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.

nothing spectacular, just a tie up with the third largest services company in the world, ten a penny those sort of announcements!
LOL!

i know all about BH as they are a client of ours ..... however the tie up per se does not produce pennies ..... i am also uncertain of the meaning and implication of the "initial 12 month period" and when that starts and finishes

SP keeps drifting down perhaps in line with the market, but is no news good news?

actually the tie up does produce pennies, there is a release on CRA's web-site re the BH deal that gives slightly more detail

http://www.corac.co.uk/home/news/corac-announces-jda-with-baker-hughes

in which it states the deal gives CRA additiional income.
I understand this is a decent upfront payment, but not something BH wanted putting in the RNS.

re the 'initial 12 months', that has already started, a few months ago.
The meaning, or purpose of this, is for BH to design a production ready system of cabling and connectors etc
following this, BH will be selling and marketing DGC units on a world-wide basis. The deal includes things like minimum sales figures.
All in all, a very good deal indeed.

thank you for the elucidation ..... all we need now is for the "magic machine" to indeed perform as promised

that would be nice!
Given that they have been testing and modifying for around 18 mnoths now, the degree of confidence is very high, but nothing is guaranteed, ofcourse.
my own view is it will be a question of how well (no pun intended!) it works.
I feel sure that they can get the unit to perfrom adequately, just a question of how well it does from the outset and how long to fix any possible gremlins they might find.

Should shareholders be concerned if gas prices fall? At 1m a well would potential sales be affected?

Anyone remember Hoot ramping Corac at the grand national a few years ago? Classic!

Yes!

I've still got the clip!

Unfortunately it didn't do much for the share price. I seem to recall it being in the high 30's back then.

post it up - or email it to me for me to post up. would love to see it again.

G

Hi Gausie

I've emailed it to you.

Thanks N - will post it up.

If anyone's not seen it - this is Hoot at his very best on BBC1 ramping Corac at the grand national.....

If i top up anymore here they will have to release an RNS...!

something, possibly good, looks to be afoot ..... sp is up about 10% and IG shows trading against phone call only ...... in fact, that could mean that the share is in an auction phase or similar in the market ..... would have said suspension, buyt that would have given the wrong vibes!

cynic - neither suspended, nor auction according to L2. All 4 MMs moved up, shore, winterfloods and Kleinworts all moved about 10.30am. Cenkos (quoting lowest prices) moved @ 8.23am.

perhaps IG are just at their internal limit, or even a screen error .... anyway, more than happy to see sp +10% though + a lot more would be better!

Maybe - I'd expect the offer to move up (probably to 27p) when cenkos catch up.

Am expecting this one to rise on expectation of the forthcoming trial in Italy soon, only question is when??? was factoring in the turn of the year, but of course it is so oversold on potential that it could rise for any number of reasons... Doesn't get the coverage on this board, but the sheer potential cant be ignored by the market for much longer... I dont think Baker Hughes would have gone to all the trouble of signing and paying for a joint marketing agreement if they thought they would only be installing the one string of units in Italy and not selling multiples of units in the near future... A successful trial and the way that gas is extracted will have been changed for good - Corac are already working on much larger units capable of handling much higher temperatures than the current (low risk) gas well in Italy - with the view that the machines will half (or less) the number of wells needed to drain a field, add the savings together with the massive increases of reserves that majors will be able to book and it wont take long for the names of Exxon and BP to be added to the list of names enquiring about becoming a JIP, dont forget the market for ESP's in oil wells is massive but shared between many suppliers - CRA's patended air bearing DGC has no competitor... 8years of R&D and you can buy them now at the business end for about the same as they were 4 years ago, trial in Q1 next year - best risk/reward on the market bar none... imo