UK) "Progression of the Corac DGC prototype through to flow loop testing is animportant and significant milestone for the project. The information generatedfrom these flow loop tests will serve to demonstrate and frame the capabilitiesof the DGC, and thereby reduce the risks associated with the anticipated futuredeployment of this novel technology in gas producing fields." Matteo Tommaso Di Tullio, Technical Leader Production Optimisation Technology R&D for Eni SpA E&P Division. "These tests have been useful in demonstrating performance, capability andprogress made this year and will give renewed impetus to the planned fieldtrials." Gerry Musgrave, Executive Chairman, added: "This is a landmark step in achieving a fully tested downhole compressor forartificial gas lift from wells. When the units are deployed in a gas well theycould give an extra 40% of gas therefore providing important economic andstrategic value for the global energy market." For further information please contact: Professor Gerry MusgraveExecutive Chairman 01895 813463Richard Darby, Suzanne Brocks, Ben WilleyBuchanan Communications 020 7466 5000 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 aninnovative 'no oil' turbo compressor together with a unique gas seal, and ispart 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 This information is provided by RNS The company news service from the London Stock Exchange