Press Release 16.01.06

Caledus, the oil and gas service sector business headquartered in Aberdeen, announced today that it has appointed Jeremy Henderson as non-executive Chairman of the company. Mr Henderson has a wealth of experience at executive and non-executive level within the oil and gas service and precision engineering sectors; he is a well respected figure in the local business community. “Caledus is extremely pleased to be able to attract someone of Jeremy Henderson’s calibre to the board of directors of Caledus. His involvement with medium sized technology based companies that have grown into large ones and internationalised their businesses significantly is something that Caledus hopes to benefit from in the months and years ahead” says Paul Howlett, Managing Director.

Jeremy joins Caledus at a very exciting time, as the company has commenced trials of their SlimWELL™ well construction system in Canada for a large independent operating company. The trials are expected to be the springboard to a number of other installations around the World during 2006.

Whilst the business is still developing and investing considerable R and D sums in SlimWELL™, its main focus for the future, Caledus has achieved a group turnover in excess of £2m during 2005 from its other product-lines. The 2005 revenue is largely from the UK/North Sea market and Caledus expects international revenue to make a significant contribution during 2006.

SlimWELL™ is an evolutionary well construction system for oil and gas wells that has the potential to reduce well construction costs by more than 50%, based on a series of close -clearance flush-jointed liners, coupled with novel flow diversion, anchoring and sealing features. SlimWELL™ reduces costs, enhances safety, whilst at the same time reducing the impact on the environment, through producing less drill cuttings, consuming less steel casing, mud and cement during construction, reduces construction time, without compromising well integrity or intervention ability. SlimWELL™ can be applied to all well types, new and old, from the most complex Deepwater HPHT or ERD wells, to the most straightforward of shallow land operations. Significant interest is being shown in SlimWELL™ from the largest of international operating companies to the smallest of operating interest companies as they can all see the benefits of applying SlimWELL™ in its partial or full well form.