Texas-based Propell Technologies, which owns an exclusive license to use clean fracking technology developed by a Skolkovo resident, has received a $5 million investment from Roman Abramovich's Ervington Investments.
The deal, announced this week, spells a big future for Novas Energy, whose plasma-pulse technology is considered a clean and safe method of oil and gas recovery.
Novas Group chief Nikita Ageev. Photo: sk.ru
“The investment by Ervington is a strong endorsement of Propell's innovative approach and strategy to treat oil wells by a strategic global investor with a track history of enormous success,” said John Huemoeller, Propell’s president and CEO.
“This strategic investment should expedite our rollout plan, provide us with high level access to energy users and potential partners globally and provide the necessary funding to accomplish our goals,” he added.
Propell announced that Ervington had received 1.5 million shares with the option of another 3 million shares for $9.75 million, taking the potential investment up to $15 million.
Novas was founded in Russia in 2007 and has developed with the help of a $1 million Skolkovo grant. The Skolkovo resident entity, attached to the Energy Cluster, is named Novas Sk, with the Houston-based arm - owned by Propell - known as Novas Energy.
Plasma-Pulse Technology (PPT) is an environmentally friendly technology that allows producers to obtain sustained higher productivity from their oil wells.
The technology has helped increase oil recovery in more than 300 wells in Russia and the CIS, and more than 40 wells in the United States. In 2013, Novas became a partner of the United Nations Industrial Development Organization (UNIDO).
In October, Novas Sk and fellow Russian company Georesonance signed a major three-way deal with China’s Fortuna Technology Co. at the Open Innovations Forum in Moscow to improve safety conditions in Chinese mines.
Ervington Investments is a Cypriot-based investment vehicle owned by Abramovich.