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Gold/Mining/Energy : Techcorp Industries Inc. ( TCA - Alberta Stock Exchange ) -- Ignore unavailable to you. Want to Upgrade?

To: Pierre J. LeBel who wrote (5)	6/9/1998 8:57:00 AM
From: Jason Krueger	Respond to of 14

May 27, 1998 TECHCORP FILES PATENTS FOR NEW UNDERBALANCED TECHNIQUE, APPOINTS AUTHORIZED AGENTS IN CANADA & UNITED STATES Mr. Arnold Wong, President, today announced: Patent applications have been successfully filed by the Company for a method and apparatus for an underbalanced drilling technique which will offer operators a significant cost and time saving while dramatically improving safety during underbalanced drilling operations. Traditional means of well control during conventional drilling rely upon exerting a hydrostatic head using a column of fluid to act against pressures exerted by the reservoir. With the advent of Underbalanced Drilling this downhole safety practice is actually eliminated, forcing the operator to rely on the blowout preventers and flow control equipment at surface to control the well. With the utilization of Techcorp's new downhole Deployment Valve, the surface equipment can now be isolated in the event of a problem. Traditionally, the well continues to flow through the surface flow control equipment while the pipe is being pulled or deployed. Now the flow control equipment at surface that was being continually exposed to potentially highly erosive conditions is only used during the actual drilling of the well, not during the tripping of the pipe in or out of the well. Techcorp's new technique of using a downhole deployment valve gives the operator an additional safety system downhole. Traditionally during underbalanced operations, the well must be allowed to flow during the operation resulting in a flowing or shut-in pressure on the surface annulus. With any significant pressures, it has been necessary to either use a snubbing unit or kill the well, to avoid a pipe light situation should it be necessary to trip the string during the operation or once the well has been drilled to total depth (TD). When utilizing a snubbing unit, the operator not only has to consider the actual cost of the snubbing operation, but also rig up and rig down time of the snubbing unit in terms of overall underbalanced drilling operation day rate costs. Onshore, these costs inclusive of the solid recovery systems, compression systems, nitrogen systems, directional services and rig costs, often times are in excess of $50,000 per day. Hence a simple trip of the drill string may end up costing the operator well in excess of $50,000. If the unforeseen should occur and multiple trips become necessary, overall costs can escalate rapidly. Due to the increased cost potential, several operators have been forced to kill the well just in order to trip the drill string. The cost of doing this cannot be determined as when the well is killed, the formation damage that the whole underbalanced drilling operation is trying to avoid is caused, and the subsequent well production compromised. Techcorp's new underbalanced drilling Deployment Valve will relieve the operator of the escalating costs of having to snub in and out of the well, and the decision to have to kill the well to trip the drill string. The Deployment Valve will be run as an integral part of the casing program, allowing full bore passage for the drill bit when in the open position. When it becomes necessary to trip the drill string, the string will be tripped out until the bit is above the Deployment Valve at which time the Deployment Valve will be closed and the annulus above the Deployment Valve bled off. At this time, the drill string can be tripped out of the well without the use of a snubbing unit and at conventional tripping speeds, thus reducing rig time requirements and providing improved personnel safety. The drill string can then be tripped back into the well until the bit is just above the Deployment Valve, at which time the Deployment Valve can be opened and the drill string run in to continue drilling operations. Several methods of completing the well and operating the Deployment Valve are currently being developed to allow well design flexibility and ease of integration of the Deployment Valve. Techcorp plans to market the Deployment Valve directly to the operators so that the up front costs of tripping the string are known to the operator when planning the operation. It is estimated that savings from the system could easily be in excess of $75,000 per well. Techcorp also believes that the Deployment Valve will have applications during completion, re-completion, perforating and coiled tubing operations. Techcorp also announced today that Leader Energy Services, Inc. (USA), and its Canadian subsidiary Leader Energy Services Inc. (Canada) have been appointed authorized agents for Techcorp's complete product line. As authorized agents, Leader Energy Services will market and also act as Techcorp's sales and service outlets both in Canada and the USA. Techcorp will continue to establish agency agreements with organizations in other countries to further the sales of products in the energy industry. Techcorp Industries Inc. is a research and development company involved in the design and manufacture of proprietary products for the energy sector. As an original equipment manufacturer (OEM), Techcorp is actively involved in the sale and rental of this equipment. In addition, Techcorp also pursues transfer of technology agreements and the licensing of their design files. Techcorp's dedication to quality and its corporate philosophy to develop technical, innovative products will continue to enhance its future. "The Alberta Stock Exchange has neither approved or disapproved of this information."

To: Pierre J. LeBel who wrote (5)	6/24/1998 5:32:00 PM
From: Jason Krueger	Respond to of 14

FIRST QUARTER FINANCIAL RESULTS Released June 24, 1998 April 30, 1998 Revenue $1,050,000 Gross Margin 587,944 Net Earnings (Loss) 349,211 Earnings Per Share (basic) $0.03 Cash Flow From Operations 473,594 Cash Flow From Operations Per Share (basic) $0.04 Weighted Average Shares Outstanding 13,132,500 Mr. Arnold Wong, President of Techcorp Industries Inc. today announced financial results for the first quarter ended April 30, 1998. These results represent Techcorp's first equipment sales. The Company generated revenue of $1,050,000, net earnings of $349,000 ($0.03 per share) and cash flow of $473,000 ($0.04 per share). Techcorp incurred general and administrative expenses of $109,000, with amortization costs of $124,000. During the quarter, Techcorp delivered three RPM System 3000TM Rotating Blowout Preventers to Alpine Oil Services Corporation. These are the first of six units to be delivered to Alpine by the end of May, and will result in an additional $1,050,000 of revenue. Leader Energy Services, Inc. acted as authorized agent for this sale. Techcorp commenced an aggressive marketing campaign at the start of its 1999 fiscal year. In addition, the Company was present at two international oil shows, OTC'98 in Houston, Texas, and the 1998 National Petroleum Show in Calgary, Alberta. Approximately 80,000 delegates attended these two oil shows, and the Company has received numerous inquiries as a result of its presence. During the quarter, management finalized plans to design the Techcorp RPM System 1000TM Diverter Head. This new system features a lightweight, compact design and will be used in low pressure underbalanced and conventional drilling applications. The Company will finalize engineering files for the Techcorp RPM System 5000TM during the third quarter, and expects to construct a prototype system in the fourth quarter. This system will be utilized in high pressure environments offshore. The design of these systems will allow oil and gas companies to substantially decrease present costs of services, while at the same time dramatically improve safety and reduce rig time. Techcorp is also developing a new line of External Casing Packers (ECP). These ECP's are frequently used in both conventional and underbalanced completion programs for zonal isolation and casing annulus segregation. Engineering of the ECP product line is complete, and a production run will be completed this year. This product line will increase Techcorp's market penetration and revenues in the underbalanced well control market. Techcorp Industries Inc. is a research and development company involved in the design and manufacture of proprietary products for the energy sector. As an original equipment manufacturer (OEM), Techcorp is actively involved in the sale and rental of this equipment through authorized agents. In addition, Techcorp also pursues transfer of technology agreements and the licensing of their design files. Techcorp's dedication to quality and its corporate philosophy to develop technical, innovative products will continue to enhance its future success. Techcorp currently offers, or will be offering shortly, the following products: Rotating Blowout Preventer (RPM System 3000TM): The most compact Rotating BOP and automated Control System available. With a static working pressure of 3,000 psi, the RPM System 3000TM provides significant operational and safety advantages over conventional rotating control heads and other rotating BOP systems. Rotating Blowout Preventer (RPM System 5000TM): A high pressure Rotating BOP for offshore applications. A prototype system will be tested during the fourth quarter. Rotating Blowout Preventer (RPM System 1000TM): A lightweight, compact Rotating BOP used in low pressure underbalanced and conventional drilling applications will be introduced in the fourth quarter. Electronic Gauge Carrier System: The world's smallest, lightest and most versatile electronic gauge carrier. Providing multi-service capabilities, the Gauge Carrier houses two miniature electronic pressure and temperature memory gauges that can be set up to monitor either tubing or annulus pressures. Current applications include open and cased hole drill stem testing, underbalanced drilling operations, and cased hole tubing conveyed perforating (TCP). Underbalanced Drilling Deployment Valve (UBD ValveTM): Relieves the well operator of having to snub in and out of the well, thereby reducing rig time and providing improved personnel safety; and allowing surface equipment to be isolated in the event of a problem. Arrangements have been made with three potential customers to use the UBD ValveTM during underbalanced drilling programs. External Casing Packers (ECP): Used in both conventional and underbalanced completion programs for zonal isolation and casing annulus segregation. Engineering of the ECP product line is complete, and a production run will be completed this year. "The Alberta Stock Exchange has neither approved or disapproved of this information."