Corac Group - new agreement is a big vote of confidence in the technology
Having announced somewhat disappointing interim results earlier in August (Revenues £0.05m, net loss £2.41m with no major revenues received from JIP partners), the AIM quoted developer of energy efficient compressor technology has announced a new agreement with an independent exploration & production company with gas interests in the United States – Texas based?
The project is to develop, build, test and field trial the Group’s Downhole Gas Compressor (“DGC”) in a depleting well in North America with the aim of accelerating gas flow through artificial lift, thereby increasing production and extending the life of the well. The development phase is expected to take approximately twelve months followed by a six month field trial. The agreement has a maximum value of $1.5m, based on achieving milestones over a period of eighteen months, with an upfront payment of $750,000 which will help cashflow. The project will allow Corac to build on the development work already…