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Nabors takes 14% stake in Quaise Energy
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Nabors Industries completed a $35 million strategic equity investment in Quaise Energy, becoming Quaise’s largest shareholder with a 14% fully diluted stake, Nabors and Quaise said on 27 August 2026. The investment was issued through roughly 392,000 shares of Nabors common stock and is part of Quaise’s Series B financing round. The agreement gives Nabors exclusive rights to deliver drilling services to Quaise and establishes a joint framework to evaluate drilling‑system integration, rig engineering, field deployment and automation as Quaise advances Project Obsidian in Oregon.
Key takeaways
- Investment size: Nabors invested $35 million in Quaise Energy and received about 392,000 shares of Nabors common stock.
- Ownership stake: The transaction made Nabors Quaise’s largest shareholder with a 14% fully diluted stake, the companies said on 27 August 2026.
- Project Obsidian targets: Quaise intends the first phase of Project Obsidian to deliver 50 MW of capacity, with later phases planned to increase output by up to 1 GW.
- Operational link: A Nabors PACE-B rig is already drilling at Project Obsidian under the strategic framework established by the investment.
Table of contents
Deal terms: what Nabors bought and how
Nabors Industries completed the equity purchase as part of Quaise Energy’s Series B round, taking a 14% fully diluted interest in the geothermal-drilling technology company, the two companies said on 27 August 2026. The investment amounted to $35 million and was effected through issuance of approximately 392,000 shares of Nabors common stock. The companies presented the transaction as strategic: Nabors becomes Quaise’s largest shareholder and gains a commercial relationship that ties its drilling fleet and engineering capability to Quaise’s advanced drilling program.
The financing structure cited by the companies links ownership with operational collaboration rather than a passive holding. That structure is intended to align Nabors’ rig resources and engineering work with Quaise’s technology development, and the share issuance gives Nabors both an equity stake and a commercial channel into early project deployments without a public equity offering by Quaise.
How Quaise’s hybrid drilling works and why it matters
Quaise described its method as pairing conventional rotary drilling with millimeter‑wave directed energy to reach hotter, deeper geothermal targets than current techniques can access. The company says the hybrid platform uses rotary drilling for mechanical penetration and directed‑energy heating to weaken or vaporize rock at extreme temperatures, enabling entry into superhot systems beyond the reach of today’s geothermal wells.
Accessing hotter temperatures and greater depths is important because heat at higher temperatures increases power density and can open sites previously unsuitable for commercial geothermal. Quaise and Nabors position Project Obsidian as the testbed for this method: the companies say the campaign will evaluate whether the hybrid drilling platform can deliver the drilling rates, wellbore integrity and repeatability required for utility-scale deployment.
Project Obsidian and the operational partnership
A Nabors PACE‑B rig is already operating at Quaise’s Project Obsidian in Oregon. Quaise said it aims to deliver the first commercial superhot enhanced geothermal system at Obsidian. Quaise plans an initial phase designed to produce 50 MW of electricity, with later stages intended to add as much as 1 GW more. The on‑site Nabors rig reflects the deal’s operational focus: the agreement grants Nabors exclusive rights to provide drilling services for Quaise’s projects.
Beyond the exclusivity, the framework the companies described includes joint evaluation of drilling-system integration, rig engineering, field deployment and automation. Those activities aim to convert a lab or pilot technique into a repeatable field process capable of supporting multiple wells and, eventually, commercial power plants.
Implications for geothermal drilling commercialisation
The arrangement links Nabors with Quaise’s deep‑drilling technology; if field trials validate the approach it could accelerate the move from demonstration to commercial deployment. Nabors’ capital and engineering capabilities are intended to lower execution risk on well construction, while Quaise’s directed‑energy concept targets access to superhot geothermal resources. Nabors and Quaise said they will assess integration of rigs, downhole tools and automation required to deliver repeatable wells.
If Project Obsidian meets its technical and operational targets, it would provide an example of a contractor–technology developer tie-up that accelerates field learning and cost reduction. The companies framed the investment as both strategic and operational — Nabors gains equity upside and deployment opportunities, and Quaise gains access to established drilling capacity and rig engineering expertise.
How the partnership could play out
The case for
- If Project Obsidian proves the hybrid drilling method at scale, Nabors’ rig fleet and engineering could accelerate repeatable well delivery and cost learning, helping Quaise move from pilot to commercial phases.
- The equity stake aligns incentives: Nabors’ operational focus combined with Quaise’s technology may speed integration of rig modifications, downhole tools and automation required for high-temperature drilling.
The case against
- Millimetre-wave and directed-energy drilling remain unproven at commercial depth and temperature; field campaigns can reveal unexpected rock behaviour, tool reliability issues or engineering constraints that slow adoption.
- An exclusivity arrangement concentrates early deployment with a single contractor, which can cut time to market if problems are solved but could also create bottlenecks if rig availability, tooling or engineering capacity is insufficient.
What to be careful about
- Technical risk from scaling millimeter‑wave heating and hybrid drilling methods to commercial well depths and superhot temperatures.
- Operational risk if rig modifications, downhole tools or automation fail to achieve required run lengths and wellbore integrity.
- Concentration risk from the exclusivity arrangement: delays in Nabors’ integration or rig availability could slow Quaise’s project schedule.
- Regulatory or permitting delays for Project Obsidian in Oregon that could extend timelines for demonstration and power deployment.
The bottom line
Nabors’ $35 million Series B investment, together with an exclusivity framework, connects Nabors to Quaise’s early‑stage deep‑drilling technology. Under the arrangement Quaise gains access to Nabors’ rigs and engineering support, and Nabors acquires equity exposure to a potentially higher‑value geothermal resource. The immediate test is Project Obsidian: the PACE‑B rig campaign will evaluate the hybrid approach, and if Quaise and Nabors overcome integration and automation challenges the partnership could speed development of repeatable wells. If technical, operational or permitting obstacles arise, Quaise and Nabors will need further iterations before commercial scale is achievable.
What to watch
- Watch for field results from the Project Obsidian drilling campaign; no date has been set.
- Watch for announcements of further collaboration on rig engineering and drilling-system integration between Nabors and Quaise; no date has been set.
- Watch for company updates on Quaise’s Series B milestones or commercial deployment plans for Project Obsidian; no date has been set.
Frequently asked questions
How much did Nabors invest in Quaise and what stake did it receive?
Nabors invested $35 million and received approximately 392,000 shares of Nabors common stock, giving it a 14% fully diluted stake, the companies said on 27 August 2026.
What is Project Obsidian’s near-term capacity target?
Quaise said the initial phase of Project Obsidian is designed to produce 50 MW of generation, and that subsequent phases could expand capacity by as much as 1 GW.
What drilling technology is Quaise developing?
Quaise is developing a hybrid drilling system that pairs conventional rotary drilling with millimeter‑wave directed energy to access deeper, hotter geothermal formations.
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