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The strategy

ValkCap is building a low-cost, low-risk portfolio of oil producing assets by opportunistically and aggressively seeking assets for acquisition that have proven production but are of lesser value to its current owners due to strategic misalignment or high costs.

ValkCap continues to benefit from the cyclical nature of the oil & gas industry. The cyclical nature of the upstream business accounts for “low oil price environments”. In a low oil price environment, capital expenditure is often halted or deferred and assets are divested. Ongoing production and drilling operations are scrutinized and, if out of the money or marginal, often halted or minimized. In addition, many smaller, conventional onshore fields have seen underinvestment since the 2009 and 2014 price drops, mostly due to a shift of focus and capital to shale oil opportunities and other unconventional areas, leaving conventional fields with a significant development upside.

We target low-cost, non-core, none-strategic assets for exploitation:

Acquiring low-cost assets is the upstream business model that is most sustainable through oil price cycles.
Opportunistically and aggressively seeking PDP, PNP and low risk PUD opportunities with low marginal costs that are non-core, non-strategic or even distressed.

We benefit from the cyclical:

We leverage low cost oil environments by pursuing deals counter cyclic. A low oil price environment provides excellent buying opportunities.
We actively manage exposure to the downside of the cyclic industry and position ourselves to benefit from the upside by applying fundamental and technical strategies, using the right financial instruments.

We are an investment platform for equity partnerships:

ValkCap aims to act as General Partner in oil & gas investment funds.
This allows for scaling and opportunistic positioning of the business.

We leverage strong industry networks and have stablished a solid network of advisors and local partners.