Welltec Files Suit Related to Well Tractor System Technology

Welltec ApS and Welltec Inc. has file suit against Precision Drilling Corporation and Computalog USA Inc. on July 24, 2003 in the United States District Court for the Southern District of Texas, Houston Division, alleging at least $263 million in damages. The claim alleges that Computalog USA and Precision Drilling are liable to the Welltec entities for patent infringement, copyright infringement, unfair competition, passing off, false advertising, misappropriation, tortious interference with prospective business relations, and unjust enrichment. These causes of action are based, in part, on Computalog USA's and Precision Drilling's unauthorized use, and copying of Welltec ApS's patented and proprietary Well Tractor(R) Systems.

The Welltec entities' claims are filed as counterclaims in a lawsuit brought by Computalog USA Inc. against Welltec Inc. and Welltec ApS, claiming, in part, that two United States patents owned by Welltec ApS are invalid. Welltec ApS is also currently a Plaintiff in a Canadian lawsuit against Precision Drilling Corporation where Welltec ApS asserts damages in excess of $100 million.