Corac Group plc signs Feasibility Study agreement with OMV Austria Exploration & Production GmbH
Corac is pleased to announce the signing of a Feasibility Study agreement with OMV Austria Exploration & Production GmbH ("OMV") for the application of Corac's Downhole Gas Compressor ("DGC") in one of OMV's selected wells, where the well is not near its "end of life" but requires pressure boosting to assist with gas recovery from the field. OMV Austria is part of the OMV Group which is the leading oil and gas corporation of Central Europe.
The Feasibility Study is a preliminary design study for the DGC and will cover field trial well analysis, well completion, installation and site arrangements as well as mechanical and electrical arrangements for the DGC system. The study will be funded by OMV and is expected to be completed within six months. Subject to success, the study is expected to be the first of three potential phases with Phase 2 comprising a detailed design, build and test and Phase 3 comprising field deployment and monitoring.
The longer term objective is to provide OMV with the opportunity to gain maximum value for its global portfolio of gas assets through the application of Corac's DGC to accelerate the gas flow through artificial lift, thereby increasing production and extending the life of the well.
Phil Cartmell, Executive Chairman and CEO commented,
"This is another major step forward for us and is in line with our stated strategy to expand the breadth of partnership agreements to support the ongoing development of Corac's core technology. This study involves the application of the DGC technology in a significantly different well environment from that of our current projects, which importantly deploys the DGC earlier in a well's life cycle. Also, it is clear that the Company's strengthened balance sheet resulting from the recent fund-raising in December, together with the improved infrastructure to deliver this type of project, were factors that helped us to secure this study."