Acquisition (With Management) Of Axis Well Technology Ltd

Elysian Capital I LP, the independent private equity fund specialising in the UK lower mid-market (Notes), has acquired in conjunction with management, Aberdeen based Axis Well Technology Ltd, the industry leading oil and gas consultancy. www.axis-wt.com

Axis Well Technology Limited (“Axis” or the “Company”) is a leading independent provider of oil and gas consultancy services to the upstream oil and gas sector. Since establishment in 2001 by Jim Anderson, Axis has grown rapidly from its well testing focus to become an industry leader of integrated in-demand consultancy services throughout the well life cycle in well testing; well intervention; completions; petroleum engineering; oil and gas production optimisation; subsurface and project management.

Based in Aberdeen, the Company is an outsourcer to predominantly independent oil and gas service companies operating in the North Sea region and increasingly around the world. In the year to January 2013, turnover reached a record £21.1m from approximately 150 employees and consultants. The transaction will enable Jim Anderson and his management team to invest in the continued growth of the business with expansion overseas together with a widening of its service offering.

Ken Terry, CEO of Elysian Capital, said: “We are delighted to be able to support Axis Well Technology Ltd and Jim Anderson and his team in their future growth. Jim has built a very successful, market leading business in this strategically important sector. The reputation of the company and its employees and consultants is second to none and there is a very exciting opportunity to expand the business, both domestically and internationally in support of their customers’ growth”.

Jim Anderson, founder and CEO of Axis Well Technology Ltd said: “Axis has been very successful but the opportunity now is to expand worldwide with the opening of overseas offices and the growth of both our services and our highly qualified personnel. Elysian Capital shares our vision for the future and has impressed me with their entrepreneurial and supportive approach and outlook and I look forward to the continued success of the Axis group in our future partnership”.

Axis’ services have become in high demand from its clients, who value the crucial skills and experience that they can call on to allow them to develop their oil and gas assets. These often independent oil operators are acquiring assets from the oil majors and developing them economically long after the oil majors have moved on. Alternatively, Axis may be supporting more established oil and gas companies that are developing new or existing fields in frontier regions of the world. The majority of Axis’ work involves delivering practical engineered solutions to their clients on production optimisation of existing wells and ensuring well integrity is maintained, although new “green field” related reservoir and geology analysis is also undertaken. Estimates suggest worldwide Oil and Gas growth of 10%p.a. with Axis’ opportunity significantly above this as customers around the world increasingly need experienced personnel on a sub-contract, flexible cost basis to meet this demand.

Elysian Capital was advised by Johnston Carmichael (Aberdeen, corporate finance, financial and tax due diligence); Calash (commercial); Eversheds (legal); Aon Group (Insurance). The Vendor was advised by Simmons and Company (corporate finance); Burness, Paul and Williamson (Legal).

Senior Debt and working Capital Facilities were provided by Lloyds Bank plc, Aberdeen