ZiLift, an Aberdeen, Scotland-based provider of artificial lift solutions for the oil and gas industry, has received a growth capital investment of £4 million (US$7 million) from new and lead investor Energy Technology Ventures – a GE-NRG Energy-ConocoPhillips venture – and existing investors Energy Ventures, Chevron Technology Ventures, Viking Venture, Jebsen Asset Management and Investinor.
ZiLift exclusively develops innovative next-generation technologies for the artificial lift market, a global market estimated to be worth US$6 billion. The proceeds from this investment round will assist ZiLift in completing product development and achieving commercialisation of its technologies.
Kevin Skillern, GE Energy Financial Services’ managing director of venture capital and representative of Energy Technology Ventures, said: “ZiLift represents Energy Technology Ventures’ first investment in Europe and fourth in the oil and gas technology sector. We are providing vital funding and critical technical support to help achieve commercialisation. ZiLift is a great example of what we look for in our investments – providing a game-changing innovation in a big market, with a skilled team.”
Stuart Ferguson, ZiLift chairman said: “Artifical lift technologies are currently utilised in 80% of all oil wells worldwide. Gas well dewatering and heavy oil are emerging markets and are set to grow to multi-billion dollar mainstream markets. We are confident Zilift can become the industry standard in these markets.”
ZiLift is pursuing joint development programs with leading oil and gas companies such as ConocoPhillips, Chevron and a major Middle East oil and gas operator. The assistance of these companies has enabled ZiLift to develop innovative technologies that address real market issues and opportunities by significantly reducing time and cost associated with installing and servicing conventional artificial lift equipment.
ConocoPhillips is actively working to accelerate technology deployment through a joint development project with ZiLift. “We are excited about the progress that ZiLift has made, and our ability to leverage our sector expertise in upcoming field trials and commercialisation efforts,” said George Coyle, ConocoPhillips Technology Ventures’ manager of investments and representative of Energy Technology Ventures.
Iain Maclean, CEO of ZiLift, said: “There is a great deal of interest in our technologies and this additional funding provides us with the resources to forge ahead with product development to achieve commercialisation. Testing of our prototypes is now in its final stage and we are currently planning to start field trials in the second half of 2012.”
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