Expro Secures Integrated Services Geothermal Contract for Deutsche ErdWärme’s Graben-Neudorf Project

Rhea-AI Summary

Expro (NYSE: XPRO) has secured a groundbreaking contract to provide integrated services for a geothermal project in the Upper Rhine Graben area of Germany. This eight-well contract, for Deutsche ErdWärme, includes well construction services and a high-rate surface well test system. The partnership commenced in June 2022 and holds future extension potential. Expro aims to reduce greenhouse gas emissions and transition toward a sustainable future, reflected in its Net Zero goals by 2050 and a 50% carbon intensity reduction by 2030.

Positive

• Secured an eight-well contract for a significant geothermal project in Germany.
• Potential for long-term extension beyond the initial contract.
• Commitment to sustainability with Net Zero goals by 2050 and 50% carbon intensity reduction by 2030.
• Strengthening position in the growing geothermal sector.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Leading energy services provider Expro (NYSE: XPRO) has secured a contract for its first integrated services package to support a high-profile geothermal project in the Upper Rhine Graben area of SW-Germany.

Expro's first integrated services package to support a high-profile geothermal power plant in Germany. (Graphic: Business Wire)

A consortium formed by Ed. Züblin AG and Huisman Geo B.V, drilling and geothermal energy specialists, have commissioned Expro to deliver an integrated well services program for a new geothermal power plant in the Upper Rhine valley. This eight well contract for Germany’s largest private developer of geothermal energy plants includes well construction services and a bespoke high-rate surface well test system.

The contract which began in June 2022 has the potential for a long-term extension to follow the eight-well drilling and testing campaign of Deutsche ErdWärme (DEW) across four power plants that is that covered by the initially contracted work scope.

As part of its long-term strategy, Expro plans to continue to invest in transforming its business portfolio and reducing its greenhouse gas emissions. The Company, which recently published its environmental, social and governance (ESG) review, has also a stated aim of achieving Net Zero by 2050 with a 50% reduction in carbon intensity by 2030.

A member of the International Geothermal Association and the European Geothermal Energy Council, Expro has been supporting geothermal well services projects since 1986 and is recognized for its cost-effective, innovative solutions. This latest contract builds on the Company’s strategic desire to help customers unlock new sources of cleaner, low-carbon energy and enhance its support of the global geothermal market.

Steve Russell, Expro’s Chief Technology Officer commented:

“This is a significant award for Expro and strengthens our position as an integrated services provider to the growing and increasingly important geothermal sector. Expro has been delivering discrete services to the geothermal market for many years. This project provides Expro with an opportunity to demonstrate its ability to deliver a bespoke, project-specific well services package for our customers’ particular requirements. This contract also demonstrates our enhanced offering and capabilities in the geothermal sector and our commitment to a more sustainable and lower carbon future.”

Sebastian Homuth, Well Operation Manager, Deutsche ErdWärme, said:

“We are delighted to see well established oil and gas service companies like Expro showing real interest in the geothermal sector. The customer-oriented approach and dedicated back-office engineering expertise in conjunction with the broad experience in the execution of all kinds of well testing operations is exactly what our industry and DEW is looking for.”

Martin Geissler, Project Manager, JV Drilling Campaign Rheingraben, Ed. Züblin AG – Huisman Geo B.V, commented:

“We are very happy to have found a professional and well-established partner in Expro for the execution of this exciting geothermal project. Expro's many years of experience, solution-oriented approach and great commitment were evident from the first meeting and are a great asset for the project. We are very much looking forward to a successful co-operation.”

Ingrid Huldal, Expro’s Director, Portfolio Advancement, commented:

"We are very pleased to have been awarded this significant contract and look forward to collaborating with both Deutsche ErdWärme and the JV Drilling Campaign Rheingraben, Ed. Züblin AG – Huisman Geo B.V to provide high calibre well services and drilling support for their geothermal project. This is a key strategic opportunity for Expro as we look to expand our current portfolio and develop a more sustainable business. The geothermal industry will play an important role in the provision of clean energy security for our future. We are committed to helping our clients achieve their sustainability goals and reducing our own environmental impact.”

Expro

Working for clients across the well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity solutions.

With roots dating to 1938, Expro has approximately 7,200 employees and provides services and solutions to leading exploration and production companies in both onshore and offshore environments in approximately 60 countries.

Today, Expro’s wells expertise and range of well intervention, integrity and flow measurement offerings are transferable to the low carbon and renewable energy industry, offering a low-carbon line of business adjacent to its oil and gas portfolio. As the energy industry seeks to address the challenges of tomorrow, Expro believes it is well positioned to play a leading role in enabling its clients to achieve their carbon reduction goals in support of the energy transition.

For more information, please visit: expro.com and connect with Expro on Twitter @ExproGroup and LinkedIn @Expro.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made from time to time by representatives of the Company, may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, the Company’s environmental, social and governance goals, targets and initiatives, and the future growth of the geothermal energy market, and are indicated by words or phrases such as "anticipate," "outlook," "estimate," "expect," "project," "believe," "envision," "goal," "target," "can," "will," and similar words or phrases. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to certain risks and uncertainties, many of which are unforeseeable and beyond our control. The factors that could cause actual results, performance or achievements to materially differ include, among others the risk factors identified in the Company’s Annual Report on Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, historical practice, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220720005352/en/

MediaRelations@expro.com

Source: EXPRO Group

FAQ

What contract has Expro secured in Germany?

Expro has secured a contract to provide integrated well services for a geothermal project in the Upper Rhine Graben area of Germany.

When did the contract for the geothermal project begin?

The contract began in June 2022.

What are Expro's goals for greenhouse gas emissions reduction?

Expro aims to achieve Net Zero by 2050 and a 50% reduction in carbon intensity by 2030.

How many wells are involved in Expro's new geothermal project?

The contract involves eight wells.

Which company is Expro collaborating with on the geothermal project?

Expro is collaborating with Deutsche ErdWärme and a consortium including Ed. Züblin AG and Huisman Geo B.V.