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.

latest RNS, while vaguely encouraging, did NOT say that the filed trials etc were all going great guns ..... mere conservatism, or hiding glitches?

In this market the news of further delays can only be taken as negative.

did i miss something? .... i saw no mention of any delays

Repsol trial delayed in Argentina was to be first, ENI trial will not happen before first quarter of 2009 according to RNS.

we obviously saw different announcements!

completely oversold imo, released interims on a bad day at the office, still expecting another order from Repsol, and announced working in conjunction with a "major" oil/gas service supplier. Gearing up for big things and must be a mountain of upside from here. The design was altered slightly to accomodate the well in Italy hence delay of testing to next quarter - its all still happening, except now you can get in for half price of two months ago... im adding

nevertheless, halifax's comment is valid ..... it was extracted from the interim report

BigTed----very tempting to average down on CRA (paid 72p for mine) as it is with many other aim stocks I hold, but I feel there are better (blue chip) opportunities around and this may be the time to start picking some of them up, so I bought into BT.A this morning. Good luck all.
2517

very easy to get tempted, but this boiunce may easily prove short lived as is certainly very fragile, certainly until the US nincompoops and self-serving politicos get their acts together

also, as nothing of any significance is likley to emerge from CRA for at least 6 months, there is surely no hurry to buy, though i shall continue to hold

hmmm possibly, however, with only 86m shares issued and the possibilities that follow a successful trial, it will only take a rumour of the order from Repsol for their trial and the so will surely take off again regardless of the condition of the markets at the time. Don't forget market cap is a paltry 40m Eni I believe have identified a field where, upon successful trial would want a further 12 machines, and thats just for starters without the other jips! Do the maths...

but that always assumes CRA's magic machine actually performs as on the tin

BigTed-----volume up as is the sp, looks like you were right to add.
2517

Back from holiday yesterday and been able to catch up properly today, added 20k earlier and just in time i think at 45p&46p, rumour is of announcement of some contract tie up with Baker Hughes, not sure how strong substance is, but if the case, would expect these to rocket... truth is the DGC cannot be allowed to fail now - its too important and besides - as stated before we know they work as a flow loop test has been continuosly running now for some 18 months... the only question i have is on the maths - ie is 40% extra gas a bit far fetched. I guess you have to make up your own mind but i dont believe there is better risk/reward anywhere on the market imo

quite tight to deal in today though i managed to add a few to my small holding (along with the goats, cows and pigs!) ..... this stock's a bit illiquid which can be a pain

the estimates of the extra lift of gas raised by operation of DGC vary from 25%-50% (source: CRA web-site), so 40% is at the top end of estimates.

The variation is due to a number of factors, like depth of well, reservoir pressure, borehole diameter etc etc.

25% is a very strong figure that cannot be achieved with other methods and is worth a small fortune to gas operators.

always supposing that CRA's magic pump performs as promised, and that of course still waits to be seen ..... but a bit of my own money says it's a reasonable bet

Cynic how do you differentiate between CRA,HAWK ,SEO,VIY etc none of them have delivered anything yet in the way of sales/profits....it is still jam tomorrow I am afraid.

HAWK prob less so than most ..... SEO is totally crap as i have always posted there ...... CRA at least has a good idea that is out on proper trial ..... VIY has a huge amount to prove (i only hold 1k)

THE COUNT--->ALL

My Q&A with CRA.


PART 1.

I met with Gerry Musgrave, at the offices of Corac last Wednesday in the afternoon, after threatening him with a long meeting back from the last AGM.

The meeting started off with a brief company demonstration, and then we tucked into the many questions I had prepared. A lot of these I knew the answers to, but for the sake of completeness and comprehensiveness, I went into quite a bit of detail. We have already discussed much of the material I will be posting on this board, but again, for completeness, I will try to include everything so apologies if I bore you all further this Friday afternoon.

I came away feeling as positive as ever.

It also is quite clear that announcements on both DGC and IA are very close, although try as I may, I couldnt force the good Prof to divulge times. So I tried a different approach instead.

I said, given the delays you have already seen, and given that you should now be more aware of the potential pitfalls and hurdles in sorting out these type of contracts, can I at least ask you if we will have to wait beyond Christmas for announcements. I felt I gave him so much leeway there that I could try and get a commitment. He assured me that we were expecting news long before Christmas, but as always, take it at face value and dont try to read more into that. From talking to him for a few hours, I think it is literally just round the corner as B****** has been saying... but Ive learned not to get too carried away with expectations and timings because in these markets, I take nothing for granted.

There are also orders now due any day on the IA side. It was hinted that ideally, they would like to announce the new JIP partner along with orders for more IA units. I think this is precisely what we will get.

I think this is the biggest news and I am merely seconding what B****** has been saying, but I got this as a direct result of a face to face meeting.

I will now, in the second part of my post, go into detail with the many questions I asked, and there should be a few very interesting snippets in that as well. And yes... it all sounds very exciting, short, medium and longer term, but more of that later.


So for now, Ill stop there and say... END OF PART 1. PART 2 to follow shortly.

Regards,

THE COUNT!