PrePad secures USD $2.8m to expand in drilling sector

PrePad, an energy technology company based in Calgary and Houston, has secured USD $2.8 million (CAD $3.9 million) in seed funding in an effort to expand its presence and capabilities in the oil and gas drilling sector.

PrePad specialises in optimising cost and time estimation in drilling and completions. The funding round, which combines both dilutive and non-dilutive investments, includes participation from key investors such as Devon Energy, Chevron Technology Ventures, and Alberta Innovates. The company plans to use these funds to strengthen its market presence and accelerate product development.

"We're very pleased to complete this round of funding, which represents a significant milestone for us as we establish a new market category for drilling and completions software," stated Sean Hervo, Co-Founder and CEO of PrePad. "With the seed investment, we have the support and resources needed to deepen our U.S. market presence, bolster our go-to-market organisation, and accelerate product development. We've built a robust software solution that has proven its value to some of the world's most innovative energy companies. As we enter a growth phase for the company, we invite new clients, partners, and other energy solution providers to join forces with PrePad, the industry standard in this emerging market space."

The seed investment was structured with contributions from both strategic investors and partners. Devon Energy served as a strategic lead investor, with additional backing from angel investors including Deane Stewart and Dan Magyar. Further support was provided by Arcurve, a technology advisory and software development company, as well as non-dilutive funding from organisations like the Business Development Bank of Canada and National Research Council of Canada's Industrial Research Assistance Program. PrePad has accumulated a total of USD $3.7 million in funding to date.

The company plans to extend its reach by delivering software solutions to a number of industry leaders, including Chevron, Devon Energy, Shell Canada, and Teine Energy. Its proprietary platform aims to optimise well manufacturing economics by analysing cost, time, and production interdependencies, using a completions cost and time simulation model.

Revenue generation for PrePad predominantly comes from client subscriptions, with multiple orders scheduled for execution in 2025. The company anticipates a substantial increase in active users, reinforcing its position as a first-mover in the market.

"As we enter our growth phase, PrePad's product roadmap remains laser-focused on building software with the best balance of sophistication and simplicity and delivering value-maximising solutions that address the evolving challenges of the energy industry," explained Brandon Eidson, Co-Founder, President, and CPO of PrePad. "Almost daily we hear from clients how PrePad has helped them streamline a workflow, optimise a design, or settle a debate. We look forward to accelerating that with new clients and partners as we further refine and scale our offerings. Our goal is to enhance energy workers with unprecedented simulation software."

PrePad has also been highlighted for its achievements in the energy sector, having been selected for Chevron Technology Ventures' Catalyst Programme in 2024. This recognition underscores the company's commitment to advancing technology within the industry.