Nova Scotia-based Atlantic Motor Labs has developed a new type of motor that should reduce motor-related down-time while drilling by 30 per cent and save the oil and gas industry close to $1 billion per year.
The company will use a $250,000 seed investment from Innovacorp, Nova Scotia's early stage venture capital organization, to demonstrate and commercialize the down-hole motor technology.
The innovation uniquely combines features of piston and turbine motors and offers a simpler, more robust and longer-lasting drill motor than those used in more than 70 per cent of the world's drilling rigs.
"Today's standard drill motors frequently break down due to degradation of the rubber seals, and there is growing concern as exploration and production pushes towards more challenging geological formations with deeper, more complex wells," said Atlantic Motor Labs founder and president, Braden Murphy. "Our motor is designed without rubber seals and will extend the period between motor failures and servicing."
Mr. Murphy started Atlantic Motor Labs in 2013 as a spin-out of his award-winning undergrad and thesis work at Dalhousie University. He worked closely with Dalhousie's Industry Liaison and Innovation office to secure funding for patents and prototype development.
The company had previously raised close to $350,000 from private and public investors to support prototype development, patents and marketing to the drilling industry.
"The innovative hybrid piston-turbine motor design from Atlantic Motor Labs has potential in several different markets, with the global market for drill motors alone estimated at $1.5 billion," said Michael Dennis, investment manager at Innovacorp. "The impact of Atlantic Motor Labs' technology on reducing costs and non-productive rig time could change the entire drilling industry's outlook on using down-hole components.
"We're looking forward to being a part of their future success."
For more information, contact:
Atlantic Motor Labs
Halifax, Nova Scotia, March 24, 2015