The world of oil and gas data analytics is a little bit smaller after the acquisition of two firms by Enverus.
RS Energy Group (RSEG) and Q Engineering have both been recently purchased by Enverus, the analytics provider formerly known as DrillingInfo. Terms of both acquisitions have not been shared.
Established more than 20 years ago, Calgary-based RSEG is provider of in-depth shale sector analysis that is used by operators and investors looking for learnings or the next acquisition opportunity. Since 2015, RSEG’s client base has increased by nearly sixfold, the companies said in a press release.
This latest consolidation is a reminder that data aggregation and reporting services have become one of the most visible areas of investment as a result of the upstream industry’s digital transformation.
“This is about accelerating innovation through high-powered technology and is another active step for Enverus in breaking down silos by building work flows across engineering, geology, land, operations, and so much more. Our aligned vision, client-centric focus, and a relentless commitment to innovation will help our customers solve their most complex challenges. These values will never change,” said Jeff Hughes, the chief executive officer and president of Enverus, in a statement announcing the deal.
The rise of Enverus and RSEG have coincided with the evolution of the unconventional sector in North America. Tight reservoirs are complex, as are their production profiles, and the sector’s vast scale of hundreds of thousands of producing wells has created widespread demand for software tools that can quickly deliver analyses of past performance and predictions on future returns.
Q Engineering is a Houston-based startup that developed a cloud-based software focused on generating rapid type curve estimates for the US onshore sector. The firm had a prior data-sharing partnership with Enverus before being acquired last month.
Enverus is owned by the San Francisco-based private equity group Genstar, which acquired DrillingInfo in 2018 and renamed the company last year. At the time of its purchase, DrillingInfo boasted 3,500 clients with more than 45,000 users.
Since being owned by Genstar, Enverus has acquired several other companies. The list includes geologic data firms such as Earth Index and Reservoir Visualization Inc. It has also acquired mineral rights, financial automation, and drilling rig tracking firms: MineralSoft, Oildex, Midland Map Company, and Rig Data.