Advance Capital announces the signing of the agreement on the series B investment round for Geosplit, one of the leading developers of production logging technology in various types of wells worldwide

03 October 2019

Advance Capital is pleased to announce the signing of the transaction documents on the series B investment round for Geosplit, a Russian developer of production logging technology in horizontal oil and gas wells using quantum markers. The investors in this round are United Capital Partners and Rusnano Sistema SICAR (a joint VC-fund of AFK Sistema and JSC Rusnano), one of the current shareholders of the company.

The funding will be used to expedite the company’s international expansion (with primary focus on China and the Middle East markets) as well as on developing new marker technology based products and solutions for digitalizing oilfield development process.

Advance Capital acted as the exclusive financial advisor of Geosplit. The size of this investment round is US$5 million.

At the end of 2017, Geosplit had closed its series A investment round raising US$1.5 million from Rusnano Sistema SICAR. As a result of the first investment round, the company has developed a whole line of products for oil & gas companies to perform production logging analysis in various types of wells.

 

Alexander Katashov, Chief Executive Officer at Geosplit:

“This is a major milestone in the history of the company. In the two years since closing the series A round, we have gone through the “death valley” of startups, achieved positive net income, launched 50 well analysis projects for 10 oil & gas companies (including customers in China), opened a first-class R&D laboratory in Skolkovo Technopark, and built a strong team, so we are determined to move forward”.

Dmitry Kasyanenko, Managing Director at Advance Capital:

“Geosplit’s success story shows that there is a serious investor demand in the market for companies with high-quality innovative products and significant international expansion potential. Digital transformation of traditional industries continues at a fast pace while companies in the industrial technology segment are of particular interest, especially if they already have ongoing international projects”.

 

About Geosplit:

GEOSPLIT is a high-tech oilfield service company, a developer and integrator of advanced technologies for the oil & gas industry. The innovative GEOSPLIT technology for production logging is based on quantum marker-reporters, which form the basis of the know-how of the company.

About UCP:

UCP Investment Group is one of the largest financial investment groups in Russia. It was established in 2006 by Ilya Sherbovich and partners to manage their own assets and those of their co-investors. Total AUM of the fund currently exceed $3 billion.

About SICAR:

Rusnano Sistema SICAR – a joint fund of AFK Sistema and JSC Rosnano, established in 2016. The average size of one investment is at $3 million to $10 million. The fund invests in high-tech projects at the early stage, as well as in growing and established companies in Russia, the CIS countries, Europe and Israel.

 

Media coverage:

RBC

Vedomosti

Geosplit web site


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