Coretrack & APS Technology Announce Agreement for Purchase and Integration of MWD Systems

Wallingford, CT – October 9, 2008 – Coretrack Limited ("Coretrack;" ASX: CKK) and U.S.-based APS Technology, Inc. ("APS") today announced the signing of an agreement for the purchase of a modified APS SureShot™ Measurement While Drilling (MWD) System, to be integrated with Coretrack's Measurement While Coring (MWC™) technology.

APS designs, develops and manufactures products that operate reliably in environments where shock, vibration, high temperature and pressure, fluid erosion and corrosion are of a concern. APS is an oil and gas industry resource for electromechanical hardware and sensor technology used in harsh environments, delivering field performance and design confidence worldwide. APS's customers include Baker Hughes, Schlumberger, Halliburton and Weatherford. APS has sold over 500 MWD pulsers and over 100 MWD kits to many service companies in the oil and gas industry.

"The MWD mud pulser and electronics provide Coretrack with a crucial component of our real-time coring data delivery system", commented Mr Nanne van 't Riet, Managing Director and Chief Executive Officer of Coretrack. "Following a comprehensive due diligence process, we are very pleased to have finalised a purchase contract with APS. This purchase signals the commencement of a joint integration project, linking the APS mud pulser to the Coretrack core measurement technology."

"APS is pleased to sign this agreement with Coretrack" said William Turner, founder and President of APS. "We are excited about working with Coretrack to help them complete a system that offers the industry core retrieval data in real time. We hope this will be the beginning of an ongoing commercial relationship between our respective companies."

Coretrack's revolutionary MWC technology – the Core Level Recorder with telemetry System (CLRS) – can be broken down into three distinct sub-systems:

  1. Core Level Recorder (CLR) – Complete & Commercially available
  2. Core Barrel Telemetry System – Approx. 75% complete
  3. Surface Telemetry System – Approx. 90% complete

Coretrack has recently made several ASX announcements regarding the successful bench-testing of their Core Barrel Telemetry System; designed to transmit CLR-recorded coring data to the top of the core barrel.

The purchase of the APS system will allow the integration of Coretrack's Core Barrel Telemetry with the APS system to commence. This development will bring the integrated, full system another major step closer.

Because of this purchase and successful telemetry testing (previously announced), Coretrack has substantially reduced R&D-related risk in the project.

The Company remains confident of having the first complete real-time coring solution ready for well testing near the end of 2008.


MWC™ – Measuring While Coring

Coretrack Limited is an ASX listed company which provides leading technological solutions to the global oil & gas industry. Coretrack's primary focus since listing has been the commercialisation of its revolutionary and patented technology, the Core Level Recorder System.

The Core Level Recorder (CLR) is a measuring and recording device that is placed inside the inner core barrel. During coring the unit rests upon the column of core that is entering the barrel and records the amount of core captured. This data collected will inform geologists from what depths core was captured and conversely, where core was lost, if a full recovery was not obtained. Coretrack has run the CLR (without the telemetry to surface) with a number of major operators and the tool is market ready now.

Coretrack has designed and is in the process of completing development of the Core Level Recorder System (CLR with real-time telemetry) – a coring tool that will enable an explicit measurement of the acquisition of a core sample during a coring operation. The availability of real time data on the rig floor will ensure substantial cost savings to the exploration and production companies.

APS Technology, Inc. specializes in the design, development and manufacture of electromechanical, instrumentation, and sensor designs for the oilfield and other harsh environments. APS has deep engineering expertise in oilfield drilling and sensor equipment, shock and vibration isolation designs, and stress analysis for static and rotating conditions. APS's customers include all of the major integrated multinational oilfield service companies, independent directional drilling companies, MWD service companies and oilfield companies engaged in non-drilling related services. APS also provides engineering analysis, product development services, and proprietary products to customers worldwide.

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