Oilfield Chemical Business -Enhanced Oil Recovery

Overview: Project is a Heartland-based oilfield chemical treatment provider with 36+ years of experience, specializing in treatments for water shutoff and enhanced oil recovery. Its proprietary system delivers faster, deeper treatments than traditional methods, resulting in strong oil production gains, particularly in natural water-drive and water-flood reservoirs. Operating from a central U.S. facility with five fully equipped mobile units, it is highly scalable and holds a dominant market share in its core region. The Company’s blend is pumped down-hole and is most effective in areas of rampant water-production, with case studies demonstrating consistent customer success. Management notes that ~90% of revenue is tied to production enhancement in mature fields, with the remainder from new wells. Project's field activity is most concentrated in Wyoming’s Big Horn Basin and Powder River Basin, Canada, and throughout Kansas (Arbuckle/MS Lime, etc). Many other successful applications of the company’s proprietary IOR (Improved Oil Recovery) and EOR (Enhanced Oil Recovery) chemistries have occurred in Oklahoma, Texas, and the Illinois basin area of Illinois and Indiana, as well as Michigan. Backed by a seasoned team and proprietary ROI-tracking software, the Company is well-positioned for continued expansion in high-potential basins, and Canada has been very impactful in 2025.

Business Highlights:
• Competitive Advantages: The Company combines its flagship proprietary chemistry with in-house-built treatment equipment, enabling faster, deeper, and more effective conformance jobs than traditional dry-gel providers. Its exclusive decision-modeling software enhances customer ROI visibility, while rapid deployment capabilities drive continued regional dominance.
• Customers/Market Channels: The primary customer target for business would be E&P companies. However, because of the companies long standing reputation for producing outstanding results, much repeat business occurs, as well as referrals by established customers to new clients. Other regions that could represent growth targets for OilChem are the SCOOP/STACK in OK, DJ Niobrara in CO/WY, and the Permian Basin in West Texas. Canada has come on strong for the company.
• Management/Employees: The company has approximately 12 employees, led by a highly experienced CEO and technical team with decades of oilfield service expertise. The team is lean, reliable, and well-equipped to execute specialized field treatments across diverse geographies.
• Growth Opportunities: Further expansion into markets like the Permian, Eagle Ford, Haynesville, etc. offers strong potential, supported by mobile crews and proven treatment performance. Adding sales personnel and field units could double revenue within three years. The Company’s centralized facility and in-house capabilities provide room to scale without major cap-ex.
• Financials: The company founder has been in the space since 1989 and runs a lean, efficient model with in-house-built equipment and mobile field crews. All revenue is project-based, and no single customer accounts for more than 20% of annual sales. The business maintains strong geographic and service-line diversification, supporting stable demand across multiple U.S. basins. Through mid-October, Revenue booked was $4.5m. Management projects $5m in FY2025 top-line.