£3.5m investment boost for north-east oil and gas services company
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North-east oil and gas services firm isol8 has received a £3.5 million investment from BGF to support its long-term growth plans.
This includes increasing its staff by 50 per cent over the next 12 months.
The investment from BGF will also be used to develop Aberdeen-based isol8’s zero-emissions product portfolio and expand its services into the wellbore construction sector.
Setting a new global standard in zero emission wellbore barriers, isol8’s technology supports the UK Government’s ambition to drive down global methane and carbon dioxide emissions.
It is estimated that successful deployment of isol8’s technology could unlock savings of between £1.5 million to £7 million for platform and subsea wells abandonments. This could translate to savings of between £2 billion to £5 billion in North Sea well decommissioning costs.
isol8 is the only company in the world known to use underwater soldering to create metallurgically bonded alloy barriers to seal off oil and gas wells.
The firm designs, develops and deploys its fusion barriers, providing a longer lasting and more environmentally friendly solution to traditional cement-based methods.
CEO of isol8 Andrew Loudon said: “Decommissioning is now a huge focus in the North Sea and we’re partnering with clients to help them significantly reduce their asset retirement costs.
“Now, with the support of BGF, we are in a strong position to broaden our zero-emission product portfolio and accelerate the production of new products, including our casing annulus packers and tubing packers for well construction.
“The BGF team fully understands and supports our vision, and their expertise and business knowledge will be invaluable as we embark on this next chapter together.”
Founded in Aberdeen in 2017, isol8’s UK team of seven boasts 170 years of oilfield experience, including 61 years of downhole tool design expertise. isol8’s research and development team of four are based in Port Townsend in Washington State, USA.
As part of the transaction, BGF investor Richard Pugh will join the board of isol8 as an investor director, alongside newly appointed independent director Nigel Avern.
Mr Avern is the former CEO of Peak Well Systems, nurturing the business from a small start-up to an international company with market leading positions in well intervention tooling and bridge plugs.
He led the successful trade sale of Peak to Schlumberger. Formerly, he spent 18 years with The Expro Group working in range of marketing, technical and general management roles.
Richard Pugh, an investor in BGF’s Aberdeen office, said: “isol8 has huge potential to use its cutting-edge Fusion technology to generate very large savings in plug and abandonment and intervention operations – both of which are markets where we expect long-term growth and where Aberdeen continues to have world-leading expertise.
“At the same time, by ensuring a gas-tight seal, Fusion provides the industry with a much lower emission solution than cement, going some way to address the long-term challenge of de-carbonising the sector.
“This funding round will support an exceptional management team in completing the final push to commercial adoption, working in parallel with a number of operators who have shown real commitment to the technology.
"We are also delighted that Nigel Avern has joined the board to bring his own experience of building successful energy technology businesses.”