Warburg Pincus has acquired a significant minority stake in Spectraseis, providing new equity to finance the company's growth plans. StatoilHydro Venture Capital will continue to own a stake in the company together with Spectraseis' management team.
Established in 2003 in partnership with leading European universities, Spectraseis is the principal technology and service provider in the fast-emerging field of low frequency passive seismic geophysical surveys. Spectraseis helps oil and gas companies more efficiently find and produce hydrocarbon reserves, further reducing risk beyond conventional surveying and seismic techniques. Customers include Petrobras, StatoilHydro, Pemex and other major operators in the Middle East and North America.
Spectraseis CEO, Ross Newman commented:
"Today's announcement is a major milestone for Spectraseis. It signals our transition from an R&D-focused start-up to a commercial industry player and it is also a confirmation of the huge opportunities low frequency seismic technologies bring to the upstream E&P business."
"To have one of the world's top private equity firms commit this size of investment to us is a strong endorsement of our technology, our business model, our growth plans, and our people. From recruitment to technology development to growing our customer relationships, we look forward to continuing to commercialize the next generation of geophysical information."
Jeffrey Harris, a Warburg Pincus Managing Director, commented:
"We believe that Spectraseis is well-positioned to succeed as a leader in its industry. The company's technology and track record of R&D and service delivery are compelling. The company is led by a strong management team and operates within a market environment in which the industry is demanding reduced risk and greater returns on exploration activities. We are very excited about the opportunities ahead for Spectraseis."
As a result of the deal, Mr. Harris, who leads Warburg Pincus' investment activities in the energy sector, and Henry Makansi, head of Warburg Pincus' European Energy activities, will be joining Spectraseis' Board of Directors.
The financing announcement follows a number of recent achievements for Spectraseis including the completion of contracts with Pemex, Ecopetrol and StatoilHydro; the filing of its tenth patent application; and a successful North Sea marine trial. In October 2007, Spectraseis won the 2007 World Oil Award for Best Exploration Technology.
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