Downhole tool maker earns $50M investment for expanding in shale

By Luke Geiver | January 09, 2019

Post Oak Energy Capital believes in the need for downhole tooling in the unconventional oil and gas industry. The investment firm just provided $50 million in capital to Houston-based Prime Downhole Holdings LLC. Prime engineers and manufactures downhole tools for clients across the globe.

“With its existing assets and product lines currently in place, Prime provides a platform on which to build a diversified oilfield equipment manufacturing company,” Post Oak said, “in the development and production of unconventional basins both domestically and internationally.”

The leadership team at Prime will also invest into the downhole tools company. Prior to Prime, members of the leadership team formed and grew two oilfield equipment manufacturing companies, BasinTek and Dyna-Drill.

Lief Syverson, CEO of Prime, said his company was looking for a strategic partner over the course of six months and after multiple interviews and talks with other options, the company felt Post Oak was the right fit.

Post Oak was formed in 2006 and has been involved in more than 20 upstream oil, production or midstream companies. Most initial investments by Post Oak are realized in two years or less.