Koil Energy Solutions Inc. (KLNG)

[fazoolius]

Looking back at a pr from a month ago.

Deep Down: HDUs Played Major Role in 2007
Deep Down
Friday, January 11, 2008

http://www.subseaiq.com/News/Articles/200801/Deep_Down_HDUs_Played_Major_Role_in__7971.aspx

Deep Down, Inc. said that its proprietary Horizontal Drive Units (HDU) have played a major role and had a significant impact on offshore projects for various customers in 2007.

The company said that its HDUs were used in the deployment and recovery of certain lighter-duty, flexible and not-so-flexible components of the subsea distribution system , which connects offshore platforms to oil and gas wells on the ocean floor.

First introduced in 1998, the HDU was developed by Deep Down as an alternative to industry-accepted vertical drive units to specifically enable substantially quicker, safer and more cost-effective installations of steel flying leads and specialty cables.

The HDU eliminates the undesirable, and potentially hazardous, uneven tension experienced by steel flying leads and specialty cables during deployment and retrieval operations, as well as spooling, with vertical drive units. This uneven tension can often lead to balancing and other problems due to alternative cycles of slackening and tightening due to variability in the centrifugal forces that are experienced through a vertical drive unit.

Deep Down said that the HDU also ensures quicker and safer non-permitted transportation of its proprietary Rapid Deployment Cartridges (RDCs), Subsea Deployment Baskets (SDBs) and carousels because these items can be placed on the HDU adapters with loads kept very low to the ground. After exceeding the expectations of its original design during several key installation projects over the past several years, the benefits of the HDU are receiving increasing attention in an accelerated fashion in the offshore market.

Ron Smith, Deep Down CEO, said:

"Our Horizontal Drive Units have made a significant contribution on subsea projects throughout the Gulf of Mexico. Installation contractors expend large amounts of capital to outfit their vessels with dedicated, high-tension deployment and recovery equipment required to put major systems in deep water. Ease of deployment, floor-space and safety are key considerations for these contactors. Our proprietary RDCs, SDBs and carousels can each be independently attached to the HDU. These additional components, including the HDU, can be stacked, thereby, saving valuable deck space on installation vessels."

During 2007, the HDUs were used to perform deployment and recovery functions on the following projects:

* Oceaneering Flying leads in Panama City, Fla.
* Chevron Agbami flying leads for Subsea 7
* Noble Energy Lost Ark 2 Composite Jumper for Saipem
* BP King Pump Electrical Power flying lead and steel flying leads for Saipem
* Noble Energy Lost Ark 1 flexible flowline Jumper for Saipem
* Mariner Bass Lite Steel Flying leads for Technip
* Independence Hub Steel Flying leads for Subsea 7 and for Anadarko
* BP Thunder Horse Steel flying lead, Acoustic Doupler Current Profiler (ADCP), and Riser Monitoring System (RMS)
* Chevron Agbami Flexible Flowline jumpers for FMC
* Bluewater Gomez Steel flying leads for Drill Quip
* New Field Steel flying lead



Looks like they are already involved in a number of projects involving Flying Steel Leads. Hopefully we might start to see some pull through for the new LSFL's from the HDU business.

-faz