Red Spider Secures Contracts in the Gulf of Mexico worth a Six Figure Sum

Red Spider, the Remote Open Close Technology specialist delivering major savings and reduced risk to the oil and gas industry, has successfully secured contracts valued at a total of $300,000 (over £190,000) in the Gulf of Mexico.

The work will be undertaken for four of the major operators in the region, three of which are new clients to Red Spider.

The work will involve use of both the original 3.25" eRED and the newer 2.25" slimmed-down version. The new product has been specially developed to meet the requirements of operators using smaller tubing, which is more commonly used in the Gulf of Mexico.

As well as having a reduced diameter, the temperature rating has been increased enabling the 2.25" tool to be used in wells up to 140°C, essential due to temperatures rising significantly in deeper wells.

John O' Hara, Red Spider Sales Manager - North America, said: "After the extensive interest we received from companies operating in the Gulf of Mexico at the SPE Deepwater Drilling and Completions Conference in Texas in June, we effectively modified our eRED product to ensure we were responding to demand from the market.

"We are delighted with the success we have already experienced with the technology and the work we have secured in the region. The 2.25" eRED performed perfectly on its first projects in the UK and in Brunei and we look forward to the positive results it will produce for our clients in the upcoming work in the Gulf of Mexico.

"This success is testament to the rigorous eight month development program Red Spider has undertaken with the new technology. This included qualifications as per ISO 28781 standard and has resulted in a robust design that we are confident will emulate the success of the field proven 3.25" eRED."

The eRED was Red Spider's first tool to use its patented Remote Open Close Technology. It is a downhole computer-controlled valve that can be opened and closed multiple times by remote control without the need for any intervention.

It has now been successfully used over 100 times by over 20 oil companies world-wide, resulting in significant risk reduction and maximising production time by removing wireline runs from operations. The eRED has allowed major operators to save $500,000 (more than £330,000) during a single subsea completion operation; typically reducing slickline runs from eight to one. In deepwater workover operations, savings of up to 36 hours and $750,000 (£500,000) have also been recorded in a single job, as well as major reductions in risk. The technology is on its way to becoming the industry standard solution for making well completion and workover operations much more efficient.