Perth-based Coretrack Ltd has entered into a six-month commercial testing agreement for its core level indicator recorder unit with Halliburton subsidiary Security DBS Drill Bits, the company has announced.
Perth-based Coretrack Ltd has entered into a six-month commercial testing agreement for its core level indicator recorder unit with Halliburton subsidiary Security DBS Drill Bits, the company has announced.
The core level indicator is designed to help oil and gas companies accurately determine oil and gas reserves through the acquisition of a core sample during a coring operation.
Under the agreement, DBS will assist Coretrack in further field testing and international marketing of the CLI, as well as passing on all revenue from the device to the company.
The agreement also provides for Coretrack and DBS to work closely together on a number of commercial matters and discuss potential opportunities beyond the initial term, and DBS will provide Coretrack with an advance payment which will be used for the continued development of the core barrel telemetry and surface telemetry interface.
The full text of a company announcement is pasted below
Coretrack Limited is pleased to advise it has entered into a Commercial Testing Agreement with Security DBS Drill Bits ("DBS"), a product service line of Halliburton's Drilling and Evaluation Division.
The term of the agreement is six months, commencing 15 August 2007. Under the agreement, DBS will actively support Coretrack in the further field testing and marketing of the Core Level Indicator (CLI) recorder unit with DBS customers internationally. The agreement also provides for Coretrack and DBS to work closely together on a number of commercial matters and discuss potential opportunities beyond the initial six months term.
Coretrack is also pleased to advise that in addition to the field testing, marketing assistance and logistical support, DBS will provide Coretrack with an advance payment which will be used for the continued development of the core barrel telemetry and surface telemetry interface. Details of the advance payment are commercially confidential. Under the terms of the agreement, all CLI related revenues received by DBS from its third party customers will be passed on in full to Coretrack.
Mr Lorne Rutherford, DBS Product Line Manager for Coring Services says, "I am delighted with the opportunity to work with the Coretrack people to establish this innovative technology that will prove to be highly beneficial for the coring industry, and look forward to future advancements of the technology and working relationship."
Coretrack views the agreement with DBS as a great strategic platform to secure international market access for the field testing of the CLI recorder. Moreover, this agreement presents a great opportunity to work closely with one of the world's largest and most reputable service providers to the oil and gas industry thereby maximizing the CLI's commercialisation opportunities.
"This agreement further strengthens Coretrack's position as a credible R&D based provider of technical solutions to the international oil and gas industry," says Mr. Nanne van 't Riet, CEO of Coretrack.
