Oil and gas modelling software provider Stochastic Simulation has entered into a $5 million deal to acquire modelling technology from Predrill Stresses International.
Osborne Park company Stochastic Simulation has added to its range of specialist software for the oil and gas sector after entering a $5 million deal to acquire modelling technology from Predrill Stresses International.
The software, 4DGeoStress, is earth stress analysis technology used in structural geology for reservoir modelling, field development, well planning and drilling.
It will complement Stochastic’s existing software program suite of ResAssure, GasAssure and OilAssure, which are used by a number of large oil companies to manage assets.
Stochastic, which was founded in 2008 by Dr Andrew Wadsley and Leo Mullins, says its existing modelling programs are substantially faster than competing simulation software.
Dr Wadsley formerly lectured in petroleum engineering at Curtin University.
Stochastic chairman Garry Willinge said the acquisition broadened the company’s reservoir assurance services.
“The integration of PSI’s commercially proven technology with our existing suite of reservoir engineering and production planning services will significantly enhance our reservoir description, history matching and production forecasting capability,” he said.
“Oil and gas companies using our enhanced technology will benefit by significantly reducing drilling costs and uncertainties, while also dramatically improving oil recovery over using existing approaches.”
Brisbane-based PSI managing director John Davidson, who will become a shareholder in Stochastic as part of the deal, said he hoped it would enable the technology to penetrate new regions.
He said it would leverage from SSL’s existing business.
“The ability to integrate with SSL’s ResAssure service and the digital delivery platform utilised by all SSL’s solutions is highly relevant and advantageous,” Mr Davidson said.
“SSL’s technology significantly reduces operating costs and enhances recovery, which is more important than ever during this low oil price regime.”