StatoilHydro Awards WellDynamics Norge NOK1 Billion Contract

WellDynamics, the leading provider of intelligent completion technology to the upstream oil industry, announced that its Norwegian office, WellDynamics Norge a.s., has been awarded two frame agreements for work in the Norwegian North Sea by StatoilHydro, one of the world's largest offshore oil companies.

WellDynamics will install electronic Venturi flowmeters, electronic pressure/temperature gauges in wells with WellDynamics' SmartWell completions, and additional electronic pressure/temperature gauges in wells where WellDynamics' flowmeters are installed. This frame agreement applies to all previous Hydro assets in the North Sea. WellDynamics was one of three vendors selected to provide services for the entire contract, estimated to be worth 1 billion NOK, including options, over an eight-year period beginning in Q1 2008.

"The three new frame agreements for downhole monitoring help in securing access to a broad range of measurement technologies for use in advanced wells to maintain productivity levels on the Norwegian Continental Shelf in years to come," said Vidar Skjaeveland, Head of Procurement Drilling and Well Services, StatoilHydro. "We believe that they provide an important means for increased recovery of both new and existing wells."

Under terms of a separate frame agreement, WellDynamics will provide and implement SmartWell technology in four wells in StatoilHydro's Gjoa field. The contract is estimated to be worth as much as 45 million NOK over six years, beginning in 2009.

StatoilHydro, established in October 2007 as a merger between Norwegian companies Statoil and Norsk Hydro, has a longstanding relationship with WellDynamics.

"We are eager to join with StatoilHydro in the expansion of technologies in the North Sea," said Derek Mathieson, president and CEO, WellDynamics. "Innovation is critical to improving ultimate recovery across the industry, and we look forward to helping StatoilHydro achieve its goals in these exciting new projects."

WellDynamics' SmartWell intelligent completion technology includes solutions for flow control, zonal isolation, permanent monitoring and downhole control, as well as digital infrastructure and fiber optic systems.