25 Aug 2010 07:00
|
| 25 August 2010 |
Corac Group plc
("Corac" or the "Company")
New Development Agreement
Corac, an innovator in the development of energy efficient compressor technology, is pleased to announce the signing of a new agreement with an independent exploration & production company with gas interests in the United States. The agreement has a maximum value of $1.5 million, based on achieving milestones over a period of eighteen months, with an upfront payment of $750,000.
The project is to develop, build, test and field trial Corac's Downhole Gas Compressor ("DGC") in a depleting well in North America with the aim of accelerating gas flow through artificial lift, thereby increasing production and extending the life of the well. The development phase is expected to take approximately twelve months followed by a six month field trial. The project requires deployment of the DGC in a well via coiled tubing, which is less expensive and easier than alternative methods.
The project will allow Corac to build on the development work already underway with Eni SpA in Italy, as well as provide another means to test the DGC technology in an important geographical market.
Commenting on the development agreement, Phil Cartmell, Chairman & Chief Executive Officer, said:
"I am pleased that we have been able to secure this project, the second field trial for our DGC technology. We are working with an important partner in North America where the potential for deployment of the DGC using coil tubing is significant. Tremendous effort has gone into securing this project and finding the right partner has been critical."
We continue to work closely with a potential Middle East partner where negotiations are nearing the final stage to secure a third field trial development project for an alternative application of Corac's core compressor technology."
For further information please contact:
| Phil Cartmell - Chairman & Chief Executive Officer Mark Crawford - Commercial & Finance Director |
|
| Corac Group plc | Tel: 01895 813463 |
|
Jeremy Warner-Allen - Sales |
|
| Liz Bowman/Ivonne Cantú - Nomad |
|
| Cenkos | Tel: 020 7397 8980 |
|
Richard Darby/Ben Romney |
|
| Buchanan Communications Ltd | Tel: 020 7466 5000 |