Following the successful completion of two customer-partnered test programs in the U.S. and Canada, Trinidad Drilling Ltd. has acquired completion optimization software product GMXSteering for US$2 million.
The software and associated licenses use surface measurements recorded while drilling to assess rock properties and position the wellbore for optimal frac stimulation and production.
Trinidad is already marketing the product to its customers, with revenue streams including both lump sum per-well fees and fees tied to dayrate.
The acquisition further expands Trinidad's technology platform and follows the company's strategy of leveraging technology with its existing fleet to generate strong returns with lower capital investment, the Calgary-based company said in a statement.
The increased capital will also accelerate software-licensing revenues and provide additional customer adoption of Trinidad's enhanced technology platform.
In response to anticipated customer demand, Trinidad has increased its Electronic Data Recorder (EDR) manufacturing program, adding an additional 30 units to its planned program for 2018. By deploying additional EDRs to its fleet, Trinidad increases the exposure of its technology platform to its customer base.
The accelerated manufacturing program brings the total number of units being built this year to 50 and adds an incremental US$2.6 million to the company's 2018 capital expenditure budget. Currently, Trinidad has 13 EDR units deployed in its fleet, with an additional nine units deployed on third-party rigs.