Decommissioning specialist Well-Safe Solutions has raised the cash needed to fund the purchase of its third rig.
The Aberdeen-headquartered company today announced the completion of its third investment round, which yielded £50 million.
As well as covering the cost of the WilPhoenix semi-submersible rig, the money will also be used to broaden the capabilities Well-Safe offers to clients globally.
New and existing investors
London-based principal investment and financial advisory firm MW&L Capital Partners headed up the funding round, with participation from a consortium of new and existing investors.
This latest investment brings the total capital raised by the company to over £150m.
Phil Milton, Well-Safe’s chief executive, said: “This further investment demonstrates our strong investor support, enabling ongoing growth here in the UK as well as delivering the next stage of Well-Safe’s international growth.
Take model to new markets
“The capital raised in previous investment rounds has been instrumental in enabling the company to put in place a world-class portfolio of bespoke well plug and abandonment (P&A) assets, backed by expert onshore and offshore teams.
“These investments are now bearing fruit thanks to recent contract wins and workscopes throughout the North Sea for our rigs and well engineering teams.
“As we continue to build upon Well-Safe’s operational record, we are looking forward to exporting this model to new markets, which have expressed an interest in our collaborative, multi-well, multi-operator approach to well decommissioning.”
The rig will be renamed the Well-Safe Defender, and will undergo improvements as part of its repurposing as a dedicated plugging and abandonment (P&A) asset.
It joins the Well-Safe Guardian semi-sub and Well-Safe Protector jack-up rig.
String of wins for Well-Safe
The funding round follows hot on the heels of Well-Safe being awarded its first contract with Ithaca Energy for the Well-Safe Protector.
The jack-up will be used to decommission a handful of wells located in the southern North Sea.
It follows a period of “positive momentum” for Well-Safe, which has added more than 100 new employees to its books in the last year.
Alasdair Locke, chairman and majority shareholder of Well-Safe Solutions, said: “Congratulations to Phil and his team for the continuing success in the execution of our plan.
“This financing allows a step change in the capabilities of Well-Safe Solutions, enabling us to be competitive on a global basis. I’m grateful for the support from existing and new investors.”
Julian Metherell, a founding partner of MW&L Capital Partners, added: “We are delighted to continue to partner with Well-Safe to build a world-class decommissioning business.
“We are well supported by existing investors and delighted to have attracted new investors who share our vision for the business.”