Koil Energy Solutions Inc. (KLNG)

[JoeSmith]

from Feb. pr

Deep Down Announces $2 Million in Contracts for Innovative Solutions
Feb 15, 2008 9:52:00 AM
View Additional ProfilesHOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW) announced today that it has been awarded contracts to develop and manufacture unique, innovative solutions for two separate major offshore oil and gas operators. Deep Down is currently designing approximately $1.5 million worth of innovative subsea installation equipment to address its clients' critical issues over the next several months.

The first unique innovation is a Subsea Accumulator Module (SAM), consisting of Subsea Deployment Baskets (SDB) with attached accumulators, a built-in steel flying lead, a J-plate, and a Remote Operated Vehicle (ROV) panel. Several of these units will be shipped. The SAM has been designed so that it may be transported without a wide load permit and set on a vessel. Once on the vessel, the wings of the SDB can be retracted, and the system will be pre-charged with pressurized control fluid. Thereafter, the SDB can be simply lifted off the deck of the vessel and placed on the seabed. Once on the ocean floor, the vessel will lift and pull out the built-in steel flying lead from the SAM with its own down-line cable. A ROV will be used to guide the steel flying lead from the SAM and connect it to the Hydraulic Distribution Manifold (HDM). The ROV will be further deployed to open valves, wherein the SAM will provide plug-n-play subsea accumulation capabilities to augment the existing subsea distribution control system with localized volume and pressure control features. The SAM will also serve as an anode skid, designed to carry additional anodes. It will be grounded to the structure in order to provide additional cathodic protection to the HDM. The entire SAM can also be easily retrieved and serviced on deck, further improving the ability to retrieve subsea hardware.

The second innovation involves the development and manufacture of a unique deployment system to install very fragile, small-diameter fiber optic cables in deepwater environments. This deployment system will greatly reduce the amount of stress on the fiber optic cable during installation. The particular project involves the installation of approximately eight miles of fiber optic cable in 6000 feet of water. The specialized equipment can be placed on an installation contractor's vessel with minimal effort and provide a safe, quick method of efficient deployment.

"It is gratifying that major oil and gas operators, installation contractors, and control suppliers continue to contact Deep Down to develop innovative solutions for critical subsea issues and applications. It is a testament to our entire staff, including our engineers, fabricators, and installation crews. One of our key strengths is our ability to take an idea from a sketch on a piece of paper to a full 3-D solid works model, through fabrication, and a successful first-time installation in a relatively short period of time, often within 90 days," said Ronald E. Smith, Deep Down's President & CEO.

Deep Down recently provided a unique solution for critical issues confronting a third oil and gas operator. The Company installed specially designed, fully autonomous umbilical jacking system to lift up an existing steel tube umbilical on the ocean floor, which was then re-terminated. The solution and procedures provided by Deep Down allowed the operator to bring the well back on line in a fraction of the time that was otherwise envisioned. Another specialized solutions team is scheduled to depart offshore with a recently developed kit to clean a deep water J-tube, with open segments in the J-tube. These two projects add another approximately $500,000 in revenue.