Overview

Kaizen Oil is acquiring undervalued oil assets which are suitable for the application of its enhanced oil recovery (EOR) solution. With oil properties trading at a discount to historic multiples and the global market for effective EOR measured in the trillions of dollars, the timing is ideal and the upside is significant.

Kaizen’s technology advantage is best suited to mature oil assets which are either under waterflood or suited to such. This sector of the market is out of favor, making it particularly ripe for acquisition. The high production increases and low incremental cost afforded through our EOR facilitate geometric profit growth, which will in turn significantly increase the underlying value on the Company’s holdings.

Market

Per the US Department of Energy, as much as  65% of the world’s oil is “trapped”, as it cannot be recovered through current primary and secondary oil recovery methods. The market value of trapped oil globally is staggering, widely measured in the many trillions of dollars. As such, incremental increases attained through efficient tertiary (EOR) recovery carry a high economic impact .

The Kaizen EOR has been successfully implemented globally on fields with defined geological characteristics. The Company estimates that more than 25% of global fields have these characteristics, making them ideally suited to the technology.

The sheer breadth of this market, combined with the current low demand for our target sector, allows for Kaizen to be very discriminating on properties and pricing.

The Technology

Through a unique alliance agreement, Kaizen is leveraging is a highly effective proprietary Organic Enhanced Oil Recovery (OEOR) solution owned and controlled by its technology partner. The science is based on injecting an organic microbial solution into a given oil reservoir, which in turn “loosens” previously trapped oil, allowing it to flow more freely and thereby increasing production and accessible reserves.

The Kaizen EOR does not simply accelerate recovery, but instead allows for the recovery of otherwise inaccessible oil, transforming the economics of a given asset. 

Economic and Implementation Advantages

Environmental and Regulatory Advantages

Economic Impact

Structure and Finance

Corporate Structure
Acquisitions will be made in independent LLCs or equivalent (international). This structure facilitates partnerships in all geographies while limiting liability and Kaizen’s overhead.

Investment Banking
Retained Chicago based investment bank for debt and equity financing of its acquisitions. Kaizen’s lead banker has 30+ years of experience, having placed over $200B in debt and served as CFO for US based oil E&P company.

Team

Kaizen has attracted and assembled extremely high level professionals from the world of oil, technology and finance to execute on its mission.

Charles Kohlhaas, PhD, PE | Dr. Kohlhaas has had a remarkable career in oil and gas which spans more than 4 decades and includes an extensive worldwide background in operations, management, engineering and academia.

Lawrence Alioto |  Alioto has 30 years of experience in finance, technology, and corporate management and served as President of a technology firm which addressed nuclear smuggling in the global maritime supply chain.

Christopher Brown, PE | Chris has 20+ years of both operational and finance experience in the oil industry including founding the Bank of Montreal’s International Energy Group to high-level global operational work with Burlington Resources, ConocoPhillips, and Talisman Energy.

Richard Rodgers |  Rick is the Senior Managing Director with investment bank Madison Street Capital. Madison Street Capital Rodgers has placed in excess of $200 billion in his 40- year career which included serving as President & CEO for Bank of America Credit Corp.

Michael Gregory | Michael is currently the President and CEO of Nektar Energy and Founder and Managing Member of Pentergy Oil, LLC. Michael is a highly accomplished energy entrepreneur, having worked and/or lead investments in most sectors of the energy industry.

Sameer Uplenchwar | Sameer has over 20 years of financial and energy banking experience including time with GMP, Global Hunter Securities (now Seaport Global), Surveyor/Citadel, Morgan Stanley Energy Group and KPMG.

Partnerships & Deal Flow: North America

• Canada –
  Kaizen Oil has agreed to form a joint venture with Calgary based Helios Corp and its operating team to form Canzen Oil. On behalf of Canzen, Helios has secured an exclusive engagement on a $25MM acquisition in Alberta. Canzen has a pipeline of over $400MM of like deal flow in the region. 
• United States –
  Kaizen has engaged with operators in the Southern and Midwest United States to address the $500MM+ of initial ‘off- market’ deal flow sourced by Kaizen President Dr. Charles Kohlhaas. 

 Partnerships & Deal Flow: International

• Colombia –
  Kaizen has formed a partnership with a mining expert and former Colombian operator to exploit the oil rich Colombian market. Kaizen’s partner for Colombia generated a 4.5X return over 18 months on an enhanced recovery in the 2010 timeframe and still holds high level information on 156 target properties in the geography.
• Ghana – 
  Kaizen is forming a partnership to exploit its EOR across Ghana’s significant oil production and reserves. Direct contact with the GNPC, the Ghana National Petroleum Corporation is being driven by Kaizen’s investment bank, which has offices and high level contacts in the region.

 Partnerships & Deal Flow: Offshore

Offshore –
Kaizen is actively team building and partnering with offshore experts for deal flow, operating and liability management. In addition to the efforts in Ghana, the Company is currently vetting offshore opportunities in California (Federal leases), Gulf of Mexico and the North Sea. 

Kaizen’s Competitive Edge

Kaizen Oil holds a significant technology advantage with unfettered access to a developed and operational $40 million technology which significantly improves the economics of its target market.

Technology: allows for access to opportunistic oil assets and significant profitability

Team: Kaizen internal team of oil and finance experts for execution
 

Investment Banking: Retained banking relationship for funding of acquisitions

Partnerships / JV's: Established partnerships with successful oil operators in oil rich regions worldwide.

Corporate Structure: Allows for scalability, unlimited expansion and significant growth