XACT Downhole Telemetry Inc.

October 07, 2009 13:29 ET

XACT Downhole Telemetry Inc. Announces Industry Firsts for Acoustic Telemetry

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2009) - XACT Downhole Telemetry Inc. ("XACT") announced today the successful provision of its acoustic telemetry Measurement While Drilling ("MWD") service in air drilled horizontal gas wells for Equitable Resources Inc. ("Equitable"). 

XACT Downhole Telemetry Inc. ("XACT") announced today the successful provision of its acoustic telemetry Measurement While Drilling ("MWD") service in air drilled horizontal gas wells for Equitable Resources Inc. ("Equitable").

The XACT system is automated, solid state, and incorporates a full throughbore design. The tool can easily be operated by rig crews without the need for full-time MWD operators on location. It is capable of transmitting data from downhole to surface at over 20 baud giving it the fastest commercially available wireless update rate in the industry. The system has advantages over mud pulse systems as it does not rely on the presence of non-compressible fluid in the pipe or the use of the mud pumps to generate the signals to the surface. XACT's acoustic system is indifferent to formation type and can be used within close proximity to active coal mines or other nearby electromagnetic ("EM") telemetry systems, giving it distinct advantages over conventional EM telemetry systems. In addition, sensor nodes can be installed along the drillstring enabling the use of distributed measurements while drilling and tripping as was demonstrated on the Equitable wells.

"We are very pleased to have the support of companies such as EQT who recognize the inherent advantages of our acoustic MWD system for their applications. This has led to the very successful completion of a 4 well trial in Kentucky for EQT. These 7600 ft MD, air drilled horizontal wells, were drilled with a three node distributed acoustic MWD system (a primary tool located in the BHA plus two distributed stations in the drillstring). This is an industry first for MWD systems and marks significant advancement within the MWD industry. "said James Neff, President and CEO of XACT Downhole Telemetry.

"EQT is very excited by our use of the XACT MWD system to date. The full throughbore makes the tools very driller friendly. Also, the very fast toolface updates with auto decoding, the ability to recharge the tools onsite between wells, and the remote communications capability all translate into real benefits for EQT as we strive to drill directional wells quicker, safer and with fewer personnel on location. Additionally, the distributed measurement nodes allow the acquisition of both real-time and recorded pressure data that assists with drilling optimization. We are excited to have an alternative to EM MWD and wireline steering for systems that work in air." said Rod Vogel, Director of Drilling and Completions Engineering for EQT.

XACT Downhole Telemetry Inc. is a private Canadian company with two shareholder groups, the majority holder being Shell Technology Ventures Fund 1 B.V. (the "Fund"). The Fund, managed by Kenda Capital B.V. ("Kenda"), is a unique large scale investment fund focused at reducing the cost of energy by accelerating the development and deployment of new technologies. Kenda and the Fund have a solid energy sector expertise, fostered through a unique technology relationship with the Shell Group. Major investors in the Fund are the Royal Dutch Shell Group, Coller Capital and the Abu Dhabi Investment Authority. More information can be found on www.kendacapital.com.

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