PENSACOLA COULD ADVANCE ULTRA-DEEP WATER OIL & GAS TRANSPORTATION

PENSACOLA, Fla., August 31, 2007: New technology being developed by a Pensacola company could advance the way oil is moved from the Gulf of Mexico and other ultra-deepwater fields around the world. DeepGulf, Inc. has created innovative technology collectively known as J-Flex – which enables access for the first time beyond the traditional ultra deep offshore frontier of oil and gas pipeline operation.

There are only two options for transporting oil from offshore wells to shore: tankers or pipelines. The floating production and storage facilities associated with shuttle tankers are very costly, with well-known, potentially disastrous environmental impact. Pipelines require much less infrastructure, present far less risk, and have substantially less potential environmental impact. DeepGulf projects do not involve traditional surface “rigs”, and are more than 100 nautical miles offshore, ensuring the safety and beauty of the Gulf Coast’s environmental resources.

Pipelines are thus the preferred solution and are the only means of transportation used from the Gulf of Mexico’s operational deepwater fields to the US mainland, for the time being. Until now, pipelines are limited by the industry’s capability to lay large pipelines in waters deeper than 8,000 feet of water.

DeepGulf’s new J-Flex system means a large number of ultra deep wells are now accessible and no longer remain an untapped energy resource. DeepGulf’s technology makes it economical and safe to develop even the deepest parts of the Gulf of Mexico and around the world. DeepGulf’s inventors have laid some of the deepest pipelines in the world, designing and building 3 of the 7 existing J-Lay systems in the world. This experience contributed to the development of the J-Flex system. J-Flex capabilities offer critical technical and financial advantages. This will ensure that the Gulf of Mexico’s remains one of the world’s premier oil and gas basins.

“DeepGulf's ability to lay very large pipelines in ultra-deep water will reignite interest in the untapped ultra-deep leased blocks in the deepest part of the Gulf. Not only will the J-Flex system lay much bigger pipe in deeper water than our competitors, it will also lay it faster, completing projects with more economic efficiency. J-Flex innovations will spur many emerging efficiencies in the construction of ultra-deep offshore oil and gas pipelines. Deep Gulf will be at the center of that development", said Chairman Rus Howard, referring to the J-Flex ability to lay a 36" pipe in 12,000 feet of water. “DeepGulf is already fielding inquiries from major oil companies and ultra-deep field contractors in the Gulf of Mexico and other locations around the world. It is clear that ultra-deep is where the action is in offshore construction, and DeepGulf’s J-Flex technology will play an important role in the world’s energy supply”.

For more information about DeepGulf, Inc. please visit http://www.deep-gulf.com/ .

J-Flex Ultradeep Pipelay Design Permits 120 to 180 Degrees of Gimballing

PENSACOLA, FL., September 15, 2007 – The J-Flex non-articulated fixed tower flexes pipe to match the angle of incidence. The interior of this large fixed tower is built to flex pipe to accommodate 120 to 180 degrees of gimballing. While not perceived as an advantage for early pipelay systems, this revolutionary design enables a vessel to lay pipelines in rougher seas than a non-gimballing system.

The system enables re-orientation of the vessel to minimize pitch and roll- and stabilize the platform- in rough seas, independent of the direction of pipelay. This will reduce the amount of annual downtime in any pipe lay system. Other J-Flex innovations are expected to spur efficiencies in the construction of ultradeep offshore oil and gas pipelines.

“Big, deep and fast- that is how we think about our J-Flex system. Not only will it lay much bigger pipe in deeper water than our competitors, it will also lay it faster, bringing projects into service sooner. ” says Rus Howard, Chairman, DeepGulf, referring to the J-Flex ability to lay 36" pipe in 12,000 feet of water.

DeepGulf Inc. Announces Ultra-Deep Offshore Pipelay System

PENSACOLA, FL., December 21, 2006 – DeepGulf, Inc. announces its revolutionary J-Flex 3600 marine pipelay system. The ultra-deep, J-Lay system is capable of laying very large pipes in the deepest waters of the Gulf of Mexico. The J-Flex name reflects the innovative concepts deployed within the system that dramatically improve lay rates and eliminates the need to articulate the J-Lay tower. In addition, the J-Flex system has a tensioning capacity of up to 3000 tons.

“DeepGulf’s J-Flex system will enable the development of vast regions in the deepest parts of the Gulf of Mexico for oil and gas, as well as ultra-deep fields in other parts of the world,” says Rus Howard, Chairman of DeepGulf, Inc.

ABOUT DEEPGULF
DeepGulf, Inc. is in the business of building underwater pipelines and associated facilities in deep and ultra-deep offshore oil and gas production fields, primarily in the Gulf of Mexico.