A remarkable chapter in Fishbones story
24 January 20204
Commentary by Eirik Renli, Fishbones CEO
I find it a bit daunting to use the word “success” as I tend to be cautious with such terms. But for 2023 there is no other word to describe our phenomenal development.
As we close the chapter on 2023 and step into the first days of 2024, I find myself reflecting on the remarkable journey Fishbones has undertaken in the past year. It has been a period of unprecedented growth, innovation, and strategic positioning for the company.
The past year witnessed a huge buzz of activity at Fishbones, with an impressive 50% increase in revenue from compared to the previous year. Our global footprint expanded to 15 countries, including the strategic entry into Brazil, highlighting the effectiveness and demand for our well stimulation solutions on an international scale.
Despite the exponential growth, all our installations in 2023 achieved operational success. In my world that means two things: Firstly, operational success with minimal downtime, no incidents, or show-stopping challenges. And secondly, that we can document tangible increases in production efficiency. Additionally, there has been lots of positive feedback from our valued clients, reinforcing our commitment to excellence.
Controlling and extending reach
The principles of our technology are easily explained using our logo and company name. Just as bones radiate laterally from the spine of a fish, our Fishbones needles extend laterally from subs in the drill string, penetrating and connecting reservoir layers to increase production substantially.
Our drilling and jetting needles are constantly evolving. December 2023 saw initial production with Fishbones slotted needles starting at the Vallhall field. No numbers are in yet, but in addition to significant cost savings for the operator, we expect considerable potential production gains in a challenging reservoir with loose substrates prone to migrating into the well stream. Our new slotted needles are designed to prevent this migration, with major benefits for well integrity.
While we've consistently delivered high-quality solutions, our focus on continuous improvement persists. Collaborating with clients across locations, we prioritize reliability, robustness, and ongoing product development. For 2024, we will be focusing on controlling the orientation of our needles for higher precision and on extending the reach of our needles.
The extension project is being conducted in collaboration with our partner, Aker BP. And as we have previously communicated, the research is bolstered by a 1,25 MNOK grant from The Norwegian Research Council. I am proud for Fishbones to be recognized in this context as a company focused on reduced emissions and improved efficiency in the oil and gas industry.
From an ESG perspective, improving recovery, reducing platform time and contributing to up to 95% lower emissions is particularly important for Fishbones. From a HSEQ perspective, I am happy to say that our commitment to safety remains unwavering, with no recordable incidents in production over the 12 years since Fishbones' inception.
Long term growth
Looking ahead, Fishbones is positioned for significant growth as outlined in our comprehensive three-year strategic plan. We anticipate a substantial increase in revenue, projecting growth between 200% and 300% from 2023 to 2026. We remain committed to the Middle East, with our office in Abu Dhabi marking its first anniversary in October last year with a record-breaking 30 installations completed.
Our other geographical priorities include markets in China, India, Mexico, Brazil, the USA, and Northern Europe. The fruition of our long-term collaboration efforts with Austria's OMV Group set for Q1 2024, is a testament to our dedication. Additionally, we are exploring opportunities in geothermal and carbon storage wells, where we see a potential for Fishbones technology.
Our Fishbones team has grown significantly, expanding from 29 employees to 44 during the past year, strategically scaling our workforce in sales, production, and operations. At Fishbones, we foster a collaborative, multinational team culture, boasting 16 different nationalities and a commitment to breaking down silos. We would be nowhere without our people, and we intend to recruit actively in 2024 in accordance with our long-term growth ambitions.
In the fall of 2024, we will be moving to new facilities at Forus, Stavanger. More office space and larger workshops, production and testing areas will provide the necessary infrastructure to accommodate our ambitious plans.
Fishbones' proprietary technology continues to be the driving force behind our success in 2023. We have yet again been strengthened in our belief that Fishbones technology is an integral part of early-stage field planning and development, not an afterthought for flagging wells.
We are poised to elevate our status as the preferred choice for well stimulation solutions, solidifying our reputation as a pioneering industry leader. As we navigate the complexities of the industry, we are confident that our commitment to excellence will lead us to even greater heights in the years to come.
Looking back on 2023, I would like to thank all customers, stakeholders and of course our entire Fishbones team for a truly rewarding year. I hope you all had a happy holiday season and are well under way with another exciting year!