Press Release
ARKeX raises 5.5 million pounds sterling to accelerate production of revolutionary survey technology
December 14 2005
Cambridge, England, Dec. 14: ARKeX, developer of proprietary gravity gradiometry technology, has clinched a deal with Chesapeake Energy, one of the largest independent gas producers in the United States, to use its pioneering full tensor gravity gradiometer, FTGeX, to identify promising geological structures in the US mid-continent area.
"Since our first commercial survey in May of this year, we have had an overwhelmingly enthusiastic reception in the market to our technology," said ARKeX Managing Director Kitty Hall. "We have a very strong order book already for the FTGeX with about 75 percent of 2006's capacity already sold. We are confident that our proprietary Exploration Gravity Gradiometer (EGG) system will be recognized as an even more ground-breaking development when launched later next year."
Chesapeake is one of a growing number of major energy clients that have conducted successful field trials of the FTGeX technology in North America. Following a successful initial survey, Chesapeake has committed to a three-month program to use the technology in early 2006.
"The gravity gradiometry data has significantly improved our geological understanding of the initial survey area and encouraged us to use it on a larger area in 2006," commented Chesapeake chief geophysicist Larry Lunardi. ARKeX also announced it had secured a second-round funding of 5.5 million pounds from a consortium led by Norwegian investors Energy Ventures and backed by existing investors, including Scottish Equity Partners, Dynamics and Eurovestech.
"The new funds will enable us to meet pent-up demand for our services," Hall said. "These funds will be used to accelerate our expansion of capacity as well as the opening of a US office. With this revolutionary technology and the success we've had in such a short period, we expect to play an increasingly important role in the North American oil and gas exploration market."
The funding round follows the successful commercial launch earlier this year of ARKeX's FTGeX gravity gradiometer. ARKeX, which was formed in Cambridge, England, as a spinout from both Oxford Instruments Superconductivity Ltd and ARK Geophysics Ltd, raised initial venture capital funding of 4 million pounds in 2004.
David Sneddon, Director of Scottish Equity Partners' Energy-Related Technologies group said, "In a short time ARKeX has gone from launch to having field crew out generating revenue with a product that is in high demand by major energy companies. The FTGeX has impressed clients this year and, in 2006, ARKeX will launch an even more sophisticated product into a global market hungry for this kind of breakthrough technology."
Leif Andre Skare, Investment Manager of Energy Ventures in Stavanger, Norway, commented, "ARKeX represents the combination of unique technology, competent management and high growth potential Energy Ventures is looking for in its investments."
The funding consortium was advised by DLA Piper, Technical Investment Services Ltd and by Deloitte Statsautoriserte Revisorer DA.
ARKeX, which has a world-class management team with vast experience in instrumentation, exploration geology and signal processing, is also making major strides in the development of its next generation proprietary technology, the EGG, which will be the world's first commercial superconducting gravity gradiometer. The EGG is currently undergoing lab testing at ARKeX's headquarters and is expected to go into commercial service in late 2006.