Generally avoiding the exploration model, the Fund's emphasis is on development, enhancement (EOR), exploitation or optimization with above average upside and medium-term liquidity.
Katana brings more than just capital to an investment. Our team draws on a history of technical, investment, business and operating experience that has produced a strong record of accomplishment over the decades. We actively assist portfolio company management teams in delivering intended results, and in some cases, build a team from the ground up in order to seize a vetted opportunity. Katana intends on making at least 5 to 8 investments.
The small size of our Fund allows a focused and exhaustive due diligence and screening process to be concluded efficiently, and the decision to execute on superior investments to be reached quickly, avoiding the bureaucracy that slows down many larger capital sources.
This ability to adopt a rapid pace, combined with the relatively small size of the Fund, grants us access to projects not yet of a size to be on the radar of larger capital sources. Large firms often have mandates not to get involved in investments below a specific dollar amount, regardless of the low risk and strong upside profile a prospective asset may have.
Our team leverages its extensive network of relationships with engineers, entrepreneurs and others in the energy-related financial community. In some cases we have the competitive advantage of knowing the management teams personally. This network combined with our team's own technical expertise and deep industry experience is used to identify and secure the most attractive opportunities.
Emphasis is on development, enhancement (EOR), exploitation and optimization with the general avoidance of exploration risk.
Significant opportunities currently available result from a) the current limited access to debt and reduced commodity price environment, b) the junior oil and gas model of build and sell and c) marketplace dislocations and the nature of large production companies with the frequent transfer of responsibility over various assets that often create unrealized value or undervalued divestitures.