XACT Downhole Telemetry Inc.

April 30, 2010 12:41 ET

XACT Downhole Telemetry Inc. Announces Successful Application of Acoustic MWD Services for Air Hammer Drilling

CALGARY, ALBERTA--(Marketwire - April 30, 2010) - XACT Downhole Telemetry Inc. ("XACT") announced today the successful provision of its acoustic telemetry Measurement While Drilling ("MWD") service in air drilled wells with air hammers provide by Allis-Chalmers in the USA.

The XACT system is automated, solid state, and incorporates a full through-bore 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. Additionally, the collar based tool design has now been proven to handle the high shock environment associated with hammer drilling operations with air.

"We are very pleased to have the support of companies such as Allis-Chalmers who are able to realize the value of our acoustic MWD system for their applications. Over the course of our initial 18 well program it was extremely satisfying to confirm the reliability of our tools when run behind a shock sub and a 9" air hammer capable of generating up to 400,000 lbs of recoil shock" said James Neff, President and CEO of XACT Downhole Telemetry.

"Allis-Chalmers is very excited by the use of the XACT MWD system behind our air hammers. The collar based tool design is very compatible with air hammer drilling applications and has out-performed all other commercial MWD systems used in this application to date" said Roger Johns, Director of Drilling Technology, Allis-Chalmers.

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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