Caledus to Develop New Size for its Slimwell Tool

Caledus, the well construction technology oil and gas service sector business, is predicting a record year for activity with a new size of its evolutionary well construction technology SlimWELL®, a major increase in contracts secured and additional staff.

The company has agreed a US $1,000,000 deal with a major oil and gas operator to fund the development of an 11-3/4"(11.7/8") x 13 3/8" version of its SlimWELL technology, which slims down the well profile while maintaining well integrity and intervention ability. SlimWELL® has the potential to reduce well construction costs by up to 50 per cent, enhances safety and reduces environmental impact. v The 11-3/4"(11.7/8") x 13.3/8" version will be the largest product in the SlimWELL range and will be available for field trials from summer 2008. It will mark the first technology in Caledus's SlimWELL FullWELL capability, enabling the development of slender/lean wells. The new version of SlimWELL will complement the existing 5-1/2"(5.3/4") x 7" and 4" x 5 1/2'" models which form the commercially available system SlimWELL SideTRACK - a series of patented close clearance flush jointed liners delivering a larger pipe size at the zone of interest from a cased hole sidetrack.

The development of the new size of SlimWELL is part of a significant expansion by Caledus. Its Asia Pacific headquarters, based in Perth, Australia, and its European headquarters in Aberdeen are reporting record business levels.

Through its Asia Pacific operation, Caledus has won its first major contract in China, a US$3 million deal for its drilling tool the RotoTEC Friction Reducer, and has secured contracts in Malaysia, Brunei, New Zealand and Australia, totalling more than US$5,000,000.

The company, which acquired Aberdeen-based Brunel Oilfield Services UK Limited (BOS) in November 2006, has seen turnover more than double, with increased activity in the North Sea and further contract wins in Canada, Asia and Alaska for the Brunel Ezee-GliderÒ 2000 – polymer thermoplastic casing and liner centralizers. Caledus also recently won a significant contract with an Aberdeen-based company for the manufacture of marine equipment.

In line with its business expansion, Caledus, which employs almost 40, has significantly expanded its staff with the appointment of a number of key personnel, and expects to add more in the next six months.

John Hanton joins Caledus as General Manager following a successful career with Halliburton and Weatherford, while Simon Turner, Mike Fraser and Gregor Watson have been appointed as Sales Engineers. Isobel Halkett has been appointed head of the recently formed Support Services Group, which provide sales, and logistics support for its growing UK and international operations. Keith Bradford has been appointed Support Services Engineer and Lauren Campbell as Support Services Co-ordinator. Tom Paynter joins as a Service Engineer while Darren Priest has been appointed Workshop and Facilities Supervisor and Lynsey Anderson as Support Services Assistant.

Paul Howlett, CEO and co-founder of Caledus Limited, said: "Our third year of trading has seen Caledus mature into an established player in the service sector. We anticipate generating revenue of more than US$11,000,000 this year, and our business is continuing to expand on all fronts.

"The development of the 11-3/4"(11.7/8") x 13.3/8" SlimWELL, with operator support, will have a significant impact on the international slender well/lean well market and will be the first product in the SlimWELL FullWELL range for development, appraisal and exploration wells. SlimWELL FullWELL can cut well construction costs by as much as 50 percent by consuming less casing, cement and mud and producing less drill cuttings. It will also enable the deployment of smaller rigs, to drill the same performance wells, which also reduces overall costs, especially with rig rates so high.

"The success of SlimWELL is one aspect of our growth. Our commitment to the North Sea remains strong, but our technologies are being well received internationally. We have been delighted with the activity generated following the integration of BOS in Aberdeen, and the business secured from our Asia Pacific headquarters.

"It is truly an exciting time to join our company. We are developing an excellent team, committed to capitalising on our success and are actively recruiting the right people to take Caledus to the next level."