The money will fund the development of a wireless data communication tool for use in wells, which Raptor describes as "a technology to deliver an intelligent bi-directional wireless communication system with low latency and high data rate transmission capabilities".

The project is the first to receive funding through the Seek and Solve program, a partnership between Statoil and Scottish Enterprise aimed at encouraging technological innovation from smaller companies.

Scottish Energy Minister Fergus Ewing said the grant would support this 17-month project aimed at improving the performance and reliability of existing oil and gas sensory systems.

"This new funding will enable the company to refine and test its product design and performance by replicating real-life conditions.

"Innovation is critical if we are to maximise recovery of the remaining reserves in the North Sea and this project demonstrates the Scottish government's commitment to a sustainable and certain future for the oil and gas sector."

Statoil believes wireless telemetry has the potential to revolutionise in-well communication, head of Statoil Technology Invest Richard Erskine said.

"Hopefully Raptor is only the first of many such funding opportunities we will cooperate on as we continue to hunt for good ideas across Scotland," he said.

Raptor CEO Gordon Cowie said the company would seek to refine its "potentially groundbreaking" technology by replicating real-life conditions at a purpose-built test site in Aberdeen.