Money moves
AI-powered oil and gas startup secures $15 million from Houston VC firms in its series B
It's payday for Ambyint. The Canadian startup, which has an office in Houston, has closed its $15 million series B funding round with support from local investors.
Houston-based Cottonwood Venture Partners led the round, and Houston-based Mercury Fund also contributed — as did Ambyint's management team, according to a news release. The money will be used to grow both its Houston and Calgary, Alberta, offices and expand its suite of software solutions for wells and artificial lift systems.
"This funding round is an important milestone for Ambyint, and we're pleased to benefit from unwavering support among our investors to boost Ambyint to its next phase of growth," says Alex Robart, CEO of Ambyint, in the news release. "It is also a proof point for our approach of combining advanced physics and artificial intelligence, deployed on a scalable software infrastructure, to deliver 10 to 20 percent margin gains in a market where meaningful improvements have been hard to achieve."
Ambyint's technology pairs artificial intelligence with advanced physics and subject matter expertise to automate processes on across all well types and artificial lift systems.
Photo via ambyint.com
"Our physics-grounded approach to AI is the difference maker and explains our strong growth in the market as well as our expanding list of marquee customers," says Ryan Benoit, chief technology officer of Ambyint in the release.
The company has mid- to large-sized operators, including Norway-based Equinor and Calgary-based Husky among their customers. According to the release, Ambyint has deployed solutions in every major North American basin.
"Improving margin on producing wells is more important than ever for operators," says Ryan Gurney, managing partner at Cottonwood Venture Partners, in the release. "Ambyint has delivered significant financial benefits for its customers with the application of advanced physics and artificial intelligence, over and above traditional approaches to production optimization. We're excited to see them expand further in the market with solutions that span the entire lifecycle of the well."
According to Ambyint's website, the software promises the ability to increase production levels by 5 percent and lower operating costs by 10 percent.
"Producers flourish — even in a down market — when they understand how exploiting their data effectively can increase productivity and reduce costs," says Adrian Fortino, managing director at Mercury Fund, in the release. "Ambyint turns data into higher yield, more efficient oil and gas production with proven optimization technologies. We're excited to continue our partnership with such a great company and investor syndicate."