BGF exits Aberdeen-based isol8 to Archer

BGF has completed a successful exit from innovative well technology company isol8, as it’s acquired by global energy service company Archer. The acquisition of isol8, which has offices in Aberdeen and the USA, advances Archer’s strategy to become the well plug and abandonment (P&A) company of choice.

isol8 designs, develops and deploys alloy-based barrier solutions and advanced materials, for use in well completions, intervention, P&A, and its industry-leading Fusion Barriers. It provides a longer lasting and more environmentally friendly solution than traditional cement-based methods.

BGF made a 3.5 million minority equity investment into isol8 in 2021, with further investment in 2023 and 2025, to support ongoing development and commercialisation of the patented ‘Fusion’ technology.

Andrew Louden, Founder and CEO of isol8, said: “We’ve valued the strong relationship we’ve built with BGF over the past five years. Their support and expertise have underpinned the continued development of both our core technologies and thinking through the market applications.

“Now, Archer’s global reach and established customer base create a strong platform to scale deployment of isol8’s technologies across the entire well lifecycle. Together, we have the opportunity to expand adoption of our existing alloy barrier products and accelerate the commercialisation of our emerging metal element technology.”

It has previously been estimated that successful deployment of isol8’s technology could unlock savings of between £1.5 million and £7 million, for platform and subsea well abandonments. This could translate to savings of £2 billion to £5 billion in North Sea well decommissioning costs.

Richard Pugh, Investor at BGF, said: “It’s been a pleasure working with Andrew and the isol8 team, and Archer is an ideal fit for furthering the technology they have developed. This acquisition by Archer also shows that the M&A market for energy technology businesses remains open. Developing new technology is hard, and the team have shown the required combination of ingenuity, patience and perseverance. The acquisition recognises the value and global applicability of what they’ve built – and we wish them every success in future.”