Epi-V leads on £25 million deal with co-investor Energy Ventures

A compelling oilfield services transaction.

Epi-V, the leading growth capital and oil and gas services investor, is pleased to announce that it has led on a £25 million transaction, partnered with oilfield technology and service specialist investor Energy Ventures, to acquire a majority stake in oil and gas production enhancement specialists DWC. Epi-V and Energy Ventures will use their operational experience and expertise to accelerate the commercialization of DWC’s unique technology and help to globalize the business.

Epi-V sourced the deal by capitalizing on its strong Norwegian network, and over the past four months has structured and syndicated this non-auction, off-market transaction. This transaction is illustrative of Epi-V’s ability to identify innovative, off-market oil and gas technologies with strong growth potential. Epi-V has used funds from its second fund to finance its investment in DWC, while Energy Ventures has executed the investment from their fourth fund.

DWC was established in 2012 and is based just outside of Bergen in Norway. The company specialises in the removal of sand and sediments directly from the wellhead for almost any well application as an enabler to increase oil and gas production and recovery. The company provides unique, patented solids control equipment including proprietary flowback solutions for removing solids from oil and gas wells.

Solids can damage and plug oil and gas well surface equipment, leading to costly shut downs and lost production. With aging fields, the demand for solids control equipment increases significantly, and oil companies are in need of solutions that can stop the formation of solids and enable better recovery.

DWC’s system allows operators to increase production and significantly extend the life of oil and gas wells. The system is particularly compact with an exceptionally small footprint, allowing it to be installed in the most confined spaces and on platforms or rigs where space is at a premium. DWC’s system is also fully automated, allowing for remote operation.

DWC has already added three blue-chip customers who are major global operators, including Statoil and Saudi Aramco, and currently has extensive operations in the North Sea, as well as a strong presence in the Middle East. DWC fits into Epi-V’s and Energy Ventures core strategy of investing in companies that are part of the production value chain and broader OFS technology market.

Epi-V and Energy Ventures have the ability to aid DWC in creating tangible value in the investment as well as having the operational experience and ability to support the company in further commercializing the technology and expanding internationally.

DWC is a perfect fit for Epi-V’s existing portfolio, which includes Darcy, the leading sand control technology company which recently secured a deal to provide a tailored sand control completion system solution for Statoil. Guardian, the world’s leading independent designer and manufacturer of advanced ballistics and production logging technology and most recently Angus Fire, a world leading manufacturer of high powered hoses for fraccing in the US land market.

Similarly the DWC value proposition fits well with the broad and strong leading edge represented by the Energy Ventures portfolio.

"We are delighted to have completed this transaction with DWC, which has such excellent growth prospects. The company is a pioneer and leader in solids control equipment to enhance oil and gas well production and has already secured a number of the world’s largest oil companies as clients. We look forward to helping the outstanding management team further develop its products and accelerate its international expansion."

John Hutchinson, at Epi-V

"This is a great transaction for Epi-V, which illustrates our ability to source, structure and syndicate compelling off-market transactions. With strong global drivers for Oil Field Service Technology and an upturn in oil and gas markets we continue to review opportunities and look to source off-market deals that have the potential to offer investors above market returns."

Nabeel Siddiqui, at Epi-V

"Epi-V and Energy Ventures are excellent investors for us. The partners’ extensive, proven experience and expertise in creating additional value in their investments and their successful track record in commercialising innovative oil and gas services technologies will help us enhance the quality of our products and services and quicken the pace of our growth globally."

Øyvind Heradstveit, CEO at DWC

"At a time where there is considerable pressure on the oil and gas industry to deliver more cost efficient solutions and where there is a continuous drive to extract more oil and gas out of each field development, we in Energy Ventures are delighted to have been offered to partner with Epi-V to develop this exciting co-investment opportunity. We are convinced that the DWC founders and management have created a company with a unique value proposition, a company that will continue to excel and deliver tangible results to both its clients and investors."

Einar Gamman, Partner at Energy Ventures
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