Red Spider Raises £7.5 Million

Red Spider Ltd., a UK-based provider of remote open close technology for the global oil and gas market, has raised £7.5 million in growth equity funding from Energy Ventures and Simmons Parallel Energy Fund.

PRESS RELEASE

Red Spider Limited today announced that Energy Ventures and Simmons Parallel Energy Fund have invested £7.5 million growth equity in the company.   The investment will be used to both accelerate the internationalisation of the existing Red Spider business and complete the commercialisation and roll out of Red Spider’s game-changing Remote Open Close Well Intervention and Completion Technologies.

Red Spider’s Remote Open Close Technology enables remote actuation of downhole valves without the need for well intervention or control lines. This represents a major advancement over currently available downhole flow control equipment and enables significant Rig Time Savings, in particular for Well Intervention & Construction.  eRED (Electronic Remote Equalising Device), the first tool to use Remote Open Close Technology for pressure testing applications, has already gained the confidence of  E&P customers in both UK and Norwegian sectors and is seeing strong interest from international customers. Building on the success of eRED, Red Spider is developing further downhole applications using this technology.

“Red Spider has an exciting technology with a compelling value proposition,” said Gregory Herrera, who heads Energy Ventures UK Business.  “Its Remote Open Close Well Intervention technology is unique and would become the industry standard solution for various downhole applications. We believe that management have identified a high growth niche and we look forward to supporting them to deliver their vision.”

Frank Summers, Head of Simmons Parallel Energy, said: “We are delighted to support Red Spider and its management team.  Simmons Parallel Energy continues to be a very active investor with this, our third energy service sector investment in the last four months.  The capital we are providing will help accelerate the growth plans, particularly the new Completion products currently in development and the continued internationalisation of the business.  We look forward to working with Steve and the team.”

Steve Nicol, Managing Director of Red Spider, said: “Red Spider has developed strong relationships with leading oil companies and we are currently completing a number of joint product development collaborations. These collaborations will accelerate market introduction and acceptance. The investment marks another big strategic step for the company and follows the best year yet for our business, achieving revenue growth of 70% from 2008, from bases in the UK, Norway and Dubai. ”

Steve further added: “We recognise the importance of bringing our new products to market on time to meet an increasing demand. We are specialists in Remote Open Close Technology and this investment will fuel the company’s product development efforts in new applications as well as sustain and grow our existing business. In addition, the expertise, contacts and geographic spread of Energy Ventures and Simmons will also make a major contribution to accelerating the company to its full potential much sooner.”

With its custom-built headquarters at Westhill, Aberdeen, Red Spider, established in 2003, now employs almost 50 people. The strategy for growth includes an additional 10 employees in 2010, and more in the longer term.

Energy Ventures
Established in 2002, Energy Ventures is the leading venture capital firm providing competent capital to high growth oil and gas technology companies. Energy Ventures manages and advises four oil and gas venture funds with a combined capital base of US $400 million. Energy Ventures is headquartered in Stavanger, Norway, with offices in Aberdeen, U.K., and Houston, U.S. Energy Ventures’ professionals have extensive industry, investment, transaction and stewardship experience, as well as a wide-ranging network in the oil and gas industry. For additional information, please visit www.energyventures.no.

Simmons Parallel Energy Fund
Simmons Parallel Energy Fund is a private equity fund established to make minority co-investments, typically of £2 million to £5 million, across the energy sector. Investing predominantly in established businesses across a broad value range, Simmons Parallel Energy brings 35 years of energy investment banking experience and an extensive network from its parent Simmons & Company International and aims to use this to the benefit of investee