Benchmark signs deal to use radial drilling technology in Indonesia and Malaysia

Canadian junior oil and gas exploration firm Benchmark Energy announced Wednesday it had entered into a participation Agreement with Radial Drilling Services Inc.(RDS) of Houston, in which Benchmark would contribute in the manufacturing of a radial unit in exchange for a priority right to use the technology in Indonesia and Malaysia.

To date, RDS' radial drilling technology has been applied to over 230 wells, in the US, Canada, the Former Soviet Union, and Latin America, with an average increase of 2.6 times per well.

RDS' proprietary radial drilling technology is ideally-suited for the rehabilitation and development of marginal oil & gas fields, including a number of opportunities being investigated by Benchmark in Indonesia and Malaysia.

Under the deal Benchmark will partly fund development and delivery costs of a radial drilling unit. The fund paid will be treated as an advance towards radial drilling services to be completed by RDS on marginal field interests acquired or earned by Benchmark.(alex)