Caledus, the Aberdeen headquartered well construction technology oil and gas service sector business, announces today a major milestones in its continued development of unique downhole tools.

The company, which is enjoying significant global growth from its existing product-lines has recently achieved twelve commercial runs of its newest downhole tool.  The SwivelMASTER® introduced in late 2006 is a patented tool design to enhance the deployment of sand control screens into ERD (Extended Reach Drilling) wells. The use of the technology increases operational efficiency whilst at the same time enhancing safety at the rig site. It is particularly significant that the up-take of this new technology is in such complex wells where the cost of failure would have been high, a testament to the confidence that Operators have in using Caledus developed equipment that is new.

The company has introduced SwivelMASTER® in the Eastern Hemisphere to date, in the North Sea, Africa and Asia-Pacific, particularly in Australia and for 5 different Operators already. There are plans to take the tool to North America this year, having opened a Houston office in May 2008, and the company is currently in discussions with seven new clients around the globe..

Caledus has also agreed a US$850,000 deal with oil major ExxonMobil to fund the development and testing of a Heavy Duty “Arctic-Service” version of its SwivelMASTER® technology, which once developed, extensively tested and qualified, and with ExxonMobil final approval will be used in some of the World’s most complex drilling operations on Sakhalin Island, the 600 mile long strip of mountains and forests off Russia's Far East, in a significant ERD well drilling campaign.

SwivelMASTER® has already led to six new technical positions within Caledus between Aberdeen and Australia four of which are already filled. The company expects to grow staffing levels from the current 45 by 50% during the next twelve months between Aberdeen, Australia and the USA.

“It is encouraging to see the rapid uptake of a new technology like SwivelMASTER® by so many Operators in such complex wells when our industry if often accused of being risk adverse and slow to adopt. This is only achieved by teamwork between the client and the provider to identify the benefits, assess and mitigate identified risk, and manage the deployment is a safe and efficient manner. All the staff at Caledus delighted to see this product being used so successfully” commented Paul Howlett, CEO.