Buckthorn Partners and Saudi Aramco Energy Ventures (SAEV), the corporate venturing subsidiary of Saudi Aramco, have announced the investment package for the Aberdeenshire-based drilling and technology specialist.
This investment will provide the financial fuel for Paradigm’s plans to broaden its product portfolio, extend its geographical activity and bolster its research and development activities.
Paradigm Drilling Services is targeting turnover of £10 million in 2015 – a projected rise of 54% on its December 2014 year-end run rate of £6.5 million. The company employs 52 people and plans to recruit an additional 10 workers in the next six months.
Paradigm operates from a 40,000 sq. ft. base at Thainstone, near Inverurie (pictured) and plans to open another large facility in Aberdeen to accommodate its drilling tools and R&D functions. It has a growing list of patented technologies and specialises in hole enlargement, horizontal drilling systems and drilling tools.
Fraser Innes, Managing Director, Paradigm Drilling Services, said: “We are delighted to welcome Buckthorn and SAEV as investors in our business. Despite the gloomy market conditions at present, we have an exciting range of growth opportunities ahead in technical and geographic terms.
“With the support of our new investors we will also accelerate the development of our Horizontal Drilling System which has the potential to change the way that all horizontal wells are drilled.
“Technology like this will be essential to improve the economics of drilling horizontal and extended reach wells and this is more relevant today than ever.”
Mark Chaichian, Managing Partner of Buckthorn, said: “Paradigm is exactly the type of business in which we look to invest. There is a clear plan for use of capital to drive growth that is underpinned by a strong market position and product line.”
Nabil Al-Khowaiter, Chief Executive, SAEV, said: “We are delighted to have completed this investment in Paradigm Drilling. This is a company with a very strong team and slate of commercially available products today, while the extended reach drilling systems being developed should be truly game-changing for demanding drilling applications.”