Artificial Lift’s RIGLESS ESP Successfully Reaches 15 Months of Operation Milestone Demonstrates Reliability of ALC’s RIGLESS ESP System

11/02/2010

HOUSTON, United States – The Artificial Lift Company Ltd. (ALC), a leader in new technologies within the artificial lift service companies, announced today that its RIGLESS Electrical Submersible Pump (ESP) system has successfully completed nine pre-emptive wire-line retrievals and redeployments at depth and has also been running successfully for more than 400 days in West Texas.

Developed in conjunction with ConocoPhillips, the Artificial Lift RIGLESS ESP is a groundbreaking artificial lift solution for the oil and gas industry that significantly reduces ESP intervention costs, since the ESP work-overs can be performed without requiring a rig. It was approved for commercialization in October 2009, and it is scheduled for more installations in North America and the Middle East in the fourth quarter of 2010.

“Achieving more than fifteen months run time and nine successful retrievals and re-deployments at depth is a very important milestone for the ALC RIGLESS ESP System that will enhance customer confidence in both the new permanent magnet motor and wet connector technology that ALC is implementing and will further strengthen the track record of reliable and durable system installations worldwide,” said ALC Vice President of Operations Peter Moulsdale.

During the last year and a half, the technology was tested by ConocoPhillips in a harsh well environment. Despite weather-related power outages and process trips, the system accumulated more than 400 run days.

“The testing phase allowed us to identify and improve the installation’s functionality, which resulted in a flawless execution and three successive break and makes of the Rigless ESP,” said John Patterson, engineering fellow at ConocoPhillips. “We are pleased with the functionality and reliability of the system, and we are now ready to move forward with two installations in Alaska.”

ALC President Geoff Kimber-Smith said, “ALC is already seeing an increased market demand for cost-effective ESP technologies with lower intervention costs. The successful completion of this landmark project has created global interest from both International Oil Companies and National Oil Companies keen to maximize the up time of their ESP wells and reduced operating costs.”