Expro International Group PLC
15 November 2007
15 November 2007
EXPRO INTERNATIONAL GROUP PLC
("Expro")
Expro signs contract for the AX-S (TM) Lightweight Intervention System
Expro International Group PLC today announces the signing of a contract with BP
Exploration Operating Company Ltd, a wholly-owned subsidiary of BP plc,
concerning the development and commercialisation of Expro's AX-S lightweight
subsea wireline intervention system. This follows from a Letter of Intent that
was signed on 27 June 2007.
This strategic, corporate level contract provides for the development and
commercialisation of this unique technology for subsea operational deployment on
a global scale.
Expro will build and deploy a fully engineered AX-S system; BP will provide partial
project funding and technical input, including field trials of the AX-S system on
subsea wells, subject to the system passing agreed testing milestones. The
agreement anticipates that field trials will take place during the first half of
2009. Both parties have also determined the basis of a long term contractual
agreement to further the commercialisation of this unique technology. Once proven,
the AX-S system will be available to the whole industry.
The parties also anticipate further collaboration covering future technology
developments aligned to establishing maximum impact of the AX-S intervention technique.
The AX-S system is designed to service the rapidly growing market for lightweight
well intervention services that diagnose production problems and improve production
and reserves recoveries from subsea wells. The AX-S system has been designed to
extend the limits of lightweight intervention to water depths of up to 10,000
feet, which would represent a significant technological breakthrough over what is
possible today.
Commenting on behalf of Expro, Graeme Coutts, CEO said "Introducing breakthrough
technologies in the upstream sector is a very difficult task. The road to
commercialisation can be lengthy and extremely expensive. I am therefore delighted
that we have been able to construct a contractual relationship which reflects full
strategic alignment between technology provider and end user. We have chosen to
partner with BP in particular because they share our vision and ambition to be at
the forefront of deepwater development, creating technical solutions, like AX-S,
that will go on to become accepted commercially as industry wide solutions. In
the world where oil and gas is becoming increasingly difficult to find, our
customers are becoming very focused on maximising recovery from existing discoveries.
In deep water, rig based economics limit the deployment of traditional production
enhancement techniques resulting in lower recovery factors than might otherwise
be possible. Both BP and Expro recognise the potential of AX-S to exploit this
key market opportunity and deliver a meaningful new technique to the upstream
sector in the growing market of subsea field development."
-Ends-
For further information please contact:
Expro International Group PLC 0118 959 1341
Graeme Coutts, Chief Executive Officer
Michael Speakman, Finance Director
Weber Shandwick Financial
Nick Oborne / Rachel Martin / Stephanie Badjonat 020 7067 0700
Note to Editors
Expro's business is well flow management. Expro is a leading provider of products
and services that measure, improve, control and process flow from high-value oil
and gas wells. Key niche businesses must be able to command and sustain market
share leadership through a combination of technological pre-eminence and/or
operational economies of scale. They will have a high knowledge and service
content and will be able to anticipate, meet and exceed customers expectations.
With its head office in the UK, Expro employs more than 4,000 highly-trained
staff in 50 countries. For more information, please visit the Expro website
www.exprogroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.