Yes an engineer but lets call it a TECH Engineer. Compressed air technology is its main business, develops industrial air compressors and Gas seals and whats more it provides them for the OIL and GAS industry.
Very close to commercialisation now with its compressors and seals and todays deal ( see below ) should bring that very close.

Charges upfront payments, continuing royalties and development contracts so revenues are not lumpy.

It as a market cap circa off the top of my head 20 million(hope my calculator is now working) and as circa of 5 million cash on the books, very nice.

Some very big names as customers.

Heres todays announcement...........

Corac Group Plc
26 May 2004


For Immediate Release 26 May 2004


Corac Group plc ('Corac')

Joint Industry Programme for Downhole Gas Compression

Corac, the intellectual property and licensing company specialising in
compressor technology, is pleased to announce the signature today of a Joint
Industry Programme ('JIP') for the development of its unique, patented downhole
gas compression technology.

Following the recent successful completion of a Shell funded feasibility study
which evaluated both the technical and economic viability of the technology,
considerable industry interest has been generated, culminating in the addition
of a further four major international oil and gas operators to the project.

The participants of the JIP comprise ConocoPhillips, ENI, Husky Energy,
Repsol-YPF as well as Shell, all of whom have gas assets worldwide which they
believe could benefit from this game changing technology. As well as covering
the development costs for the next phase, the participants will also make
substantial resource available to ensure the final product specification meets
the requirements of the industry.

Corac's downhole gas compression concept involves the coupling together of a
number of axial compressor modules in a single compression train for
installation in the well bore in close proximity to a gas reservoir. In this
location, a modest uplift in pressure results in a very significant increase in
gas production compared with conventional methods using surface compression,
thereby accelerating gas production and cash flow from a producing asset.
Potential production rate enhancement of up to 40% has been demonstrated through
the application of downhole gas compression during a number of gas field case
studies carried out over recent months.

Placing the compressor downhole could also have the effect of being able to
lower the reservoir abandonment pressure which in turn would materially increase
the ultimate recovery from a gas field, thereby further enhancing the economic
benefit from the installation of this novel application of existing technology.

Phase 1 of the JIP is scheduled for completion by the end of 2004, with further
engineering and development work leading to the manufacture and testing of a
prototype downhole in a producing gas well within the following two years.

Commenting on the JIP, Professor Gerry Musgrave, Chairman, said:

'The support from such eminent oil and gas companies vindicates Corac's
development to date of the downhole gas compression project and gives the Group
another product line to bring to the market using its core technologies. It is
the start of a major business development opportunity which is expected to have
significant international ramifications throughout the upstream natural gas
industry.'ENDS.

Although loss making at the moment it shouldnt be very long before this one turns the corner.

Outlook

The Company has a loyal, talented workforce dedicated to the innovation and
exploitation of the technology. Successful trials have demonstrated the
commercial performance in Corac's industrial air compressor and its seals. The
Board is striving to deliver the right manufacturing and sales licences which
will yield the best returns in the long term.

We are confident that a number of deals, which have been subject to recent
intensive negotiation, will be successfully concluded in the near term.

Short to medium term investment, and anyone interested should DYOR and please remember you are responsible for the timing of your buying and selling actions.

cheers GF.

sure has,gf
I think this stock could easily be 2 or 3 in a year or two, provided DGC continues
to develop along the right lines.

Any tech that can extract up to 40% extra gas from suitable wells has to be worth a few hundred mill for starters, CRA is currently valued at around 40m, peanuts!

Looks like a full-blow chart break-out is underway, which should add a few more to the party.

Lets hope so NL.

Are we off on a PDX type run?

think CRA has much, much more potential than PDX, imo and with all respect to PDX, which I think is a damn fine stock with some very interesting tech.

Work out the economic benefit CRA could bring to gas operators, and you will see CRA looks very undervalued, albeit, to be fair, there is still some development work to do on DGC.

CRA also have several other irons in the fire in major markets, eg industrial air and refrigeration, both billion + markets.

nice one!

http://www.worldwidebb.com/news.php


09.08.2007 - The Self Enrichment Society

No-one can forget that memorable final scene in The Italian Job where the coach wobbles precariously over the edge of a ravine weighed down by millions of pounds worth of gold bars. For Michael Caine and the rest of Mr. Bridgers gang, a case of so near and yet so far.

However, this tantalising scenario pales into insignificance compared with that endured daily by senior operations managers at the Worlds largest oil and gas companies. Collectively they are sitting on hundreds of billions worth of gas reserves which they simply cannot access because of a simple lack of pressure.

Next time you pack up your inflatable sunbed at the end of a day at the beach, notice how there is a sudden whoosh of escaping air as soon as you unplug the stopper. Then, once the air pressure inside the bed approaches the same level outside, you are still left with a sizeable volume of air that has to be forced out by a tiresome procedure of pressing and rolling.

Ever since the birth of the natural gas industry, engineers have been grappling with a similar problem of how to extract the trillions of cubic feet of gas left behind once the pressure underground becomes insufficient to force the gas a mile or two up to the surface. The most common approach has been to install compressors at the well head to try and suck up the gas left behind but, even with a decent sized machine, this is about as effective as inhaling on a 50 foot cigarette. If anyone ever manages to crack this problem, it would be almost priceless in terms of the extra volume of gas extracted globally every year.

Well, whisper it very quietly, but a small engineering firm spun out of Brunel University is now on the cusp of this very breakthrough after years of painstaking research and development. Professor Gerry Musgraves CORAC GROUP first arrived on the Stockmarket in 2001 in a blaze of glory that saw the shareprice briefly kiss the 100p level putting a value of over 50 million on an enterprise that had zero revenue and profits.

Since those heady days the shares languished as investors grew bored with the inevitable wait for the protracted R & D programme to run its course. Musgraves small team had already redesigned the conventional air compressor so that it required fewer moving parts and subsequent maintenance but the real breakthrough came when he persuaded several oil and gas giants that it was possible to produce a compressor small enough but strong enough to travel the full length of a 7 inch diameter gas well and suck the invisible gold up through the well. This process would mean fields could be exploited with fewer wells and therefore capital expenditure. Gas recovery could be accelerated meaning faster payback times and, most vitally of all, those billions of pounds worth of stranded reserves left behind by weak pressure could finally be brought to the surface.

Convinced of the undoubted value of such a technology, these major gas producers went away and did their own research into the feasibility of Musgraves idea. One by one, they stepped up to the table and clubbed together with Corac to form a joint investment programme to which they would contribute both cash and gas industry expertise. These partners read like a Whos Who of major European producers, Conoco Phillips UK, Repsol of Spain and Italys ENI. Mindful of the strategic as well as financial desirability of recovering stranded North Sea reserves, the Department of Trade is also grant funding the project on an ongoing basis.

The research, testing and planning that has gone into this programme almost makes the Normandy Invasion look like an impromptu barbecue. The star of the show, the Downhole Gas Compressor itself, is now just over half way through a year long final rehearsal at the Spadeadam test facility in Cumbria. This is probably the closest the DGC can get to operating a mile or two underground for months on end in extreme conditions. Last minute snags are being ironed out prior to actual deployment in a real gas field early next year.

Meanwhile the gas industry partners have been busy identifying suitable sites for this initial deployment and have so far earmarked 170 wells in their existing portfolios which is a tiny fraction of the 100, 000 + potential candidates worldwide. All this is scheduled to come together in the first half of next year when the very first actual field trial gets underway. This will be crunchtime for Musgrave and his shareholder fan club. If, despite success in artificial trials, the first downhole experience proves intolerable for his magical box of tricks, Coracs shareprice ( currently back up to around 50 p ) will probably halve to a level where it can be supported by growing non-gas compressor revenues. If, on the other hand, the deployment encounters no more than teething problems, it will be bonanza time for everyone involved.

Gas companies whose wells could accommodate Coracs DGC could see a 20 40 % uplift in total production worth billions. Corac itself will be subcontracting manufacture of the units but will handle final testing and assembly. The mathematics are simply mindnumbing. Each DGC unit will gross around 1 million to Corac with perhaps 400 k in operating profit. Furthermore, we have now learned that each unit will need replacing every two years so there will be a growing repeat demand in addition to each fresh sale.

As you can see from the News Archive, we have probably devoted more column inches to this one company than to any other. Never in our experience have investors had so much advanced notice of a share capable of rising 20 or 30 fold over a reasonable period of say 5 years. We base this on our ultimate target of DGC sales eventually hitting 1,000 p.a. which looks even more achievable now in the light of the replacement market. Without ANY contribution from Coracs industrial and refrigeration compressors, this would equate to annual sales of 1 billion and net profits of several hundred million.

With the company currently valued at only 38 million, a market capitalisation of 1 billion would imply a 26 fold rise in the shareprice if the company hasnt been taken over in the meantime. The timetable is critical. Anyone buying now at 50 p risks the temporary loss of say 30 p if the initial downhole deployment fails irretrievably. We should know sometime between next Spring and the Autumn. If all proceeds smoothly, the stock will most likely go into virtual ascent.

The best tactic is to secure a worthwhile foothold now leaving the option to average up at even 2 or 3 if and when success is verified. Hopefully, many of you are already in at between 30 p and 40 p as the result of earlier articles.

On paper the product potential is undeniable, but why is it taking so long to obtain firm commitments from the end users? Tests can only go on for so long before either the product is acceptable or not.

halifax????
what you talking about??????
Corac have three oil/gas majors in tow, paying for all development and these will be the first users

Down hole conditions are harsh, testing must be extensive
Corac are, with their gas partners, now on the last lap of development, they have a prototype running in Cumbria, this prototype is subjected to extremes of pressure, temperature and particulates to try to simulate the down hole environment.

Testing is due to run all of this year, with the first live deployment slated for next year.
This is a development project that could bring untold wealth to all participants, its not a black or white thing. testing will continue for as long as is required, that must be the case.

Well I hope the testing period ultimately results in the three oil majors buying the product, perhaps when it is deployed in real conditions its value will be realised.

the three majors are lined up to buy-they ain't backing DGC for the last 4 years for nothing!
Numis report says they have identified an initial 170 wells or so, thats big bucks for CRA at tasty profit margins.
I think the share price will advance as CRA move through each stage.

Does one know how much a unit will sell at so that shareholders can get some idea of future sales potential?

yes, they sell for around 1m a go with gross margins of around 70%

add in refurbishment, every two or three years, and you get a nice re-occuring income stream.

estimates are that there is a total 100,000 gas wells globally (out of 500,000) that should be suitable for DGC
1% market penetration is roughly 1bn in sales!!!!...not to mention those re-occuring revenues

interim results coming up soon
hear there should be a lot of activity from CRA over the next few months
imo + dyor!

announced today, Cenkos are new brokers to CRA
gearing up for serious news-flow!

Moving up again, some big buys recently

institutional buying again

Corac Holding(s) in Company


RNS Number:9171E
Corac Group Plc
01 October 2007

1 October 2007





Corac Group plc ("the Company")



The Company has been informed on 1 October 2007 that, as at 27 September 2007,
Gartmore Investment Limited now holds an interest in 8,564,877 ordinary shares
of 10p each in the Company. This holding represents approximately 11.448% of
the voting rights of the Company's issued share capital.



For further information:



Corac Group plc

Gerry Musgrave, Executive Chairman (01895 813463)



Cenkos Securities plc

Simon Southwood (020 7397 8923)

Corac looks like it is winding up again for a break-out >50p

L2 pushing up again, just one MM left on 50p now (SCAP)

after a very slight dip back, CRA is yet once again knocking on the 50p door
this time?

100k buy reported.

inching up again