TPG.L Regulatory News (TPG)

29 Nov 2005 07:01

Corac Group Plc29 November 2005 For Immediate Release 29 November 2005 CORAC GROUP PLC DOWNHOLE GAS COMPRESSION: FINAL DEVELOPMENT PHASE Corac Group plc ('Corac'), the intellectual property and licensing company, ispleased to announce the achievement of a significant milestone in its JointIndustry Programme ('JIP') for the development of its unique, downhole gascompression technology. Following normal JIP procedures, a detailed design review with the major oil andgas operators who fund the JIP has now successfully concluded. Corac will nowembark on the final stages of the development programme which will run through2006 into 2007. Budgets are now in place to manufacture and build six downhole gas compressormodules. During 2006, these modules will undergo a comprehensive test programmein a flow loop under simulated downhole conditions. This will lead to a fieldtrial of a commercial prototype in a producing gas well during 2007. This announcement follows the considerable progress made during 2005 in detaileddesign and engineering including component and major sub-system testing whichhas significantly advanced the technology on the downhole gas compressor andresolved many operational issues likely to be encountered in a producing gaswell. Commenting on these JIP developments, Professor Gerry Musgrave, Chairman, said: "The agreement of our major industry sponsors to proceed to the finaldevelopment Phase of the JIP marks a significant milestone in the downhole gascompressor programme. Phase 3 commencement reflects their continuing confidencein Corac's ability to deliver this leading edge technology. With the continued support of the oil and gas industry, who have now committedover £4m to the project, we remain on track to commence commercial applicationof this strategically important technology in the international gas sector inthe near future." For further information: Corac Group plc 01895 813463Prof. Gerry Musgrave, Executive Chairman Buchanan Communications 020 7466 5000Richard Darby, Suzanne Brocks, Ben Willey NOTES TO EDITORS Corac is an intellectual property, engineering and licensing group which holdsmany patents. It focuses on high speed electrical direct drive turbo machinerybased 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 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