Press and Journal on Thursday May 3, 2007.

Aberdeen well-construction technology firm Caledus revealed yesterday it was on the verge of landing big contracts in the Gulf of Mexico.

The firm said at the Offshore Technology Conference in Houston that its SlimWELL® well-construction system had caused a lot of excitement since it came on the market at the end of last year.

Caledus chief executive Paul Howlett, said it had had inquiries from at least 30 operators worldwide, adding “We were mainly eastern hemisphere focused when we were developing the technology, but now its commercially available the market opportunity is so significant in the Gulf of Mexico.

There has been only one SlimWELL® installation to date, worth around £325,000, in the southern North Sea but a further six are on order for the North Sea this year.

SlimWELL® is said to be capable of being applied to all types of well, with the potential to reduce construction costs by up to 50%. Mr Howlett added “In additional, there are also significant environmental implications because it reduces the amount of drill cuttings significantly”. He said OTC was a great opportunity to meet potential work partners.

“Customers are demanding that we are bringing our capability to the Gulf of Mexico”. This is Caledus’s third OTC. Mr Howlett said “It has been invaluable in helping us understand the market. You get a short, sharp hit”.
Last December, Caledus announced its third acquisition.

It acquired Brunel Oilfield Services UK, of Dyce, from owner and managing director John Thornton for an undisclosed sum. A spokesman for Caledus, whose 40 employees are divided equally between its Rubislaw Terrace HQ and a manufacturing operation at Inverbervie, would say only that it was a seven-figure deal.

Brunel, which make engineered polymer thermoplastic casing and liner centraliser for use in oil and gas wells, has kept its name. It employs four people.

Turnover for Caledus came in at nearly £4million in 2006. It is predicting a further rise to more than £7million this year following the integration of Brunel, which will increase its product range.

Caledus was established in 2003 with just four staff. Its workforce is expected to grow to over 75 by the end of 2008.

In 2005, it acquired Inverbervie-based Johnshaven Precision Engineering to help it to accelerate product development. Its made its first acquisition on August 2004 paying £412,000 to Hydril UK for the intellectual property and inventory of drilling-tool business Rototec.