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.

yep NICE.

AXA Framlington announced today as another institutional shareholder

On the move again, *damn*! i was going to top up @56p couple days ago, and thought it might drift lower, will cost me a tad more now...!

well got my top up, within a hare's whisker this morning, not sure about the markets in general, but will use any weakness to build a larger than my usual stake in this company...

Money where mouth is, bought more this morning @45.75p, a showing of my confidence in this company...

bit of buying this morning...

yep.... people buying in at 52p. With the testing of downhole gas compressor in Cumbria producing positive results then could be interesting times ahead.

Besides the flow loop testing producing positive results, then todays share price rise is certainly positive. But then again Spadeadam (CRA test area) used to be Intercontinental Ballestic Missile testing centre - so some fireworks to be expected....

11,222,160 placement shares at 42p raising 4.71 million is a dilution of 13% approx. I would expect sp to drop shortly to 48p area and maybe down towards placement price, unless all the placement shares are already allocated. Then there may be a slight fall as some of those getting shares at 42p will take profits.

CRA at -6p mid 47.5p as I forecast.

Somewhat overweight on these, and for good reason, even tempted to top up on next dip, having missed the chance yesterday, looks as though the market doesn't mind the placing as they are flying again today... another positive result from the compressor testing will send the sp into orbit, i feel the market is only just catching on...

May well be with nervous markets that holders will take profit at the 59/60p level.
I also missed the dip, but will hopefully catch the next one.

Merry xmas and happy new year everyone.

and to you oily.

from the worldwidebb



http://www.worldwidebb.com/news.php?id=latestnews&cast=392

Next up was a repeat of our 2006 Share of the Year, CORAC, recommended at 37 p. Today they stand at 51 p for a handy 37 % appreciation having touched 60p in the Autumn. While this improvement is respectable enough in trying market conditions, it is a touch disappointing considering the historic strides that the company has made this year in bringing its revolutionary downhole gas compressor closer to commercial exploitation. The explanation probably lies in the fact that the market is currently having to digest a 4 m. share placing struck at 42 p earlier this month.

This funding, which still only leaves the group valued at 43 m, is earmarked to finance a full scale final testing and assembly facility for the DGC as already flagged in these pages. This should ensure that Corac is in a position to supply sufficient units to meet initial demand once final field testing is completed in the second half of the year. It is worth reminding ourselves that, at around 1 m a throw, it will only take the manufacture and sale of 20 units a week for the company to achieve an annual turnover of 1 billion a figure which implies a shareprice of over 11. If you think this is fanciful, bear in mind that, at any one time, there are 100,000 gas wells worldwide that could benefit from the output boost of up to 40 % afforded by Coracs pioneering technology so there is likely to be a waiting list for just 1,000 a year.

As we have said before, the Corac story is all about time and patience but this time next year the companys first half dozen units should be fully operational at Repsols largest field in Argentina and also at one of ENIs fields either in Italy or North Africa. Meanwhile there should be plenty of exciting newsflow regarding the companys other industrial compression products and we can see the shareprice moving from bottom gear to at least 3rd gear in 2008. It looks almost certain to touch 1 at some point while even 2 could be reached if the first real-life field trials proceed without any showstoppers. As usual, the only thing likely to prevent Corac from eventually becoming a 20 Bagger is a predatory bid from one of the oil services giants.

nice find notlob--I hope to add to my small holding as and when.

cheers, mp
looking to top up myself.

Thanks Notlob - v interesting article

i am a fan of the sector, especially PFC which has a proven track record and a well-deserved reputation ..... CRA may be worth further investigation as a seondary investment, but its cap is tiny (illiquidity problems for trading!) and the indicated spread is 4p = 8% which is unacceptably high ..... of course one may be able to deal inside that

NMS is a paltry 5000 shares = 2750

I would suggest that Corac is not a trading share then, Cynic, for the reasons you suggest.
The cap is tiny (we agree on something!)

Corac looks to me as presenting an excellent risk/reward, viewing it as a medium or long term investment.

The technology has the ability to generate very significant increases in gas recovered, it is a unique and patented technology that is fully backed by Repsol, Conoco Philips and ENI.

The total market for DGC has been estimated at c.100,000 gas wells. The DGC units are expected to sell for 1m a shot, with a significant recurring revenue element from refurbishment every two or three years.Margins for Corac are expected to be high.

With a prototype operating in Cumbria to the satisfaction of the major oil backers and the first units slated to go downhole in 2008, then Corac looks good for 2008.
This technology, when fully proven, could well be worth over 1bn, although I suspect one of the oil service co's, like Petrofac, could well look at taking Corac out. Hopefully that will not be less than a couple of quid.