Dunedin Enterprise Buys Into EV Offshore

UK-based downhole video technology specialist EV has completed a $117 million (£69 million) management buyout backed by Dunedin, the UK mid-market buyout house.

Headquartered in Norwich, EV has become the market leader in downhole video applications for the oil and gas industry, as a result of previous backing from Lime Rock Partners.

The company has experienced significant global growth and expansion since it was established in 2000, recording an increase in turnover from £1m in 2010 to almost £20m in 2014.

EV has a strong exporting record, 85% of its revenues are currently generated overseas. Earlier this year, the company was awarded a Queen’s Award for Enterprise in International Trade, in recognition of its continued growth in overseas business.

Francis Neill, chief executive of EV, said: “As a market leading technology company with a global presence, EV represents a strong UK success story. Lime Rock Partners’ backing over the last 4 years has enabled EV to grow by a factor of 20 and establish operations from Alaska to New Zealand.

“Moving forward we are very excited to have Dunedin joining the team. The backing will enable EV to further grow its business around the world, adding us to the list of the UK’s world class oilfield service companies.”

Oliver Bevan, an investment director at Dunedin who will join EV’s board, added: “EV Offshore has grown quickly over the last three years, fuelled by its world leading products and strong demand from a market beginning to understand the cost and operating benefits that EV can deliver. It has developed market leading down-hole video technology and is now poised to marry this with sensor tools to offer oil and gas well operators significant new capabilities for problem diagnosis and well production optimisation.

“We see a clear opportunity for EV to broaden its product and service offering and in turn deliver significant additional growth. This typifies Dunedin’s approach to investment – backing fantastic UK companies and helping them to shine on an international stage.”

EV recently opened a new technology centre in Norwich to house its research and development, which represented a world first in a centre that is completely dedicated to downhole video.

The company’s innovative cameras operate consistently at pressures of up to 15,000 psi and temperatures of up to 175°c. The company has also developed the ability to transmit clear colour, high definition, video images from over 8.5 kilometres below the earth’s surface.

Increasingly, EV’s products are being used in conjunction with other down-hole tools to allow operators to optimise production conditions in the well. The cameras can also be used to provide a video record when old wells are abandoned.

EV, which splits its headquarters between Norwich and Aberdeen, has a team of around 100 employees. The company has 17 worldwide bases and has grown at a rapid pace in the last three years.

Press Release, June 25, 2014