Press Release 24/6/03

Caledus Limited, the recently formed oil and gas service sector provider is pleased to announce that it has reached agreement with Polar Completions, a division of Precision Drilling Technology Services Group Inc., a subsidiary of Precision Drilling Corporation to distribute Polar's complete range of Liner Hanger and Completions Products in the North Sea and parts of Europe.

Precision Drilling Corporation, headquartered in Calgary, Alberta, Canada, is the largest Canadian integrated oilfield and industrial services contractor and a global provider of products and services to the energy industry.

Polar Completions is an emerging high tech service provider in the completions sector. This combination of experience and expertise will bring new technology and techniques to the region, plus equipment and service quality that will raise the bar and achieve the performance, technical and commercial, required in this increasingly mature sector.

Commenting " I am extremely pleased to make this announcement, about Polar Completions and Caledus partnering to bring this Canadian technology to the North Sea. Together Polar Completions and Caledus will be nimble, reactive, and build a truly fit for purpose contracting model for the Operators in the region. I look forward to the first of many of our completion installations in the near future." Says Paul Howlett, Managing Director of Caledus.

Extract from Prior Release:After more than 20 years working in the oil and gas service sector, Paul Howlett has branched out to form a new start-up service company here in the North East.

Caledus Limited has been formed to supply equipment and services to the Drilling, Completions and Down-hole Fishing sectors of the industry. The business is to be headquartered in Aberdeen, at 7 Queens Gardens.

Paul most recently held the position of Managing Director Eastern Hemisphere for SPS the internationally known provider of well-bore clean-up services, having joined SPS back in 1995 when the company was just 3 full time staff, SPS now has a staff of more than 200. Prior to SPS Paul worked with Nodeco, the well known Liner Hanger and Completions Company acquired by Weatherford, and prior to that BJ Services.

Paul's name appears as inventor on more than 30 patents for down-hole tools and completions products. Innovation is to be a corner stone for the development of Caledus

At a time when many service companies are down-sizing, cutting costs and rationalising their business, Paul has decided that there is an opportunity to create a world class service company to provide services to the existing Operators in the North Sea, the recent new entrants and the new start-up's, as well as international opportunities.

"It has always been the case that innovation, flexibility, out of the box thinking, and 1st Class service, has come from SME's and Caledus is to be no exception to this." says Paul.

Caledus is close to closing a number of agreements that will bring new drilling and completions technology and techniques to the North Sea, and these are to be the foundation that Caledus will add homegrown innovative complimentary products too.

Caledus has already submitted a number of patents applications in its own name. Several R and D projects are already being actively worked upon.

The business strategy for Caledus calls for the recruitment of more than 10 people in the short to medium term with various disciplines with-in sales, operations and support functions. Interested parties, with experience, the drive to succeed and who relish challenge should make contact by emailing info@caledus.com

Commenting Paul says, " I am greatly encouraged by the support and advice that Caledus has already received during this start-up period. The oil and gas service sector is dynamic and new challenges are presented almost daily to those working within the sector, taking up these challenges and the satisfaction of solving some of the problems makes for an interesting and varied working life. I am looking forward to building a team of like-minded individuals who share my desire to work the problems and produce solutions"

"Operators constantly strive to reduce operating time, reduce down-time, reduce CAPEX, reduce risk, whilst at the same time maintaining the highest standards of safety and environmental awareness, and achieve stunning results with the project, what better challenges can a new business face"