Perth company Coretrack Ltd has launched a public share offer to raise just more than $2.2 million to support the development of a new technology designed to improve the efficiency of oil and gas exploration.
Coretrack estimates the oil and gas industry spends more than $650 million annually to obtain core samples that are used to make reserve and production estimates.
A perennial problem in the industry is that drilling operators can not be sure if a core sample (ie a section of rock) is being successfully acquired.
Coretrack has developed a core barrel capacity gauge that aims to provide definitive and real-time information to the drilling operator, who currently has to make an educated guess about the status of their drilling.
The technology was developed by William Connell, who has 30 years’ experience in oil and gas drilling, and engineer Damian Stockton. Both have been engaged as technical consultants.
Coretrack’s IPO is proceeding at a relatively early stage of the commercialisation process, as the technology is still in laboratory testing.
The proceeds of the share offer will be used to fund continuing research and development.
The company is planning to seek government grants to assist with that process. It plans to proceed with onshore field trials over the coming year, followed by offshore trials in about 18 months.
Managing director David Orth said Coretrack was currently in negotiations with two oil and gas companies about field testing of the technology, which involves the application of telemetric sensors to the drilling equipment.
“The technology will tell the people on the surface if the core is being cut the way it is supposed to be cut,” Mr Orth said.
Coretrack’s strategy is to establish a coring services business, which it believes is the most effective way of introducing its technology to the market.
Professional director Robert Collins has become Coretrack chairman, while non-executive directors include Neptune Marine managing director Christian Lange (also a former CEO of drilling equipment company SDS Corporation Ltd), and Neptune Marine and Dyesol director Cathryn Curtin.
The float is being managed by Maiden Capital, a boutique corporate advisory firm established by former Tolhurst broker Trevor Beazley.
