AI-powered shale software developer gains $15M investment

By Luke Geiver | May 21, 2019

Artificial intelligence software designed for the energy industry continues to gain investor attention. Tachyus, a production optimization software developer that first gained investor backing in 2014, has just announced a new Series B round of funding worth $15 million. The company was founded in Silicon Valley but now calls Houston home. Cottonwood Venture Partners, a growth equity firm that partners with technology companies providing digital solutions to the energy industry, led the investment round.

With the new capital, Tachyus believes it can reach more customers and expand on its software capabilities. The AI-based software analyzes reservoir and downhole changes from hydraulic fracturing, waterfloods or steamfloods. In shale operations, the system optimizes the amount of frac fluid needed downhole while predicting production response and adjustments needed for choke settings.

Ganesh Thakur, former Society of Petroleum Engineers and Chevron Vice President, who is now an advisor for the company, said the Tachyus technology is important to the petroleum industry because it combines the robustness of the known physics and the speed of modern data science.

According to the company, Tachyus’ Data Physics integrates the same fundamental physical principles found in traditional reservoir simulators with data science techniques such as machine learning to rapidly predict and optimize shale response. Engineers use Fraceon, the shale specific application, not only to decide where and how to complete and produce, but also to validate the underlying predictive models powering the Tachyus platform.

“In this economic environment, oil and gas operators need disruptive tools to optimize their fields,” Tachyus CEO and Co-Founder, Paul Orland said. “This investment allows us to reach more customers and accelerate the delivery of new technology that improves our clients’ business performance.”

“As the oil and gas industry evolves in the face of new commercial challenges, operators need to focus on getting the best performance from their assets, and Tachyus’ technology has a track record of doing just that,” said Jeremy Arendt, managing partner of CVP.