Technology business LUX Assure has received £3.25m to transform the company from a technology development business to a service provider for the oil and gas industry.
The investment comes from ConocoPhillips; Statoil Technology Invest AS; Archangel Informal Investment (Archangels); and the Scottish Investment Bank (SIB), a division of Scottish Enterprise.
LUX Assure’s CoMic™ and OMMICA™ products will form the core of the company post investment. CoMic™ is used to deliver improved corrosion management. Corrosion costs oil companies many millions of dollars each year and CoMic™ enables optimisation of chemicals used for corrosion protection. OMMICA™ offers a simple method to monitor hydrate inhibitors.
Laurence Ormerod, Chairman of LUX Assure said: “This major investment will allow LUX to capitalise on the excellent chemical monitoring products developed by the company. CoMic™ and OMMICA™ products have been very well received by the industry so this seems to be an appropriate time to dedicate the company to growing sales, both within the UK and overseas. We are delighted to have ConocoPhillips and Statoil as new shareholders.”
Since 2010 Archangels, Scotland’s largest provider of business angel funding has, along with SIB invested £0.8m in LUX Assure, after identifying significant promise in the company’s plan to focus on the oil and gas industry.
Commenting on the business angel investment, Andy Laing, Investment Executive at Archangels said: “This has been a welcome opportunity for Archangel to support LUX Assure’s continued growth and to demonstrate that business angel groups can successfully co-invest with venture capitalist firms. This level of investment, coupled with the skills and experience across the shareholder base, substantially increases the likelihood of commercial success for LUX and strong financial returns for investors.”
Scottish Enterprise supported the investment through the Scottish Venture Fund, operated by SIB. Kerry Sharp, Acting Head of SIB, said: “We’re pleased to be continuing our support for LUX Assure with this deal; and to be part of a team bringing together Archangel, a longstanding SIB investment partner and one of Scotland’s most prominent business angel groups, and the venture capital arms of Statoil and ConocoPhillips.”
Jan Ellevset, Investment Director in Statoil Technology Invest said: “Statoil Technology Invest is constantly looking for exciting new technology that can improve our operations and where our investment will help speed up the commercialisation process, LUX Assure fits the bill.”
Ram Shenoy, Chief Technology Officer of ConocoPhillips, said: “ConocoPhillips is proud to be investing alongside Statoil and the existing shareholders in Lux Assure, a company with promising technologies.”
Source: LUX Assure