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Redline Awarded its Largest Wireless Oilfield Contract to Date

Redline Awarded its Largest Wireless Oilfield Contract to Date

Major Oil Producer Rolls out Redline Solution in 7th Oilfield. Redline Makes Changes to Board of Directors.

Redline Communications Group Inc., a leading provider of broadband wireless solutions for machine-to-machine (M2M) communications, today announced that it has received its largest contract to date for a wireless oilfield network installation. The contract, from an existing oil and gas customer and having a value over its life of more than 10% of Redline’s 2013 revenue budget, is for a rugged high-capacity wireless private network for communications between wells, assets, drilling rigs, and their centralized control offices – to bring the field to the office and the office to the field.

This major oil company customer has already installed Redline solutions in six other oilfields in three countries. This expansion into a large oilfield in the Gulf States of the Middle East marks this customer’s largest commitment to using Redline to power their digital oilfields. Delivery of products and services associated with the contract begins immediately and management expects full deployment of the network to take between 18 and 24 months.

Eric Melka, CEO of Redline, said:

“I am excited that we have won yet another field from our customer. This is exactly how we plan to grow our business – by bringing value, delivering excellence and growing our footprint and influence within the global operations of our customers. The size of this contract validates the importance of our place in the digital oilfield.”

Redline’s advanced wireless broadband system, which leads the industry in reliability, distance, capacity and low-latency, allows personnel to securely remotely monitor and control oilfield production – including the ability to capture data in real time from thousands of M2M sensors at remote sites.

The Virtual Fiber™ network will be built using Redline’s nomadic RAS platform, RDL-3000 and eLTE-MT systems. All are rugged, reliable and secure wireless broadband equipment designed by Redline for harsh environments, in this case a remote desert with large shifting sand dunes, and engineered and built to the exacting standards required by the energy sector.

Redline’s Virtual Fiber network system offers the ability to instantly adjust to the living oilfield as a whole — from individual well production, to drilling rigs, to the pressure of a part or all of the reserve itself — based on a variety of sensor data, including pressure, temperature, and flow. This capability allows the oil company to optimally run each well or each drill, maximizing drilling efficiency and uptime while minimizing breakdowns from drilling too quickly through hard rock or other obstacles that could hamper the drilling activity. This communication ability also moves with the drilling rigs, with Redline’s RAS system delivering instant secure communication without any system realignment, even as the units move from location to location.

In unrelated news, the Company announces that Alain Rhéaume, who has been a director of the Company since October 2011, has resigned from the Redline Board of Directors and a search to replace him has been initiated.

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