PERTH, 30 October, 2009 – Perth-based Advanced Well Technologies (AWT) and Brisbane-based MBA Petroleum Consultants (MBA) advised completion of a merger of the two Companies to take advantage of the strong demand for sub-surface and well engineering consultancy services in the coal seam methane (CSM) sector in the Eastern States and conventional oil and gas sector on the West Coast.
AWT Executive Chairman Samantha Tough described the merger as a compelling engagement of complementary capabilities and an expansion of strategic geographic positioning for both companies.
Ms Tough stated that, “the imminent progression from exploration to appraisal and development of CSM assets to underpin deliverability to LNG export facilities will require innovative engineering and field development solutions. Combining MBA’s world-class CSM sub-surface expertise with AWT’s well design and implementation capabilities offers a one-stop solution to clients seeking to ensure effective commercialisation of their assets.”
“Overlying the explosion of activity in the CSM sector is the continued focus on development of world-scale gas resources in the North-West of Australia. AWT has been actively supporting major clients in the design, construction and testing of high rate gas wells for over a decade and the merged group is well positioned to benefit from further growth in these activities.”
In addition to core strengths in the offshore and CSM sectors, AWT and MBA are seeking to expand their active involvement in unconventional hydrocarbons (tight gas and gas shale), geothermal resources and carbon capture and storage (CCS) projects.
MBA has been intimately involved in defining and implementing the sub-surface exploration and appraisal programme for Australia’s first bespoke carbon capture and storage project – the ZEROGEN project in Queensland. From initial storage reservoir identification through to design and management of the appraisal programme (now on the 11th well) MBA has established its position as the pre-eminent sub-surface consultancy for future projects in this region. Combining with AWT’s well design and well integrity capabilities, the combined companies will be able to provide complete solutions for clients requiring experience and support in similar such projects through-out the Australasian region.
The Executive Director and one of the Founders of MBA, Wal Muir described the merger in the following terms. “MBA has built a reputation as a leader in the delivery of geological, geophysical and reservoir characterisation capabilities in the energy sector over the past decade. We have particular skills focused on CSM development and in the rapidly emerging CCS sector in additional to our extensive experience in the conventional hydrocarbon sector. We identified AWT as a great business partner offering an expansion of our involvement from the reservoir to the process facility and potentially beyond. The cultures of both companies are very similar and we expect the merger of our capabilities to proceed seamlessly as we move to quickly expand our offering jointly to our clients”.
This merger is aligned with the growth strategies of both companies and supported by Propel Investments, the private equity investment partner in AWT, led by Peter Dowding and Albin Kurti.
“This merger reflects the strategic growth plan on which we based our investment in AWT”, said Propel managing director Mr Dowding. “We see significant continued growth in the Asia-Pacific energy sector underpinned by the CSM sector and further enhanced by such recent announcements as the Gorgon project FID. The merger of AWT and MBA brings a unique offering to clients in these sectors covering both the Asian corridor and Australia-New Zealand regions. We will continue our commitment to investment in this sector and support of the merged group as they consolidate their position through further organic growth and appropriate acquisition strategies”.
AWT was established in October 1996 and currently has around 70 engineering and support personnel. MBA was established by its two founders Wal Muir and Doug Barrenger in 2001 and currently has around 25 sub-surface professionals and support staff. Mr. Muir and Mr. Barrenger will continue in their executive roles with the combined group.
Mr. Muir will join the Board of AWT.
Samantha Tough,
Executive Chairman,
Advanced Well Technologies
Tel: +61-8 9327 3400