Trading Update

RNS Number : 3080C
Corac Group Plc
11 November 2009
For Immediate Release

Corac Group plc ("Corac" or the "Company")

Trading Update

Corac announces a trading update following a review and discussions with Eni SpA ("Eni"). Despite achieving a number of key milestones in the year, necessary development and design changes specific to this project have arisen and the Company is now putting a revised timetable and plan in place for the field trial to go live in H2 2010, as opposed to Q4 2009 as previously reported.

Corac is pleased to announce that the Company is in discussions regarding contract terms with two other potential field trial partners to use the Downhole Gas Compression ("DGC") technology, one in the USA and the other in the Middle East. Both trials could provide a significant opportunity and greater breadth of application of Corac technology to the gas market.

Phil Cartmell, Chief Executive said:

"I am obviously disappointed that Corac is unable to start field trials in 2009 as planned, but pleased that the Company is now putting in place a revised plan to deliver to Eni. I am delighted that we are in negotiations regarding contract terms on two more projects relating to the DGC technology. 

The Company is now entering into a new phase to manage and improve delivery of these important projects and will implement the right approach across the business to achieve its goals.

By combining the existing expertise within the team with a more dynamic commercial approach, Corac has the opportunity to deliver its innovative technology to the gas extraction industry as well as ensuring we invest to realise the value for all stakeholders."

For further information please contact:

Corac Group plc
Professor Gerry Musgrave, Executive Chairman
Phil Cartmell, CEO
Mark Crawford, Finance & Commercial Director 01895 813463

FinnCap
Geoff Nash, Corporate Finance
Charlotte Stranner, Corporate Finance Brian Patient, Sales 020 7600 1658

Buchanan Communications
Richard Darby Ben Romney 020 7466 5000