Energy Company Vision

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Example of a PowerPoint Presentation I did for a local energy company.

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Energy Company Vision

  1. 1. Laurus Energy, Inc.Our Vision To build one of the largest and most profitable energy companies in North America
  2. 2. ✽ What is the current state of play?  The importation of high cost oil is threatening North America‟s economy and is the cause of dependence of volatile oil producing nations  Despite a great deal of rhetoric, no meaningful or economical way to clean the air has been discovered  Huge government subsidies towards renewables and bio technologies has no chance of making even a dent in either of these problems facing North America  The cheap energy we have relied on for decades...traditional coal is being phased out and is not permittable....with no substitute in place
  3. 3. ✽ The Solutiono North America is the largest energy market in the world and sits on an enormous, indigenous coal resource that the incumbent industry cannot accesso Laurus has the technology that will unlock this resource at a fraction of the cost of current prices of oil, gas and “clean” coalo With such low production cost, subsequent products are much less expensive than all other alternativeso Gas created using this technology, when burned in power plants or turned into products traditionally made with oil, will create fewer emissions than even natural gas
  4. 4. ✽ An Abundant Resource North America is the largest energy market in the world and sits on an enormous, indigenous coal resource that the incumbent industry cannot access  Over 2 trillion tonnes of unmineable coal in North America (6.6 Trillion BOE)  400 years of total US energy consumption (liquid, gas, nuclear, etc.)  Without this technology the coal has no economic use  Easy and inexpensive to acquire  Reserves are important for energy company valuations
  5. 5. * Low Cost UCG Low Cost Structure vs. Natural Gas$5.00 $4.50 Natural$4.00 Gas Unit UCG Cost Market Margin to Electricity $/MWh $ 29.93 $ 97.00 Nat Gas$3.00 Price SNG $/mmBTU $ 3.06 $ 4.00 Methanol $/metric tonne $ 88.40 $ 399.00 Low Carbon Gasoline $/Gallon $ 0.90 $ 3.43 Syngas Cost Diesel $/Gallon $ 1.07 $ 3.75$2.00 εUCG Syngas Ammonia $/metric tonne $ 132.00 $ 595.00 Royalties Urea $/metric tonne $ 155.00 $ 500.00 $1.50 (Coal & Technology)$1.00 $-
  6. 6. * A Wealth of Markets With such low production cost, subsequent products are much less expensive than all other alternatives Diesel Jet Fuel Kerosene Gasoline Synthetic Natural Gas Fertilizers Films/Coatings Plastics
  7. 7. * Low Emissions Gas created using this technology, when burned in power plants or turned into products traditionally made with oil, will create fewer emissions than even natural gas Extracting the benefits of Power Plant Emissions Comparison abundant coal, minimizing environmental impacts Emissions substantially reduced over any existing coal technologies Cleaner or comparable to natural gas emissions CO2 removal cheaper, more efficient, and ideal for Enhanced Oil Recovery (EOR)
  8. 8. ✽ Underground Coal Gasification  Underground coal gasification (UCG) is a process that generates a low btu gas called syngas  Syngas is not „synthetic gas‟ or „synthetic natural gas‟  Syngas is comprised mainly of hydrogen (H2), carbon monoxide (CO), methane (CH4), carbon dioxide (CO2), and nitrogen (N2).  It is produced from coal that is unusable by any other known technology
  9. 9. ✽ Solving Alaska‟s Natural Gas Crisis Stranded Markets• Natural gas supply is insufficient for o Power generation o Retail distribution• Ammonia / Urea Market o Idle fertilizer facility – 25-55 BCF per year• LNG for Export o LNG terminal 50% idle – 75 BCF per year• Native Alaskan partner – owner of coal, project participant• Next steps o Finalize site selection o Commence site characterization o Arrange for off-takers o Permitting
  10. 10. ✽ Alberta: Showcase for εUCG in North America ✽ Laurus leases over 2.2 Billion metric tons of coal in Alberta ✽ Permits have been received tor calibration burn ✽ Calibration burn can commence within six months ✽ Supportive local stakeholders • Letters of support from county, resident organization, and environmentalists ✽ Next Steps • Calibration burn Q1 2012 – Q4 2012 • Establish off-take agreements • Evaluate partnering opportunities
  11. 11. ✽ Financial Impacts  [Content TBD – Need to decide on scope of projects for AB and AK and how many others at what size and terms and timing]  [Format: Show cash flow build up?]  [Show timeline?]
  12. 12. ✽ Building the Next Great Energy Company Exxon-Mobil Anadarko Marathon Chevron Laurus Devon EOG Total Oxy BP Sources: Reserve quantities from companies‟ annual filings; Enterprise Value from Finance.Yahoo.com * Laurus volumes have not been evaluated under the test of proved reserves at this time; they are based on a conversion of estimated coal volumes under lease
  13. 13. ✽ Path forward  Acquire coal now  Focus on breakthrough projects  Create the workforce to execute  Permitting and acceptance … through education and involvement with regulators, community and environmentalists  Gain wholesale acceptance of the technical, industrial and financial communities

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