Azura Launches Nautilus SS10; New Subsea Tree Lighter, Compatible With Existing Hardware.

HOUSTON -- Azura Energy Systems, Inc. (Azura) unveiled a breakthrough in interfacing subsea hardware with its Nautilus SS10 subsea tree at the 2006 Offshore Technology Conference in Houston, Texas. Azura based the hardware on successful technology with a twist: the tree can easily interface or mate with hardware manufactured by all other subsea tree manufacturers.

"This improved technology gives operators the opportunity to shift away from horizontal wet trees by offering the ability to mix components by various manufacturers. They can also purchase the Nautilus SS10 production tree and tubing hanger system for significantly less than the competition charges, and they're not locked into one supplier for the kit just to achieve compatibility," said Azura Energy Systems CEO Curtis Burton.

The Nautilus SS10 is smaller at less than 10-ft-tall, and at 14 tons, is much lighter than conventional tree packages, which can weigh in at 50 tons or more. Fabricated from stainless steel, the units are designed to endure extreme environments, including sand, and to withstand wellhead pressures up to 10,000 psi and temperatures up to 250 degrees F.

With its patented universal tubing hanger, which seals inside the well's casing, it doesn't require interfacing with other manufacturer's wellheads.

"We have researched subsea needs and found operators want to be able to interface components by various manufacturers. They want innovation, not imitation. We saw a way to do that, and the Nautilus SS10 is the answer," said Azura Offshore President Earl Broussard. "It's lighter, cheaper, safe and compatible, all you could ask for in a subsea tree."

"The systems are targeted to serve subsea wells in 300 ft to 6,000 ft of water," said Broussard. "This fits neatly with projections of over 3,600 subsea trees planned in these water depths between now and 2012, of which, 1,600 are expected by second-tier operating companies and 1,000 by the smallest operators. Of the last number, about 200 units are expected in the Gulf of Mexico in the next six years," said Broussard.

Modular by design, the Nautilus SS10 offers maximum customization capability while complying with specifications from the International Organization for Standardization, the American Petroleum Institute, and the US Minerals Management Service.

The unit requires only one installation and workover umbilical for the tree and tubing hanger. It costs about $10 million less to install than conventional subsea trees. No dedicated riser is required. It uses four running tools and is available from Azura inventory -- immediately.

The Nautilus SS10 is the brainchild of subsea tree pioneers Broussard and Burton. Broussard assisted in the development of the first ever 15,000-psi subsea tree, and Burton, who co-founded Nautilus Marine Technologies, is known in the industry for his "first of its kind" designs and innovative solutions.

Azura Energy Systems was created earlier this year through the merger of Superior Wellhead Holdings, Inc. and Nautilus Marine Technologies, Inc. and the acquisition of Gilmore Valve Co.

Azura is a new company that will build on established product lines and infrastructures of Superior and Gilmore with new products and services, including an innovative and cost-saving subsea tree that has been developed by Nautilus. It will focus on the manufacture and sale of wellheads, trees and valves for the land and subsea markets.