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5 Vital Steps To Success With Black Gold
When Investing in any industry, It's wise to capitalize on the multitude of favorable market
conditions presenting themselves..
In 2017, Oil & Gas has a ‘Perfect Storm’ of favorable conditions
Such as…
2
Low Oil & Gas Prices
This was due to an oversupply by OPEC (Saudi Arabia, Iran,
Iraq). However the oversupply was a strategy to bankrupt US oil
companies. But It can’t last forever due to diminishing reserves
Low Drilling Costs
With the amount of US oil companies going bankrupt or halting
production until the oil price went back up, it left people without
work. This creates cheaper labor and equipment cost.,
Upswing Of Oil Price
Most Oil &Gas experts predict prices to rise significantly over the
next 3-5 years. There has only been two times in the last 90
years with such a favorable conditions and this is one of them.
Oil & Gas as an investment is made safe and highly lucrative when you combine
5 vital steps. Those steps can be found on the following page.
5 Vital Steps To A
Successful Oil & Gas Investment
3
LOCATION LOCATION
Source the best possible location,. This can require years of work to sift through thousands of projects.
Once one ticks all the box’s, you must have a team of seasoned experts do their homework. When all
the due-diligence comes back favorable, you need to be prepared to commit to it and invest heavily in
the mineral rights so you have ownership.
INDEPENDENT VERIFICATION
Make sure you have 3rd party engineering and geology reports done by independent petroleum consulting firms
with long track records, are used by banks, public companies and other financial institutions. Or make sure they
have 3d Seismic data that echo the same Oil & Gas reserve numbers as our own teams findings. (This way your
sure how much money is actually under the ground and how much can be extracted for profit. No guess work)
ONGOING MANAGEMENT
In Oil & Gas It’s wise to have a management team with a long track record. These guys will be the ones
tasked with taking care of the day to day operations of the oil wells. It’s also wise to have the same
operational management team heavily invested into the project. That way they do their utmost to
maximize the efficiency of the wells by keeping production high and costs low.
THE RIGHT TEAM
In all great companies you will find truly great people. Jim Collins book “Good To Great” Highlights this
perfectly. A successful Oil & Gas investment starts with a highly skilled Board of Directors, Operational
Team, Geologists, Petrochemical Experts and Geophysicist’s with decades of experience in the same
oil fields the investment is situation in.
CAPITAL RAISED ON TIME
A successful investment stems from numerous checks and balances. Making sure all the capital is
raised on time is as vital as the others. Last thing an investor wants is to invest money, wait 12 months
for the rest of the capital to be raised while their funds are held hostage. So having definitive timelines
and making sure investors take action within those timelines is of prime importance.
The Right Team
We all know, you can’t build a strong
house on shaky foundations. And it’s no
different to building a successful blue
chip company or creating a solid long
term investment. So the most important
step is to have the right team from the
outset to ensure the right type of
success
For example: Over the next few pages
you can see review a handful of
members from our Board of Directors.
This will give you a strong indication on
what to look for when investing into ANY
Oil & Gas project.
Step 1
MEET OUR TEAM
Great Investments Have Great Teams Behind Them
5
An expert in the energy industry for 31
years. Founding many well known
companies. One producing in excess Of
7,000 BOPD and another controlling 22
million acres.
Tom Kelly ~ CEO
Also Over 30 years experience In Oil &
Gas, Sid’s last major acquisition, was
430,000 acres under lease in the
Montana- Williston Basin play to Apache
Corp in 2012.
Sid Greehey ~ President
Mr. Teague has been in the oil and gas
industry since 1974. He began his
career with Pennzoil Producing in the
land management department. Mr.
Teague’s clients included majors such
as Exxon, Chevron and Gulf
Robert Teague Exec VP
Mr. Knupp has over 25 years of
experience in geophysical applications
in the oil and gas industry with emphasis
in 3D Seismic Visualization. He
pioneered 3D seismic visualization while
at Exxon Research.
Dan Knupp ~ Geophysicist
Tom Kelly ~ CEO
Mr. Kelly has been in the energy industry for 31 years. In 1981, he co-founded Baytech, Inc. and in 1999 founded
First Permian, LLC, both oil and gas exploration and production companies operating in the Permian Basin with
over 2000 wells and 5,000 barrels per day of production. The assets were comprised of four, well established water
flood and CO2 floods located primarily in the Permian. In 2002, First Permian sold the assets to Energn.
Mr. Kelly also founded BPZ Energy, which was a Houston, Texas Based Oil and Gas Company with exploration
assets located in Northern Peru. The company operated in excess of 7,000 BOPD on offshore block 21. Mr. Kelly
also co-founded PetroToro Oil and Gas, a Canadian based company that controlled over 22 million acres in Peru,
under an exploration permit to study and explore unconventional oil and gas reservoirs in central Peru. Mr. Kelly
founded United Fuel & Energy in 1985, which was the largest provider of fuel, lubricants, propane and other related
services in the Permian Basin servicing the Oil and Gas service industry with assets located in Texas, New Mexico
Oklahoma and Arizona. The company was sold to SC Fuels of Orange County, California in 2008.
In 2013, Mr. Kelly co-founded ProPetro Service with headquarters in Midland Texas. ProPetro is an integrated oil
and gas service company consisting of Frac, Drilling, Nitrogen, and FloBack operations in Utah, New Mexico, and
Oklahoma. Mr. Kelly has been involved in several other oil and gas energy related business that range from
seismic interpretation companies to drilling and subsequently operating companies throughout his career. Mr. Kelly
lives in Dallas Texas and is the Managing Member of Wagyu Excelente, which is known as one of the finest brands
of Wagyu Beef In America.
Sid Greehey ~ President
As managing partner of GreeheyCo, Inc. Sid Greehey, is a second generation oil and gas executive with over 30
years’ experience in the industry. Sid specializes in property acquisitions, land leasing, prospecting for E&P projects
and divestitures. With his last major acquisition, he promoted the sale of approximately 430,000 acres under lease
in the Montana- Williston Basin play to Apache Corp in 2012. In addition, Mr. Greehey formerly owned Integrity
Industries, a drilling fluid, oilfield logistics and saltwater disposal company, which at the time, was one of the first
operators in Austin area. Integrity supported the Austin chalk horizontal drilling, assisted with engineering planning
and provided services for hundreds of wells. Integrity Industries is now part of Weatherford Companies. Prior to
operating his own companies, Mr. Greehey worked for Border Exploration and Bum Bright of Bright & Company. At
Bright &Company he acquired oil and gas leases, negotiated and purchased large real estate holdings in Texas and
was involved with the sale of the Dallas Cowboys to Jerry Jones.
Mr. Greehey earned a BA from SMU in 1979 where he was a Scholarship Football Letterman. He is the currently
serves on the Board of the Mount Calvary Lutheran Church. Sid’s father is Bill Greehey, one of the founders of
Valero Energy and current Chairman of NuStar Energy L.P., and NuStar GP Holdings, LLC, both based in San
Antonio, TX. NuStar Energy is a publicly traded MLP that is one of the largest asphalt refiners, midstream and oil
and gas marketers in the United States, the third largest independent liquids terminal operator in the world. NuStar
has been ranked as one of FORTUNE’s “100 Best Companies to Work For” for eight consecutive years, recognized
with many national safety awards, and lauded for its commitment to community service.
Robert Teague ~ Exec. V.P Land Acquisitions
Mr. Teague has been in the oil and gas industry since 1974. He began his career with
Pennzoil Producing in the land management department. In 1977,
Mr. Teague formed his own company and had as many as 200 land men employed at one
time. Mr. Teague’s clients included majors such as Exxon, Chevron, Gulf and
independents such as El Paso, Anadarko, Carrizo, Chesapeake and many others. Mr.
Teague has served on the board of directors for the Steeplechase Club of Fort Worth,
Bonanza Oil & Gas, United Production, Laguna Oil Partners and the Kappa Sigma
Alumni. He’s also an advising member to the Petroleum Club of San Antonio and the
Houston & Fort Worth AAPL.
Dan Knupp ~ Geophysicist
Mr. Knupp has over 25 years of experience in geophysical applications in the oil and gas
industry with emphasis in 3D Seismic Visualization. Mr. Knupp pioneered 3D seismic
visualization while at Exxon Research in the Development Critical Technologies Division
and received a patent on the technology 2 years after leaving Exxon. Mr. Knupp’s
geophysical background includes Seismic Data Acquisition, Seismic Data Processing,
Geophysical Modeling, Seismic Interpretation, 3D Visualization, Network Design,
Management and Pioneering Entrepreneurship.
In addition to Exxon, Mr. Knupp has worked with Western Geophysical, Veritas DGC,
Edge Petroleum and Blackstone Oil and Gas.
Location Location
As the old saying goes, The best place to find
lots of oil is right in the middle of an oil field.
However buying mineral rights in a producing
oil field can be near impossible as the majors
like Exxon, Chevron etc have the buying power
to keep you away.
So how do you find an oil lease that makes
sense? Over the following few pages you will
see what we did to source the best possible Oil
& Gas leases.
Step 2
To find the best leases must first be connected to the
industry. The best deals are simply not available on a
website for purchase. In the Oil & Gas space it’s very
much a “good ole boys club”. When a lease is for sale the
top dogs and the connected players with cash to spend
take first look. The leases for sale on websites or through
brokers have been rejected by the key players for various
reasons, namely they are no good.
The good ones are snapped up immediately! To find a
good lease we would look at an average of roughly 650
leases. These are BEFORE they ever get to market. This
is a costly exercise as to properly vet a lease you need a
team of experts. And to vet 650 leases you need a big
team of experts and deep pockets. But the payoff is worth
the investment if you know what your doing.
For example a lease we acquired in Texas is a prime
example of this. We overcame bidding wars, legal issues
and many other obstacles to secure this lease. We
invested millions to acquire it. It’s right slap bang in the
middle of a record setting oil field. The ROI on this will be
monumental. Take a look on the following page…
Steps To Find The Perfect Lease
Location Location
12
Texas Location
Here you will see our yellow
acreage (35,000 acres) is
sandwiched right between
Summit Petroleum and Raptor
Oil & Gas. Both companies are
producing oil in record numbers
from this land. The projections
from a conservative 3rd party
verification company came back
at 250,000 barrels of oil per well
over 8 years. Raptor and Summit
have produced close to that in
just 2 years!
Raptor
Summit
Our Lease
Location Location
Raptor Raised $75Mil to drill in the same field as we hold 35,000 acres in.
13
Independent Verification
As great as your own team might be at
locating oil. It’s a very wise move to
always have some form of 3rd party
verification before committing your
investment to the pot.
We use multiple forms of 3rd party data to
verify the Oil & gas under the ground.
Over the following pages you can see
what we use and why we use these
systems and consultants.
Step 3
DeGoyler MacNaughton &
3D Seismic Imagery
15
As the leading independent consulting firm focused on the
petroleum industry, DeGolyer and MacNaughton provides
unbiased and informed answers to clients worldwide. D&M
skillfully blends energy economics, engineering and the
earth sciences to help clients in more than 100 countries
make the smartest decisions regarding exploration,
recovery and management of oil and gas resources.
The advent of 3-D seismic has transformed the upstream
oil industry because it enabled exploration in areas with
complex structures lying below complex overburden. The
software we use is proprietary and developed between
Greehey & co and Exxon mobile. Neither company is allow
sell or allow 3rd party entity's to use the software. They can
only use the software on their own project's. So to have
the ability to use such sophisticated software to pin point
Oil 7 gas is the best way to de-risk your drilling program.
Note: 2,594 Mbbl = 2,594,000 barrels of oil in proved reserve.
With todays oil prices it’s worth roughly $134,888,000
Ongoing Management
While the secret sauce in a successful Oil
& Gas project comes from having the right
team, picking the right lease and making
sure the geology and drilling is done to
perfection. It’s also important to have a
great team to stay with the project for it’s
entire life cycle
Our Sabine Project in Louisiana has a
lifecycle of 15-18 years for example. On
the following page we show you the things
to look out for when picking the right team
to manage a project ongoing.
Step 4
Ongoing Management
What you need to look out for in the team operating and managing the lease ongoing
19
Track Record
Local Knowledge
Having a track record that spans
over decades is a huge indicator
that the company will be around for
the life of the lease (15-18 years
and in some leases as long as 30+
years). A long track record also let’s
you see how good a company is
through previous project success.
You can also see how ethical a
company is when they have history.
In the Oil & Gas space local knowledge
can be a huge contributor. The
gatherers who collect the oil and deliver
it to the refinery will pay you faster when
they know you rather that someone
new. A new person can wait 60+ days to
get paid and a local can get paid in as
little as 15 days. Local players can also
get parts for broken pump jacks quicker
and cheaper along with being able to
cut through red tape when permitting is
required. And most importantly local
players know the risks and how to avoid
them to ensure success month after
month for investors.
Getting Paid
20
An important role for the ongoing
management team is making
sure everyone gets paid on time.
Having the right relationships
and the right accounting
schedules makes sure things run
smoothly when the mid-stream
gatherers come to the lease to
collect the oil and deliver it to the
refinery. Without a strong team in
place, schedules become a
mess, The gatherers and refinery
wont want to do business and
you can get blacklisted.
Capital Raised On Time
The speed to which the full amount
of capital is raised for any project is
of prime importance. When investing
with an Oil & Gas project it’s wise to
investigate the company's strength
from a capital raising standpoint.
Weak companies in this dept
(regardless of how good their
project, how high the ROI might be
or how professional they might
seem, none of this matters if they
cant get their projects fully funded
before the deadline. Projects need
firm deadlines for funding due to a
number of factors which I will explain
on the next page.
Step 5
Capital Raised On Time
22
More Opportunity
The more efficient an Oil &
gas company is with
raising capital, the more
opportunity's they can
secure. This creates far
stronger exit clauses and
new investment
opportunities while keeping
under the same umbrella.
Efficient Team
Having a team that
does not have a strong
capital raising dept.
slows down the pipeline
and inhibits your
chance to re-invest with
that company or
another company.
Better ROI
Investors gets a higher
ROI and the ROI will
come a lot sooner rather
than investors money
being held hostage while
waiting on other investors
to fund. Deadlines that are
adhered to can help keep
investors capital and ROI
safe.
Economics
Economics are cheaper from a
development and construction
perspective to do it all at the
same time.
ü  Labor is cheaper
ü  Drilling Rigs cost less and
can be used more
efficiently
ü  Chemical blends are more
cost effective
USA Location
2909 Cole Ave, Suite 115,
Dallas, TX 75219
Direct: 512.357.3330
Australia Location
Level 54 -111 Eagle St,
Brisbane, QLD 4000
Direct: 07.3041.1378
Ireland Location
Suite 21 Northwood Park,
Northwood Ave, Santry
Dublin 9 D09 X9X2
Direct: 01.513.7168
UK Location
13th Floor City Tower,
Piccadilly Plaza
Manchester M1 4BT
Direct: 44.61.820.8388

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5 Vital Steps to Investing in Oil and Gas

  • 1. . .
  • 2. 5 Vital Steps To Success With Black Gold When Investing in any industry, It's wise to capitalize on the multitude of favorable market conditions presenting themselves.. In 2017, Oil & Gas has a ‘Perfect Storm’ of favorable conditions Such as… 2 Low Oil & Gas Prices This was due to an oversupply by OPEC (Saudi Arabia, Iran, Iraq). However the oversupply was a strategy to bankrupt US oil companies. But It can’t last forever due to diminishing reserves Low Drilling Costs With the amount of US oil companies going bankrupt or halting production until the oil price went back up, it left people without work. This creates cheaper labor and equipment cost., Upswing Of Oil Price Most Oil &Gas experts predict prices to rise significantly over the next 3-5 years. There has only been two times in the last 90 years with such a favorable conditions and this is one of them. Oil & Gas as an investment is made safe and highly lucrative when you combine 5 vital steps. Those steps can be found on the following page.
  • 3. 5 Vital Steps To A Successful Oil & Gas Investment 3 LOCATION LOCATION Source the best possible location,. This can require years of work to sift through thousands of projects. Once one ticks all the box’s, you must have a team of seasoned experts do their homework. When all the due-diligence comes back favorable, you need to be prepared to commit to it and invest heavily in the mineral rights so you have ownership. INDEPENDENT VERIFICATION Make sure you have 3rd party engineering and geology reports done by independent petroleum consulting firms with long track records, are used by banks, public companies and other financial institutions. Or make sure they have 3d Seismic data that echo the same Oil & Gas reserve numbers as our own teams findings. (This way your sure how much money is actually under the ground and how much can be extracted for profit. No guess work) ONGOING MANAGEMENT In Oil & Gas It’s wise to have a management team with a long track record. These guys will be the ones tasked with taking care of the day to day operations of the oil wells. It’s also wise to have the same operational management team heavily invested into the project. That way they do their utmost to maximize the efficiency of the wells by keeping production high and costs low. THE RIGHT TEAM In all great companies you will find truly great people. Jim Collins book “Good To Great” Highlights this perfectly. A successful Oil & Gas investment starts with a highly skilled Board of Directors, Operational Team, Geologists, Petrochemical Experts and Geophysicist’s with decades of experience in the same oil fields the investment is situation in. CAPITAL RAISED ON TIME A successful investment stems from numerous checks and balances. Making sure all the capital is raised on time is as vital as the others. Last thing an investor wants is to invest money, wait 12 months for the rest of the capital to be raised while their funds are held hostage. So having definitive timelines and making sure investors take action within those timelines is of prime importance.
  • 4. The Right Team We all know, you can’t build a strong house on shaky foundations. And it’s no different to building a successful blue chip company or creating a solid long term investment. So the most important step is to have the right team from the outset to ensure the right type of success For example: Over the next few pages you can see review a handful of members from our Board of Directors. This will give you a strong indication on what to look for when investing into ANY Oil & Gas project. Step 1
  • 5. MEET OUR TEAM Great Investments Have Great Teams Behind Them 5 An expert in the energy industry for 31 years. Founding many well known companies. One producing in excess Of 7,000 BOPD and another controlling 22 million acres. Tom Kelly ~ CEO Also Over 30 years experience In Oil & Gas, Sid’s last major acquisition, was 430,000 acres under lease in the Montana- Williston Basin play to Apache Corp in 2012. Sid Greehey ~ President Mr. Teague has been in the oil and gas industry since 1974. He began his career with Pennzoil Producing in the land management department. Mr. Teague’s clients included majors such as Exxon, Chevron and Gulf Robert Teague Exec VP Mr. Knupp has over 25 years of experience in geophysical applications in the oil and gas industry with emphasis in 3D Seismic Visualization. He pioneered 3D seismic visualization while at Exxon Research. Dan Knupp ~ Geophysicist
  • 6. Tom Kelly ~ CEO Mr. Kelly has been in the energy industry for 31 years. In 1981, he co-founded Baytech, Inc. and in 1999 founded First Permian, LLC, both oil and gas exploration and production companies operating in the Permian Basin with over 2000 wells and 5,000 barrels per day of production. The assets were comprised of four, well established water flood and CO2 floods located primarily in the Permian. In 2002, First Permian sold the assets to Energn. Mr. Kelly also founded BPZ Energy, which was a Houston, Texas Based Oil and Gas Company with exploration assets located in Northern Peru. The company operated in excess of 7,000 BOPD on offshore block 21. Mr. Kelly also co-founded PetroToro Oil and Gas, a Canadian based company that controlled over 22 million acres in Peru, under an exploration permit to study and explore unconventional oil and gas reservoirs in central Peru. Mr. Kelly founded United Fuel & Energy in 1985, which was the largest provider of fuel, lubricants, propane and other related services in the Permian Basin servicing the Oil and Gas service industry with assets located in Texas, New Mexico Oklahoma and Arizona. The company was sold to SC Fuels of Orange County, California in 2008. In 2013, Mr. Kelly co-founded ProPetro Service with headquarters in Midland Texas. ProPetro is an integrated oil and gas service company consisting of Frac, Drilling, Nitrogen, and FloBack operations in Utah, New Mexico, and Oklahoma. Mr. Kelly has been involved in several other oil and gas energy related business that range from seismic interpretation companies to drilling and subsequently operating companies throughout his career. Mr. Kelly lives in Dallas Texas and is the Managing Member of Wagyu Excelente, which is known as one of the finest brands of Wagyu Beef In America.
  • 7. Sid Greehey ~ President As managing partner of GreeheyCo, Inc. Sid Greehey, is a second generation oil and gas executive with over 30 years’ experience in the industry. Sid specializes in property acquisitions, land leasing, prospecting for E&P projects and divestitures. With his last major acquisition, he promoted the sale of approximately 430,000 acres under lease in the Montana- Williston Basin play to Apache Corp in 2012. In addition, Mr. Greehey formerly owned Integrity Industries, a drilling fluid, oilfield logistics and saltwater disposal company, which at the time, was one of the first operators in Austin area. Integrity supported the Austin chalk horizontal drilling, assisted with engineering planning and provided services for hundreds of wells. Integrity Industries is now part of Weatherford Companies. Prior to operating his own companies, Mr. Greehey worked for Border Exploration and Bum Bright of Bright & Company. At Bright &Company he acquired oil and gas leases, negotiated and purchased large real estate holdings in Texas and was involved with the sale of the Dallas Cowboys to Jerry Jones. Mr. Greehey earned a BA from SMU in 1979 where he was a Scholarship Football Letterman. He is the currently serves on the Board of the Mount Calvary Lutheran Church. Sid’s father is Bill Greehey, one of the founders of Valero Energy and current Chairman of NuStar Energy L.P., and NuStar GP Holdings, LLC, both based in San Antonio, TX. NuStar Energy is a publicly traded MLP that is one of the largest asphalt refiners, midstream and oil and gas marketers in the United States, the third largest independent liquids terminal operator in the world. NuStar has been ranked as one of FORTUNE’s “100 Best Companies to Work For” for eight consecutive years, recognized with many national safety awards, and lauded for its commitment to community service.
  • 8. Robert Teague ~ Exec. V.P Land Acquisitions Mr. Teague has been in the oil and gas industry since 1974. He began his career with Pennzoil Producing in the land management department. In 1977, Mr. Teague formed his own company and had as many as 200 land men employed at one time. Mr. Teague’s clients included majors such as Exxon, Chevron, Gulf and independents such as El Paso, Anadarko, Carrizo, Chesapeake and many others. Mr. Teague has served on the board of directors for the Steeplechase Club of Fort Worth, Bonanza Oil & Gas, United Production, Laguna Oil Partners and the Kappa Sigma Alumni. He’s also an advising member to the Petroleum Club of San Antonio and the Houston & Fort Worth AAPL.
  • 9. Dan Knupp ~ Geophysicist Mr. Knupp has over 25 years of experience in geophysical applications in the oil and gas industry with emphasis in 3D Seismic Visualization. Mr. Knupp pioneered 3D seismic visualization while at Exxon Research in the Development Critical Technologies Division and received a patent on the technology 2 years after leaving Exxon. Mr. Knupp’s geophysical background includes Seismic Data Acquisition, Seismic Data Processing, Geophysical Modeling, Seismic Interpretation, 3D Visualization, Network Design, Management and Pioneering Entrepreneurship. In addition to Exxon, Mr. Knupp has worked with Western Geophysical, Veritas DGC, Edge Petroleum and Blackstone Oil and Gas.
  • 10. Location Location As the old saying goes, The best place to find lots of oil is right in the middle of an oil field. However buying mineral rights in a producing oil field can be near impossible as the majors like Exxon, Chevron etc have the buying power to keep you away. So how do you find an oil lease that makes sense? Over the following few pages you will see what we did to source the best possible Oil & Gas leases. Step 2
  • 11. To find the best leases must first be connected to the industry. The best deals are simply not available on a website for purchase. In the Oil & Gas space it’s very much a “good ole boys club”. When a lease is for sale the top dogs and the connected players with cash to spend take first look. The leases for sale on websites or through brokers have been rejected by the key players for various reasons, namely they are no good. The good ones are snapped up immediately! To find a good lease we would look at an average of roughly 650 leases. These are BEFORE they ever get to market. This is a costly exercise as to properly vet a lease you need a team of experts. And to vet 650 leases you need a big team of experts and deep pockets. But the payoff is worth the investment if you know what your doing. For example a lease we acquired in Texas is a prime example of this. We overcame bidding wars, legal issues and many other obstacles to secure this lease. We invested millions to acquire it. It’s right slap bang in the middle of a record setting oil field. The ROI on this will be monumental. Take a look on the following page… Steps To Find The Perfect Lease
  • 12. Location Location 12 Texas Location Here you will see our yellow acreage (35,000 acres) is sandwiched right between Summit Petroleum and Raptor Oil & Gas. Both companies are producing oil in record numbers from this land. The projections from a conservative 3rd party verification company came back at 250,000 barrels of oil per well over 8 years. Raptor and Summit have produced close to that in just 2 years! Raptor Summit Our Lease
  • 13. Location Location Raptor Raised $75Mil to drill in the same field as we hold 35,000 acres in. 13
  • 14. Independent Verification As great as your own team might be at locating oil. It’s a very wise move to always have some form of 3rd party verification before committing your investment to the pot. We use multiple forms of 3rd party data to verify the Oil & gas under the ground. Over the following pages you can see what we use and why we use these systems and consultants. Step 3
  • 15. DeGoyler MacNaughton & 3D Seismic Imagery 15 As the leading independent consulting firm focused on the petroleum industry, DeGolyer and MacNaughton provides unbiased and informed answers to clients worldwide. D&M skillfully blends energy economics, engineering and the earth sciences to help clients in more than 100 countries make the smartest decisions regarding exploration, recovery and management of oil and gas resources. The advent of 3-D seismic has transformed the upstream oil industry because it enabled exploration in areas with complex structures lying below complex overburden. The software we use is proprietary and developed between Greehey & co and Exxon mobile. Neither company is allow sell or allow 3rd party entity's to use the software. They can only use the software on their own project's. So to have the ability to use such sophisticated software to pin point Oil 7 gas is the best way to de-risk your drilling program.
  • 16.
  • 17. Note: 2,594 Mbbl = 2,594,000 barrels of oil in proved reserve. With todays oil prices it’s worth roughly $134,888,000
  • 18. Ongoing Management While the secret sauce in a successful Oil & Gas project comes from having the right team, picking the right lease and making sure the geology and drilling is done to perfection. It’s also important to have a great team to stay with the project for it’s entire life cycle Our Sabine Project in Louisiana has a lifecycle of 15-18 years for example. On the following page we show you the things to look out for when picking the right team to manage a project ongoing. Step 4
  • 19. Ongoing Management What you need to look out for in the team operating and managing the lease ongoing 19 Track Record Local Knowledge Having a track record that spans over decades is a huge indicator that the company will be around for the life of the lease (15-18 years and in some leases as long as 30+ years). A long track record also let’s you see how good a company is through previous project success. You can also see how ethical a company is when they have history. In the Oil & Gas space local knowledge can be a huge contributor. The gatherers who collect the oil and deliver it to the refinery will pay you faster when they know you rather that someone new. A new person can wait 60+ days to get paid and a local can get paid in as little as 15 days. Local players can also get parts for broken pump jacks quicker and cheaper along with being able to cut through red tape when permitting is required. And most importantly local players know the risks and how to avoid them to ensure success month after month for investors.
  • 20. Getting Paid 20 An important role for the ongoing management team is making sure everyone gets paid on time. Having the right relationships and the right accounting schedules makes sure things run smoothly when the mid-stream gatherers come to the lease to collect the oil and deliver it to the refinery. Without a strong team in place, schedules become a mess, The gatherers and refinery wont want to do business and you can get blacklisted.
  • 21. Capital Raised On Time The speed to which the full amount of capital is raised for any project is of prime importance. When investing with an Oil & Gas project it’s wise to investigate the company's strength from a capital raising standpoint. Weak companies in this dept (regardless of how good their project, how high the ROI might be or how professional they might seem, none of this matters if they cant get their projects fully funded before the deadline. Projects need firm deadlines for funding due to a number of factors which I will explain on the next page. Step 5
  • 22. Capital Raised On Time 22 More Opportunity The more efficient an Oil & gas company is with raising capital, the more opportunity's they can secure. This creates far stronger exit clauses and new investment opportunities while keeping under the same umbrella. Efficient Team Having a team that does not have a strong capital raising dept. slows down the pipeline and inhibits your chance to re-invest with that company or another company. Better ROI Investors gets a higher ROI and the ROI will come a lot sooner rather than investors money being held hostage while waiting on other investors to fund. Deadlines that are adhered to can help keep investors capital and ROI safe. Economics Economics are cheaper from a development and construction perspective to do it all at the same time. ü  Labor is cheaper ü  Drilling Rigs cost less and can be used more efficiently ü  Chemical blends are more cost effective
  • 23. USA Location 2909 Cole Ave, Suite 115, Dallas, TX 75219 Direct: 512.357.3330 Australia Location Level 54 -111 Eagle St, Brisbane, QLD 4000 Direct: 07.3041.1378 Ireland Location Suite 21 Northwood Park, Northwood Ave, Santry Dublin 9 D09 X9X2 Direct: 01.513.7168 UK Location 13th Floor City Tower, Piccadilly Plaza Manchester M1 4BT Direct: 44.61.820.8388