Caledus Announces Intl Growth Opportunity with New Houston Office

Caledus, the Aberdeen headquartered well construction technology oil and gas service sector business, announces a major milestone in its continued international expansion with the opening of an office in Houston, USA.

The company, which is enjoying significant global growth from its existing bases in Aberdeen, Perth Australia and Calgary, covering the Americas, Asia Pacific and the North Sea, has opened its Houston office at 2500 City West Boulevard. Heading Caledus USA Inc will be Chris Stewart, Vice President Sales Americas.

The opening of the Houston office follows enhanced success for Caledus, with the announcement that it has agreed a US$1,000,000 deal with ENI to fund the development of an 11 ¾"(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.

The 11 3/4-in. (11 7/8-in.) x 13 3/8-in. 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-in. (5.3/4-in.) x 7-in. and 4-in. x 5 1/2-in. 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. Deployment of SlimWELL SideTRACK can lead to the increased recovery of recoverable reserves.

Caledus has also agreed a US$850,000 deal with oil major ExxonMobil to fund the development and testing of a Heavy Duty "Arctic-Service" version of its SwivelMASTER technology, which is a patented tool design to enhance the deployment of sand control screens into ERD wells. The use of the technology increases operational efficiency whilst at the same time enhancing safety at the rig site which is of paramount importance in remote and harsh environments.

Once developed, extensively tested and qualified, and with ExxonMobil final approval, the technology will be used in some of the World's most complex drilling operations on Sakhalin Island, the 600 mile long strip of mountains and forests off Russia's Far East, in a significant ERD well drilling campaign.

Since its launch last year, demand for SwivelMASTER has surpassed all expectations with contracts secured in Europe, Asia, North America and Africa.

Both the new version of SlimWELL and SwivelMASTER are expected to lead to substantial contracts of use.

As part of its TD SOLUTIONS business stream, Caledus is to launch a range of disposable wellbore clean up tools, and the first of these is currently being trialled in Asia. The tools will provide the opportunity to eliminate the need for costly dedicated wellbore clean up trips, with the potential to save operators considerable money.

In line with its business expansion, and rapid internationalisation Caledus, which already employs more than 40 staff from just four in 2004, has significantly expanded its Aberdeen based team with the appointment of a number of key personnel and expects to grow its staffing levels by a further 50% globally in the next 12 months. The disciplines to be enlarged are in design engineering, operations and manufacturing in the main.

Paul Howlett, CEO and co-founder of Caledus, said: "We are delighted to have established an office in Houston. We see the Gulf of Mexico as a key market for our technologies going forward and Houston is the perfect platform from which to launch this strategy.

"Last year's OTC was hugely successful for us in terms of raising awareness of our technologies. We generated such a significant volume of business from it that it gave us the confidence to establish a presence in Houston and we are certain that more success will follow.

"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."