Kaisen to Capitalize on Current Market Turmoil through Strategic Drill Bit and Acquisition Activity
CALGARY, Nov. 23, 2015 /CNW/ - Kaisen Energy Corp. ("Kaisen" or the "Company") is pleased to announce a newly formed strategic partnership with KERN Energy Partners ("KERN") through a sizeable private equity investment in the Company to fund the strategic development of existing assets and to capitalize on potential present and emerging acquisition opportunities.
Since the Company's inception in March 2013, Kaisen has been led by executives Cameron King (President and CEO) and Jeff Holmgren (Senior VP & CFO) along with Chris McGinnis (VP Operations and Engineering) and Andy Kramchynski (VP Exploration and Geology). The team has extensive experience with conventional heavy oil in the Western Sedimentary Basin with a collective of former roles including Husky Energy, Canetic Resources and Penn West Petroleum.
Kaisen CEO, Cameron King, said, "This initial investment from KERN marks a significant step in our Company's evolution and will equip the Company with significant resources to continue with our existing business plan as well as to capitalize on the present market opportunities rising out of the current industry turmoil."
Since the Company's inception in March 2013, the team has assembled a portfolio of conventional heavy oil assets within the Lone Rock and Edam areas of the Saskatchewan heavy oil fairway. The Company's existing assets contain a significant drilling inventory of horizontal wells and longer term EOR opportunities on a concentrated 100% working interest land base containing in excess of 200 million barrels of original oil in place. The team's heavy oil expertise has been demonstrated through the organic development of the Company's initially acquired assets from 300 bbl/d to a peak of 1,800 bbl/d while maintaining a strong balance sheet with minimal bank debt.
Kaisen Senior VP and CFO, Mr. Holmgren, emphasized, "our strategic partnership with KERN assures our ability to pursue a nearer-term counter-cyclical approach wherein significantly lower development costs coupled with attractive acquisition metrics will provide multiple complimentary paths towards the creation of substantial shareholder value now and in the longer-term."
Mr. Dave Pearce (Deputy Managing Partner, KERN), Mr. Chris Hooper (Managing Director, KERN) and Mr. Richard Ramsay (COO of Baytex Energy) have since joined the board of directors alongside existing directors Evan Hazel (chairman), Ed Chwyl, Lowell Jackson and Cameron King.
Kaisen is a privately held exploration and production company headquartered in Calgary, Alberta. For more information, visit www.kaisenenergy.com or contact the Company at (587) 350-5760
About Kern Energy Partners;
KERN is a leading independent energy sector private equity firm based in Calgary, Alberta. KERN manages KERN Energy Partners I, II, III and IV Funds, which are private equity funds focused on Canadian energy sector resource and infrastructure development, with the flexibility to invest in US and international energy sector opportunities. KERN currently has more than $1.6 billion of assets directly under management as well as a significant co-investment program. For more information about KERN, please visit www.kernpartners.com.
Forward-Looking Information Advisory
This press release provides our assessment of Kaisen's future plans and operations and contains forward-looking information including: plans to capitalize on acquisition activities; the Company's ability to develop its existing assets; the Company's ability to aggregate complimentary assets at attractive prices; Kaisen's ability to be a successful operator in a low commodity price environment; the Company's drilling activities, including the proposed capital projects for Edam and Lone Rock; competition for, among other things, capital and acquisitions of reserves, additional petroleum and natural gas assets and undeveloped lands; incorrect assessments of the value of acquisitions; risks related to the environment and changing environmental laws in relation to oil and gas operations; geological, technical, drilling and completions, processing and handling issues associated with petroleum and natural gas development activities by third parties; claims made or legal actions brought or realized against the Company or its properties or assets; a failure by the Company to hire or retain key personnel; general economic, market and business conditions; and changes in tax or environmental laws or royalty or incentive programs relating to the oil and natural gas industry.
Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; as the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity prices and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
With respect to forward looking information contained in this press release, we have made the following assumptions, including the success of optimization and efficiency improvement projects, including the availability of capital, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the Company's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be inaccurate and, as such, undue reliance should not be placed on forward-looking information. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained herein is expressly qualified by this cautionary statement. Kaisen does not assume any obligation to publicly update or revise any forward-looking information to reflect new events or circumstances.
SOURCE Kaisen Energy Corp.
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Cameron King, President and Chief Executive Officer, firstname.lastname@example.org; Jeff Holmgren, Senior VP and Chief Financial Officer, email@example.com; Kaisen Energy Corp., Telephone: (587) 350-5760, Website: www.kaisenenergy.comCopyright CNW Group 2015