Corac wins pump deal

Compressor technology developer Corac has reached a joint development agreement with leading electrical oil well submersible pump maker Centrilift.

AIM-quoted Corac says the agreement means that Centrilift, part of major US oilfield services group Baker Hughes, will adapt its cables and connectors to fit in with Corac’s down-hole gas compressor, to be deployed in Italy by Eni, the state-owned Italian oil corporation. Corac and Centrilift have agreed on a joint marketing and licencing agreement to sell down-hole gas compressors and related equipment to customers in the international gas market through Baker Hughes’s worldwide sales and support network.

Gerry Musgrave, executive chairman of Uxbridge-based Corac, says Centrilift’s expertise will be ‘invaluable’. He argues this agreement ‘will strengthen our route into global gas markets’.

Shares in Corac, which lost a first-half £1.5 million after spending £1 million on research and development, have proved volatile since the company floated at 105p seven years ago. After falling to 25p in 2005, they recovered to 94p last June before falling back again.

Now 40.5p, they value the company at £35 million. One for true believers.    

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