1. LUCA ENERGY INVESMENT SEMINAR
By Fiona Tran
Fund Manager
Luca International Group LLC.
2012.10.16
2. Fiona Tran
Fund Manager
Fiona joins LUCA with over 5 years of experience in Finance and Real Estate. She
started her career as a real estate agent, doing transactions with high end clients
including: Fortune 500 C-level executives, investment bankers, corporate
attorneys and business owners. In addition to getting her Bachelor’s degree in
finance, Fiona also obtained her NASD Series 7 and Series 63 license and
received investment banking training on Wall St.
3. Disclaimer
INFORMATION PURPOSES ONLY
NOT INTENDED TO SOLICIT INVESTMENTS
NO ASSURANCES AS TO ACCURACY
INFORMATION PRESENTED MAY CHANGE AT ANY TIME
PAST PERFORMANCE NOT INDICATIVE OF FUTURE PERFORMANCE
NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER
HIGH DEGREE OF RISK
CAREFULLY REVIEW RISK FACTORS AND INFORMATION
DO NOT PROVIDE LEGAL, ACCOUNTING OR INVESTMENT ADVICE
INFORMATION IS CONFIDENTIAL AND MAY NOT BE SHARED
4. Presentation Agenda Today
• Overview of the oil & gas industry
• How LUCA got started
• What LUCA offers
• LUCA projects
• Technology
• Summary
• Q&A
»
6. Misconception vs. Facts
1) High risk industry
Industry success rate, 90%
2) U.S. doesn’t allow exploitation of local oil
100%Tax Benefit
3) Big Enterprises Domination
SMEs Produce 50% oil and 60% gas
4) No Oil to drill
-22 Billion barrels of proven oil reserve in the U.S. - $1540 Billion
industry (22 billion barrels of oil x $70 per barrel)
-214 Trillion MCF gas reserves in the U.S. - $642 Billion industry
(214 trillion cubic feet of gas x $3 per thousand cubic feet)
17. Gulf Coast Has Long Production History
The Lucas Gusher, 1901 Boiler Avenue, Spindletop, Texas 1903
26
Jan 10th, 1901-- the birth of modern oil industry
"Black Gold" erupted from 1139 ft depth under a hill The densest drilling in US.
(Spindletop salt doom) to a height >150 feet. At By 1903, more than 400 wells had been drilled on the dome.
100,000 barrels of oil a day, the gusher tripled U.S. oil In 1925, the Second boom with discovery at ~2500ft
production overnight. The gusher was responsible for By 1927, production reached its peak of yearly 21 million barrels.
creating many companies, including Gulf Oil, Amoco, In 1960s, deep oil production achieved in depth of ~5000 ft
Texaco, Exxon. By 1985 Over 153 million barrels of oil had been produced.
Exploration/Production is still going on in 2009!
20. Management Team
Paul Wong John Han Anthony V. Pollace Ken Wong
VP of Exploration VP of Production CFO Controller
Caroline Cao Amy Fleming Lily Lei Angie Yip
In-House HR Director LA District Manager Director of Marketing
General Counsel
21. Management Team
Bing Yang – President and CEO
Ms. Yang has over 20 years of management and financial service experience. She
brings a broad understanding of the oil and gas industry and specializes in the areas of
project management, operations, and acquisitions of mineral properties.
Paul Wong – Executive Vice President of Exploration & Production
Paul is a seasoned and skilled Geophysicist and Geologist with over 30 years of experience in the Gulf
Coast development and exploration area. He previously worked for both major and independent oil
companies including: BP, Mobil, Nexen, and King Ranch.
John Han - Vice President of Production
John has over 30 years of successful petroleum engineering and management experience at
a global level. He held key positions at major companies such as: Forest Oil, Halliburton,
Hunt Oil, Conoco and Kerr McGee Corporation.
Anythony Pollace – Chief Financial Officer
Tony has over 30 years experience in finance and management, as CFO, CEO and COO.
He led and advised energy resource and high tech companies from startup to public fortune
50 status.
22.
23. LUCA International Group
Corporate
Headquarters
Fremont, CA
HK Beijing
Los Angeles
Oakland
北京 Houston, TX
Operations
25. Company Structure
Luca International Group LLC
(Holding Company)
Luca Luca Asset Black Gold
Resources Luca Management Petrol Global Oil Investment
Group LLC Operation Inc. Capital LLC Capital Ltd. LLC
（ Operator LLC (LA) EB5 Oakland (CA) (Hong Kong) (Beijing, Chin
TX） CA a)
Luca Luca To-
Energy Sinotex Kalon
LBSJV
Fund LLC. ($300M) Energy LLC
( RC TX) ($30M)
Luca
Luca I, LP
Oil, LLC.
($50M)
($43M,TX)
26. Luca Success Factors
Best investment opportunities in North America.
Combined over 100 years management experience
Oil and Gas Projects located in lucrative GOM
Partner with high credibility INDUSTRY
Operators/Vendors
27. Risk Management
• Strategy that
focuses on
developmental or
mature oil wells
• Latest Technologies:
3-D seismic
imaging, directional
drilling & recovery
techniques
• Extensive field
studies and data
• Strategic partnership
to maximize profits &
reduce risk
• Diversification
among multiple wells
• Talented team of
industry veterans
29. Investment Projects at LUCA
Project Name $43 Million $20 Million $300 Million EB-5
(2010-2012) (2012) (2013) Immigration
（2011-2021）
Minimum $330k $50K $10 Million $500K or
Investment 1Million
Amount
Low Risk, High return Economic Green card
Features Profit potential, Scale, 3% Annual
Generating, Reduce Investment Return
High return Taxable Diversified 5yr Payback
potential Income Period
1st time Tax Shelter Accredited Immigration
Suitable for Investors Investors
Status Closing Starting In-Process 40 Units Left
30. Luca Oil LLC
($43 Million Fund)
Financial Section
2012.10
31. LOL $43 MM Fund Offering
• Investment Available: $3,300,000
• Price: Per Unit $11,000
• Units Available: 300
• Documents: PPM and Subscription Agreement
• Reg D Offering
• Compliant with all Federal/State regulations
32. $43 MM Fund (LOL) Highlights
Payback period: 4 Years
10 Year total return: 2.4 times
10 Year Internal Rate of Return: 21%
Monthly distribution after 6 months
No management fee until investor recoups initial investment
Invest in total 20 wells
Notes:
Assumptions of Financial Model is based on current economic analysis. Future financial performance is not guaranteed.
33. $43 MM Fund (LOL) Pro Forma
Oil Gas Investment Investment Annual Accumulated
Investment Gas Investment Return from Profit after Accumulated Return Return
Year Oil Price Profit/yr Price Profit/yr Oil+Gas Adjustment Profit % %
1 $80.00 $6,178,867 $2.00 $277,713 $6,456,580 $7,830,746 $7,830,746 18% 18%
2 $83.44 $11,600,205 $2.08 $518,879 $12,119,085 $13,355,834 $21,186,580 31% 49%
3 $87.03 $10,889,113 $2.15 $484,737 $11,373,850 $12,486,924 $33,673,504 29% 78%
4 $90.77 $10,221,610 $2.24 $452,841 $10,674,451 $11,676,218 $45,349,723 27% 105%
5 $94.67 $9,595,025 $2.32 $423,044 $10,018,070 $10,919,660 $56,269,383 25% 131%
6 $98.74 $9,006,850 $2.41 $395,208 $9,402,058 $10,213,490 $66,482,872 24% 155%
7 $102.99 $8,454,730 $2.50 $369,203 $8,823,934 $9,554,222 $76,037,094 22% 177%
8 $107.42 $7,936,455 $2.60 $344,910 $8,281,365 $8,938,625 $84,975,719 21% 198%
9 $112.04 $7,449,951 $2.70 $322,215 $7,772,165 $8,363,699 $93,339,418 19% 217%
10 $116.86 $6,993,269 $2.80 $301,013 $7,294,282 $7,826,662 $101,166,079 18% 235%
Assumptions:
Invest $43,000,000 in 20 wells with average 45% working interest each. Oil price will increase by 4.3% annually, based on EIA Annual Energy Outlook 2012
Gas price will increase by 3.8% annually, based on EIA Annual Energy Outlook 2012 Oil production will decline by 10% annually.
Gas production will decline by 10% annually. Estimated total oil production from new wells: 920 BOPD/well.
Estimated total gas production from new wells: 1654 MCFPD/well Investment Profit After Adjustment includes net revenue from current producing wells
Notes:
• Year 1 has 180 production days for the15 new wells assuming it takes half a year for drilling and completion.
• Assumptions of the financial model is based on current economic analysis. Future financial performance is not guaranteed.
34. $43 MM Fund (LOL) Track Record
LOL Monthly Distributable Income
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
37. Highlight of Luca Energy Fund Regional Center
1. One and only oil drilling Regional Center in the USA
2. $50M Fund. $13M from LUCA and $37M from EB-5 investors.
3. Minimum $500K investment
4. Gets green card for the whole family (kids under 21)
5. 3% interest starting 2nd year
6. $500k investment will be returned to investor at the end of 5 years
USCIS Link
39. Summary – LUCA prospects
Project Name: West Plumb Bob
Summary Table: West Plumb Bob
Location: St. Martin Parish Southern Louisiana
Onshore Northern Gulf of Mexico Net Acreage: 1200 aces
Comment: One of the most energy rich basins in Est. Prospective Resources 600 BCF 30 MBC
the world.
LUCA Working Interest 92.75%
_____________________________________________
Project Name: SAN JAC Summary Table: SAN JAC
Location: 25 Miles north George Bush Airport Net Acreage 400 aces
Near Houston, Texas
Comment: Two new structural traps discovered Est. Prospective Resources 40 BCF 5 MBC
from 3D seismic survey in 2009.
Working Interest / NRI 60%
_____________________________________________
Summary Table: Belle Grove
Project Name: Belle Grove
Location: Louisiana Net Acreage
847 + 700 (pending)
aces
Comment: Deeper pool wildcat
on the crest of Laurel Ridge. Est. Prospective Resources 359 BCF 26.8 MBC
Working Interest / NRI 100%
40. Summary – LUCA prospects
Project Name: Luca Barfield
– Location: Southwest area of Texas that covers Summary Table: Luca Barfield
an area of approximately 1100 acres. Net Acreage: 100 aces
– Comments: Will drill 12 wells total investment
$16 million Est. Prospective Resources 20 BCF 100 MBC
– Yield an expected cost recovery over the next LUCA Working Interest / NRI 85%
three years.
Summary Table: Bull Moose
– Owns 85% controlling stake in the field.
– ________________________________________ Net Acreage 28 aces
Project Name: Bull Moose Est. Prospective Resources 1.6 BCF 550 MBC
– Location: Louisiana,
Working Interest / NRI 85%
– Comments: Owns 85% controlling stake in the
field.
Summary Table: Pandura
– __________________________________________
Net Acreage 420 aces
Project Name: Pandura
Est. Prospective Resources 25 BCF 10 MBC
– Location: Texas
– Comments: Owns an 60% controlling stake in Working Interest / NRI 60%
the field. Summary Table: Golden Bend
– __________________________________________
Net Acreage 140 aces
Project Name: Golden Bend
Est. Prospective Resources 50 MBC
– Location: Profit Island, Texas
Working Interest / NRI 90%
– Comments: Owns an 90% controlling stake in
the field.
41. Summary-W. Plumb Bob
• PTD 18,100ft
• 5 WX Target Sands
• 600 BCFG + 30MM BBL
• 100 day drilling, 39 days to complete
• Lifespan: Over 15 years,
• If it’s successful, $200 million additional for
project development to drill at least 5 more
wells
42. Summary – W.Plumb Bob
• Total Reserve: 600BCF + 30MM BBL
• Cost per Well: $20 million
• Estimated ROI: 12 Times
• 600BCF X $3MCF=$1.8 Billion
• 30MM BBL X $60/BBL = $1.8 Billion
• $1.8 Billion + $1.8 Billion = $3.6 Billion
• ROI = $3.6 Billion / $20 Million/10 Wells
= 12 times
45. Why Invest in Oil and Gas
Drilling Ventures
8.Tax Benefits
Thanks, Congres
s
1)Investment Tax Credits of Up to
100%
(1.Tax reform act of 1986 Section 469 ( c )(3)of
the Tax Code.
2)Annual Revenue savings of 15%
Federal Tax (See Section 263 of the Tax
Code)
(2.Job creation act of 2002 K-1 Form )
46.
47. Tax Incentives
• Oil and Natural gas from domestic
reserves helps to make the country
more energy self-sufficient by reducing
our dependence on foreign imports.
58. Shallow Target Visualization and Interpretation
2 gas sands at 2500 ft
Brightspot at 770ms
4BCF/3wells
390acres
A
B
A
.5BCF/1well
200arces
B
400acres
1000arces
60. Oil and Gas Underground
Several geologic elements are necessary for oil and gas to accumulate in
sufficient quantities to create a pool large enough to be worth producing.
Organic-rich
source rock to
generate the oil or
gas,
Porous reservoir
rock to store the
petroleum in,
Some sort of trap
to prevent the oil
and gas from
leaking away.
68. Summary
1. Demand > Supply
2. High Annual Return (Only 6-9 Months Waiting Period)
3. Declining reserves
4. Alternatives Can’t Solve Problem
5. Emerging Markets
6. Commodities Against Inflation
7. Tax Incentive
8. Good Opportunity for Immigration
69. Why Invest in LUCA
• Average ROI of 20%- 30%
• 100% tax deduction
• Qualify for free financial aid
• Payout in as little as 6 months
• Reduced risk – 15 wells are already drilled and 9
wells are currently producing oil
• Diversified portfolio of wells in strategic mature
oil producing locations
• Low management fee – Luca charges 12% of
profit only after investor earns back full
principals
• Low minimum investment - $330k
70. Investment Procedures
1. Sign Subscription Booklet
2. Acknowledge receipt of Confidential Private Placement Memorandum
3. Write check payable to LUCA Oil, LLC
4. Once check is clear, you’ll receive ownership certificate and signed agreement
5. Funds are put to work, to drill the rest of the wells.
6. You’ll receive dividend checks on a monthly basis starting on 7th month
7. We’ll provide you the K-1 form for your tax deduction
8. Receive user and password to access project status online.
71. Questions?
Oil Is The World’s Currency. We Look Forward
to Partnering With You On A Rewarding
Opportunity.
72. Thank You!
For further information please contact:
Global Headquarters
Fiona Tran
Fund Manager
39650 Liberty Street, Suite 490
Fremont, CA 94538
Tel: 510-498-8829
Fax: 510-498-1926
WWW.LUCA88.COM
