Statoil and Sumitomo take ownership in CannSeal

Press Release

On Wednesday, September 30th, Statoil Technology Invest and Sumitomo Corporation officially signed an agreement to take ownership in the well technology company CannSeal AS. Altor 2003 Fund and Altor Fund II continue, through their ownership in EDS Group, to be the major investors.

 “CannSeal is pleased to welcome Statoil Technology Invest and Sumitomo Corporation as new investors. After 10 years of research and development, the technology is now qualified for offshore use. We are about to perform the first well operation in the North Sea. Despite low oil price and reduced drilling activity, production optimization of mature fields will have high priority by the oil companies”, said Gunnulf Rasmussen, CannSeal CEO. “The specialized tool will perforate and inject epoxy plug material into the annulus in a single wireline run. This type of low cost operation is presently not available in the industry. The alternative approach today is either recomplete at high cost, or to leave as is with potential lost production”, according to the CannSeal founder and solution adviser Bengt Gunnarsson.

 “We are truly excited to get Statoil Technology Invest and Sumitomo Corporation onboard. These are two highly competent corporations and investors that will be instrumental in the next stage of the development of CannSeal.” said Pål Stampe, partner at Altor Equity Partners.

“Investment in CannSeal is an exciting opportunity for Sumitomo Corporation to support the marketing of such an innovative new technology which is now available to the global O&G industry. The CannSeal product offers new value to Statoil and our customers, by contributing to reduced total costs during the well intervention stage”, said Kiyoshi Sunobe, CEO, Sumitomo Corporation Europe.

Richard Erskine, head of Statoil Technology Invest, said:  “We are very happy to be making this investment in CannSeal AS. The innovative technology for in-well zonal isolation which CannSeal has developed addresses the problem of reducing excessive water production in some of our production wells. It is highly relevant in the current environment where we need to look for new cost effective technology. We are also delighted to be cooperating with Altor and Sumitomo on this investment.”

 

Contacts:

CannSeal AS, Gunnulf Rasmussen, CEO, gunnulf.rasmussen@cannseal.com, +47 907 47 750

Statoil Technology Invest, Ivar Aune, Investment Manager, iaun@statoil.com, +47 995 62 688

Altor, Eivind Reiten, CannSeal Chairman of the board, eivind.reiten@altor.com, +47 915 52 245