Geosplit, a Russian startup making technology for monitoring oil and gas wells, has raised $1.5 million from Rusnano Sistema Sicar, the private equity fund co-run by Russian conglomerate Sistema and government-backed fund Rusnano.
Geosplit develops technology for monitoring well flows in downhole operations using markers for examining the well's production process and safety, which can then be analysed using machine learning. The company plans to use the new funds for further development of the technology and new products.
Sergey Vakhterov, managing director of Rusnano, said in a statement that only a small number of wells in Russia are being properly studied. Geosplit can find a “dominant position in the market due to its technological advantages over Russian competitors,” he said, adding that its technology is more cost effective than foreign competitors.
“The large-scale use of marker monitoring takes well operation control to a whole new level, as well as reduces the expenses of extracting companies on downhole operations,” said Alexander Katashov, CEO of Geosplit. “Therefore, the economic benefit from the use of the technology is estimated at many millions of rubles for each well.”
The company has carried out marker surveys on 20 horizontal wells so far and plans to double that in 2018 in Russia before beginning its export programme in other markets.