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Redline Communications Group Inc
Symbol RDL
Shares Issued 37,558,857
Close 2012-04-09 C$ 1.25
Market Cap C$ 46,948,571
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Redline to expand wireless coverage of PDO wells

2012-04-09 08:06 ET - News Release

Mr. Eric Melka reports

REDLINE COMMUNICATIONS ANNOUNCES THE MAJOR EXPANSION OF ITS NETWORK AT A SHELL OIL JOINT VENTURE OIL FIELD

Redline Communications Group Inc. has launched a larger, second phase of a major wireless project for Shell Oil joint venture Petroleum Development Oman LLC. This expansion follows the successful deployment of a wireless infrastructure network supporting over 2,000 wells.

In November, 2010, Redline announced that PDO had selected Redline to supply a wireless communications infrastructure to meet its goal of having full bidirectional communication and integration between the corporate layer and the field layers for its oil and gas fields. Over 2,000 of the 5,000 oil wells in its Oman location are now connected wirelessly using Redline equipment to a centralized site where they are monitored and managed remotely in real time, eliminating the need to have workers drive from well to well to collect critical operating information and make changes to optimize the system. PDO is now expanding wireless coverage to all wells.

Redline's rugged RDL-3000 and AN-80i broadband radios, powered by SmartLINK software, are the cornerstone of the PDO system. They operate in point-to-multipoint configurations, allowing many units in the field to communicate over long distances to a smaller number of base stations, which improves the cost-effectiveness of the system. The entire field is surrounded by a ring of Redline RDL-5000 radios delivering high-capacity, reliable, long-distance backhaul. The Redline technology has extremely large capacity which supports the many different types of machines communicating simultaneously over the wireless network. SCADA systems, RTU, video surveillance cameras and Wi-Fi hotspots are all connected over the wide-area Redline network, with the more important communications such as control over the well heads getting priority treatment through Redline's patented and patent-pending quality-of-service technology.

Data and information now flow seamlessly between more than 2,000 oil wells and the central control location, providing a full picture of what is happening in the field and how it is impacting the finances of the oil field operator. In addition to connecting well heads, mobile rigs and semimobile units are also now wirelessly connected using Redline products, allowing access to corporate systems regardless of location.

Redline products are especially well suited to the machine-to-machine needs of the oil and gas industry because they are powerful and flexible enough to accommodate the many different types and priorities of communications in an oil field and they operate reliably in even the most extreme environments. Because the PDO oil field covers an area of 28,000 square miles of desert, rugged, resilient and reliable equipment is critical.

"The Redline products have delivered on their promise of highly reliable performance in a challenging environment," said Saeed Al Shidhani, PDO's head of information-technology projects. "We have seen immediate and significant improvements in performance and data throughput as a result of the wireless digital connectivity delivered by Redline and we plan to more than double the number of wells that are included in this system in the coming months."

"We are pleased to see this project grow and we expect it to continue to grow even more," said Eric Melka, Redline's chief executive officer. "It's confirmation that we have delivered real and measurable improvements to Petroleum Development Oman's oil field operation, and we are committed to ongoing innovation to be a catalyst for more effective ways of managing oil and gas production. This segment has become the fastest growing of our business and we attribute this growth to our partnerships and our unique, rugged M2M technology that we have designed specifically for the energy sector."

Redline has made a major commitment to the oil and gas industry worldwide as well as in the Middle East region. The company has recently opened an office in Dubai and has increased staffing in the region to support its growing oil and gas customers.

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