Well Conveyor AS, a Norwegian downhole technology company, has received equity investment from Chevron Technology Ventures (CTV), a division of Chevron U.S.A. Inc. combined with additional investments from existing investors ProVenture and Investinor, the company raised NOK 15.7 million (USD 1.8 million).
The funding from this financing round will support the qualification and commercialisation phases for the company’s innovative Slim Battery-powered Conveyor. The Slim Battery-powered Conveyor will be the smallest diameter downhole tractor available on the market, offering access to the increasing number of slim, horizontal and highly deviated wells, which up to now have not been serviceable with wireline type conveyance.
The Conveyor has been optimised for running on batteries, with an efficient electro-mechanical design, allowing for extended tractoring distances of more than 15,000 feet. Not being dependent on power and communication from the surface allows operators greater flexibility and lower priced conveyance alternatives. The Conveyor has been designed for simplified operations and reduced maintenance, enabling the service to be provided by the regular wireline/conveyance providers. This translates into less interfacing and manpower being needed for operations.
Well Conveyor was founded in 2015 by Kenneth Fuglestad to pursue the development of a novel downhole tractor that would be more cost-effective, slimmer, simpler to operate and more power efficient than existing offerings, allowing for the utilisation of downhole battery power. Early support came from angel investors, the Research Council of Norway and Innovation Norway, which took the company through the concept, feasibility and early development phases for the Conveyor.
ProVenture and Investinor invested in the company early 2018, and Chevron Technology Ventures (CTV) invited Well Conveyor to participate in its Catalyst Program. CTV’s Catalyst Program was created to support early-stage companies advancing cutting-edge technologies that can directly benefit the oil and gas industry. These relationships provided the means to advance the development and qualification phases and to expand the organisation.
Well Conveyor has carried out extensive in-house qualification testing of the technology and is now preparing for first field trials in the US. The patented Slim Battery-powered Conveyor will serve as a platform for additional innovative and cost-effective conveyance solutions to be developed by the company.
“We have greatly appreciated the support from Chevron Technology Ventures since we were accepted to the Catalyst Program early last year,” says Jan Vader, CEO of Well Conveyor. “We are excited and honored to further strengthen the relationship through this equity investment, and continue the successful cooperation with Chevron Technology Ventures, ProVenture and Investinor as we transition from the development phase to the commercial phase of the company.”