Energy Ventures III LP has announced its involvement as the lead investor in the investment in Read Well Services Limited (“RWS”). Energy Ventures is joined by Viking Venture, KLP and the management team of RWS in the transaction. The investors and management will own 100% of the shares in RWS post transaction for a consideration based on an agreed enterprise value of NOK 170 million.

RWS, located in Aberdeen, Scotland, was established in 1990 as a downhole technology service provider to the oil & gas industry providing cased hole logging service and hydraulically expandable well construction and tubing/casing repair services. RWS is a subsidiary of Read ASA which has several other lines of business including seismic services and permanent monitoring which will not be part of the transaction.

RWS has a strong reputation as a long-standing high quality provider of Cased Hole Logging services in the North Sea region. The company has, in addition, developed a portfolio of ground breaking, patented products for downhole well construction and repair which are hydraulically expandable. Hydraulic expansion creates superior sealing quality whilst being cost effective and reliable. The business currently employs 67 people and is located in Aberdeen, Scotland. Revenues in 2009 were £8.6 million.

“RWS high quality service combined with their unique product portfolio and a strong management team creates a great platform for growth”, said Helge Tveit, Partner with Energy Ventures. “We are delighted to partner with the management team, Viking Venture and KLP in realizing this potential.“

Fraser Louden, CEO of RWS, said: “This change will provide an excellent opportunity for READ to grow our cased hole service offerings and accelerate the delivery of the HETS oilfield expandable solutions to a wider geographical market. This investment is ideal timing for the company and I look forward to a dynamic and rapid future growth at READ Well Services.”

“We strongly believe Energy Ventures will be a good owner in driving continued technology development and commercial growth for RWS”, says Ola Krohn-Fagervoll, Chairman of READ ASA. “Energy Ventures has the right combination of oil & gas technology expertise and upstream investment experience and capacity in order to build a first class oil service company. They are taking over a great organisation with highly motivated and skilled people which will serve Energy Ventures well in achieving their ambitions for RWS”, concludes Ola Krohn-Fagervoll.