Epi-V continues to plug oil & gas funding gap

Epi-V, the private equity fund which backs emerging technology businesses in the upstream oil and gas services sector, has completed its second deal in a month, a £3.5 million investment in Norwegian firm i-Tec.

i-Tec is a Stavanger-based designer and manufacturer of highly advanced completion, drilling and intervention products which are used by international operators and oil and gas service companies to increase the efficiency and safety of well operations.

Established in April 2007, the business is using proven aerospace and oilfield technology to develop a suite of specialist equipment designed to reduce demands on the industry’s stretched personnel resources and requirements for capital-intensive equipment.

i-Tec has recently been awarded several contracts to supply international operators with a new generation of downhole production valves, instrumented drilling subs and its new i-plug intervention plug system.

[i-plug is a new type of wellbore intervention plug technology which isolates with high differential pressure and temperature. The system is operated on e-line / wire line with verification for setting and releasing.

The plug can on e-line be set up to 20 times in the same run and be used for; leak detection, temporary barrier and pressure testing. The Plug will be qualified to ISO 14310 VO (gastight.)

The business has also developed a number of other products including its Uninterrupted Circulation System (UCS), a valve for drill pipes which maintains circulation of mud while new drill sections are added.

UCS provides an innovative solution to drill cutting blockages, one of the greatest causes of lost time during well drilling operations and one which costs the industry billions of dollars each year.]
 
Epi-V has invested £3.5 million for a significant minority stake in i-Tec.

The deal will provide the funding and strategic guidance required to continue fully commercialising and marketing the business’ technology.

The company recently opened sales offices and service facilities in Aberdeen and Houston and will now focus on establishing these international sales channels in addition to further developing its manufacturing capability.

i-Tec is the second business Epi-V has backed in a month to emerge from Leading Edge Technology Park, a Norwegian business incubator focused on developing early stage oil and gas technology.

Last month Epi-V invested £4.5 million in Petrotools, a manufacturer of advanced coiled tubing, wireline intervention and drilling tools used in the well production process.

Epi-V was set up in 2007 to bridge the emerging funding gap for innovative new technology businesses in the oil and gas sector.

Nigel Leggett, the Epi-V partner who led the investments in i-Tec and Petrotools, said: “i-Tec blends new technology with tried and tested drilling and well intervention engineering to create a suite of products with far superior performance to incumbent solutions. 

“The huge cost-saving potential of their use in production operations across the globe is generating keen interest from major international service companies.

“Management will be drawing on Epi-V’s sector knowledge and funds to help build the business’ manufacturing, operational and marketing capabilities to ensure it fully capitalises on this high demand.”

Roger Antonsen, Technical Director at i-Tec, said: “The team has worked hard to ensure the technology delivers proven benefits and now is the ideal stage in the our development to bring on board the Epi-V team and drive market penetration across the globe.

“We’re looking forward to pooling our technical knowledge and industry understanding to ensure we build a successful firm which continues to develop innovative new technologies and solutions.”

Per Gunnar Vigre, CEO of Leading Edge Technology Park, said: “i-Tec boasts a team with unparalleled technical knowledge and a pedigree of delivering successful products for a wide range of international oilfield companies.

“With the market for its products currently growing at 18 per cent year on year, The business is at the perfect stage in its development for Epi-V’s input.

“This is the second organisation to emerge from Leading Edge Technology Park which has attracted investment from Epi-V.  The fund is unique and ideally suited to the businesses we incubate as it combines a management-focused approach to investment with an unparalleled level of experience of building successful companies in the sector.”

ENDS