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.

certainly double average volume, but that can be deceptive when you get left and right hand of an institution moving the stock around, or similar

Up 22% atm.
2517

there has been much excitement in the shares of this shitty little company in the last couple of days, and again this morning ...... no announcements, but it would be nice to think there was something stunning in the offing

cynic, ridiculous comment about Corac.

yes there is something in the offing, its called DGC, its the reason Baker Hughes, ENI, Repsol etc etc are all on board.

until proven otherwise, it is a shitty little company (whose shares i hold) ..... the companies involved have been "on board" for quite some time, so with no comment from CRA, the significant increase in sp (? +50% in last 10 days?) has no obvious explanation ..... i confess i should have checked volumes which may have given minor insight

'unless proven otherwise, it is a shitty little company'

don't be so stupid. And just because you hold shares in the company, but clearly don't understand a thing about them, I'm afraid that does not give you any greater 'right', in fact, it just compounds your errors.

Ofcourse the companies have been on board for some time, this is a long term project, or did you think it was a one week thing?

re significant increase in sp, clearly, when a share has been wacked down beyond (imo) all reason, then a few pence increase will show up as a large % increase.

fyi, a large over-hang was cleared on Friday, hence buying pressure produced a rise, simple really.

As you have such a low opinion of the company, its achievements and its partners, I am surprised you continue to hoild the shares, unless you feel holding gives you some sort of insight to post pure drivel.

your abuse is fascinating and revealing ..... please continue to post similar for all our enlightenment and amusement

very droll, cynic
the only abuse that has been posted is your abuse of Corac, a company which you profess to hold but clearly know very little about.

I assume your dry one-liners response is because you can't actually respond with anything sensible or rational regarding Corac.

Still, given the nature of your original post, perhaps I should'nt be too surprised by that.

Have a good day.

i happen to like the oil recovery and support sector .(like PFC especially) ... CRA just may get it it right, in which case it will be an exciting company (so might BRR in another field - hahaha!) ..... meanwhile, i do not need to analyse what the CEO had for breakfast for my only real interest is whether sp will rise or fall

Up 30% atm.
2517

Talk of a bumper revenue contract lifts Corac Group .... reported from Express

Is anyone is going to the presentation later today???
Be interesting to put faces to names etc!

Yes

See you there then...

*waves*

if DGC works then CRA will be a 1bn co, end of story.

From being quite positive earlier CRA has now turned quite negative.
2517

Along with most of the market it seems.

shakey shakey

interesting update lifted from a d v f n, posted by The Prophet yesterday:



OK, here is an up to date up-date on Corac.As ever, dyor , but all posted in good faith.

First up, the ENI trial. Everything is on track as per previous releases, ie fourth quarter this year. The schedule, order of work and procedures are all laid down and agreed. But please dont think in a project of this complexity and magnitude that there is going to be a release that says at 4.31pm on Wednesday the whatever saying that dgc is going to be lowered down-hole. It dont work like that! Although I am sure we will have news releases as we progress.
What we can say is that everything is on time and all the partners involved are confident of a good outcome.

The ENI trial will be used on wells that are waning, and the units will have to work hard to give the extra lift. The expectation is for an extra 20% lift. The normal range is for 30%-50%, but with these slower flowing wells, everyone involved would be absolutely delighted with 20%, and CRA think on the qt they may squeeze a bit more out than that. Out of interest,btw, modelling has shown that whilst 30%-50% is the normal range, in some cases it could be higher than 100%.

The situation with ENI is that they have extensive interests in the Po Valley, where there is potential for several hundred units to be used. Success in this first trial is expected to lead to orders for the Po valley.

The benefit to ENI in these waning wells is not just the 20% extra gas. The situation is that these sort of wells are near the end of their life and the alternative to DGC is to decommission them and shut them down. So it is the extra few years of gas that DGC will give plus delaying decommissioning that is the benefit.

Houston trip, the Proff has just spent a very fruitful time in Houston, speaking to a number of companies on the benefits of DGC. We are talking about some of the largest companies on the planet. There is a reluctance to give names, but if we look at the members of the ITF ( the body that organises JIP schemes) you can see the sort of companies that are likely to be in the frame, like BP, Shell, ExxonMobil, Woodside etc etc.

http://www.oil-itf.com/index/portfolio

As ever when dealing with multi-nationals, things move at a modest pace, but moving they are and in the right direction, with Baker Hughes helping the process along. I think it is a decent bet that a major will get signed up in the not too distant future. Interesting as well that CRA also talking to smaller companies, who are happy to move things along at a brisk pace.
So, interest in DGC is strong and growing, with even talk of one company wanting to DGC the whole field straight away! (although I assume they will want the ENI test results first)

Talking of Baker Hughesit is often the case when a small company signs with a major, the best bit is the signing, as things can tend to go down-hill (nearly said down-hole, which would be good!) from that point on. But all the feed-back coming from Corac on this deal is very positive and the relationship is clearly working very well. Imo, this is vital to CRAs future plans , in that they need a global partner that is known and trusted by DGCs potential customers and who has the ability to roll out and service dgc on a global basis. Baker Hughes can do that, no problems, and that looks where they are heading. In a few months time the Baker Hughes deal is a year end, at which point the deal moves into a full on marketing and sales deal. There would seem to be very little chance of this not happening. The frame-work for the deal was agreed last year, but there will still be a few details to sort out and agree on. The deal will include minimum numbers of units over a given time-frame etc etc.


Cash, it was re-iterated that CRA are fine for cash right through this year and next year. That is without any further income streams that are not already known, ie more orders/trials for DGC, further Industrial Air orders. Cash burn should be lower this year, as Corac will receive monies from Baker Hughes (part of the deal) and monies from ENI for the unit. Some of those monies have already been received in this half year.
Regarding if/when CRA get larger orders for DGC, they can finance that either by up-front deposits from the companies involved or by bank loans based on the orders, they dont envisage any problems on that front.

The time-delay with the ENI trial has been unfortunate, but the time has been used to good effect to re-design certain elements of the unit and reduces risk by these design changes, all of which have been fully tested at Spadeam. The confidence within the team at Corac is very high and the level of activity regarding DGC is strong and growing. The Proff will talk at the AGM on these things, so well worth any interested investors attending if they can.

Industrial Air. The situation with Fu Sheng in China is that orders have fallen of a cliff as companies have cut back on cap-ex and they are re-furbishing existing equipment rather than buy new. But there are signs of a pick up in economic activity and there is an expectation for orders on the second half of the year. The case for CRAs IA machines is very strong, paying for themselves in a year on reduced energy costs, that is not counting reduced maintenance costs compared to incumbent machines. But Corac should also now benefit from the fact that they have got machines out in the market place with both Fu Sheng and LMF, and that these machines now have had a reasonable length of running time behind them. These two compaies have been the trailblazers, prepared to put new technology into the market place. That now makes it much easier for Corac to speak to other companies and Corac are now active in widening the customer base, so I would expect good news on the IA front in the second half of this year.


There we have it. I look forward to hearing the Proff at the AGM.

The situation here is we have world-beating tech with major partners on-board, and others looking to join the party as well. DGC makes massive economic sense for the companies involved, and its attractions are only likely to improve. Clearly there are still risks with DGC, but the risk/reward is compelling and the level of testing , partners on board, problems overcome to date all give me confidence of a good outcome.
As ever, please dyor!

moving up nicely today, with imminent news-flow, looking good.