China-focused Fund Invests in Wan Wei
London Asia Chinese Private Equity (LACPEF), the China-focused investment fund, has invested £4.17 million in Wan Wei Oil & Gas Technology Ltd ("Wan Wei"), the innovative Chinese provider of oil drilling technology in the Asia Pacific region. This investment takes the total invested to date by the Fund to over £47 million, with all the net proceeds of the fund raising last March utilized.
Founded in 2000, Wan Wei has spent six years developing what they believe is the world's leading Ultra Short Radius ("USR") horizontal well drilling solution, along with related well completion designs and special tools. The Company's USR solution is designed to maximize the full potential of re-entry projects, able to drill wells with arcs of 2.87m and build rates of 20 degrees per meter. The solution is used to rejuvenate mature or marginal oil wells, and is considerably cheaper than alternative solutions. The company has signed a number of long-term contracts with Chinese oil companies covering thousands of wells in China.
The funds invested will be used to support Wan Wei's existing contracts with domestic clients and finance its overseas expansion, where it is seeking to extend existing contacts into Indonesia and the Middle East.
Simon Littlewood, Executive Director of the Fund, said: "As sources of new oil around the world become harder to find, the focus is on maximising existing difficult or abandoned wells, for which this technology is designed. Chinese oil producers are being driven to maximize production to meet growing demand from Chinese industry and consumers. Wan Wei's patented, cost effective technology is well positioned to take advantage of opportunities not only in China, but worldwide."