Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
§ Capitalcampaign§ Valuation: $7.5M§ Totalgoal: $6.0M§ Projectlaunch: $4.5M
§ Investor’sownershipat:§ $6.0M=80%fullysubscribed§ $4.5M=60%atlaunch
§ Founder’sownershipat:§ $6.0M=20%fullydiluted§ $4.5M=40%atlaunch
§ Useoffunds§ Contractors, staffandfacilities§ Produceanddeploycommercialsystem§ Launchcommercialproductionphase
DEAL STRUCTURE
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
§ THE COMPANY§ Headquartered–Wichita,Kansas§ Founded2009
§ THE BUSINESS§ Proprietaryoil-recoverytechnology§ Recovers80%ofthestrandedoil
§ THEMARKET§ 400billionbarrelsofstrandedoil§ LocatedinknownUSAfields
OVERVIEW
21 BBOProved
175 BBOProduced
400 BBOStranded
StrandedOil intheUSASource:Advanced Resources International
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
BOREHOLE EXTRACTION SYSTEM
§ Thesystem§ Disintegratesoilrichorebody§ Makesoilwhenitreachespayzone§ Safeandenvironmentallyprotective
§ Costeffectiveandefficient§ Zeroexplorationcosts– eliminatesdryholerisk§ Zerofutureadministrativeandoperationalcosts§ 70%lowerdrilling,completionandproductioncosts
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
COMMON OBSERVATIONS
§ Subsidence- yourprocesswillcreatemassivesinkholes§ No– productioncellsaresealed,pressurizedandalwaysfull
§ Proveithasmadeoil§ Ithasmadeoilandwecanproveit
§ Itwon’twork§ Ithasworkedtoproduceoil,coal,phosphatesanduraniumsands
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
OUR SYSTEM ALREADY WORKS
§ Notprovingitworks§ Improvinghowitworks
SonarProfile ofProductionCell
20’ Radius
§ Productioncellstats:§ Size: 32.5’Rby40’vH§ Volume: 4000barrelsofoil§ Time: 4daysstarttofinish
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
STRATEGIC PARTNERS ONBOARD
§ Fullservicedrillingoperators§ Industrialequipmentsuppliers§ Petroleumengineer§ Petroleumgeologist§ Chemicalengineer§ Mechanicalengineers§ Automatedsystemsdeveloper
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
FINANCIAL SUMMARY
$132k
$1.7M
$26M
$60M
$95M
$2.6M
$1.6M
$13M
$34M
$56M
$1.5M
$25k
$11M
$30M
$92M
Year1 Year2 Year3 Year4 Year5
Revenue Profit CashFlow
§ $183Msales§ $98Mprofit§ $92Mcashflow§ Fromsixoilfields§ Usingsixsystems
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
BREAKEVEN TABLE
§ $18perbarrel§ AllInProductionCost
$80,98
2,796
EndofYear5
$261
,644
EoY5
$3,748
,261
EoY5
Revenue Profit CashFlow
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
RETURN OF INVESTMENT
$16,253 $44,065 $72,592
$132,880
$32,445
$88,131
$145,184
$265,760
$48,668
$132,196
$217,775
$398,639
Year3 Year4 Year5 TotalReturns
AmountofInvestment$100k $200k $300k
§ Beginningyearthree§ 10%ofretainedearnings§ Recoupinvestmentyearfive
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
RATE OF RETURN
$1,814,530
$3,629
,060
$5,443
,590
ValueofInvestmentatEndofYear5
InvestmentAmount$100k $200k $300k
§ 1800%increase
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
EXIT STRATEGY
§ Sellcompany§ Endofyearfive§ Formultipleofcashflow§ $92Mcashflow
$5.9M
$11.9M
$17.9M
$8.9M
$17.9M
$26.9M
$11.9M
$23.9M
$35.8M
$100k $200k $300k
EndofYear5CashFlowMultiple5x 7.5x 10x
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
CONCLUSION§ 400+BBOstrandedoil
§ Patentsarepending
§ Reservelocationsknown
§ Newrecoverymethodneeded
§ Marketripefornewsystem
§ Mustbeefficient/costeffective
§ PhoenixhasthesolutionSource:USEnergyInformation Administration
Theachievement ofoperational results and financial forecasts inthisbusiness plan aredependent onfutureevents, theoccurrence ofwhich cannot beassured. While theCompany believesthe assumptions underlyingoperational results and forecasts inthisbusiness planarereasonable, someassumptions willnotmaterializeand unanticipated eventsand circumstances willoccur. Alloperational results and forecasts arenecessarilyspeculative in natureand noassurances canbe giventhattheywillberealized. Actual resultswill varyfromprojectedoperational results and forecasts andthose variationsmaybematerial. Accordingly, theoperational
results andfinancial forecasts should notbe reliedupon toindicate actual results thatmightbeobtained.
MENAS BIO
NEXLEARN, LLC – EXECUTIVE DIRECTOR OF VERTICAL MARKETS (08/2012 – 04/2011)Develop, implement and manage business plans and personnel to deliver software titles to consumers through mass market channels.§ 60 day critical path and go-fast sales and marketing plans§ Five year business plan, financial pro formas, sales and marketing plans§ Grew sales from $300 to $2000 per week in roll-out state
MPATHX, LLC – PRESIDENT/CEO (2001 – 2011)Developed int’l patent portfolio valued at $20M DCF/NPV. Massachusetts Institute of Technology named mPX Technology among the 30 most disruptive innovations of 2004.
§ $4.2M capital raised§ Developed and implemented Ten Year Business Plan and wrote intellectual property – all USA and International patents issued§ Developed proof of concept and production-ready product
SWT, INC. – PRESIDENT/CEO (2001 - 2003)Developed suite of scalable firmware solutions to provide Internet and Application Service Providers with real-time back-office accounting infrastructure and backbone enabling subscribers to order and receive applications- and/or media-on-demand with teleco-grade quality-of-service over private and public Internet Protocol networks.
§ $450M 50% NPV/DCF patent valuation§ Secured intellectual property portfolio – all patents issued – sold patent portfolios for $5.0M§ $2.6M new capital raised – $1.5M aged A/P reduction
MARCHE – PRESIDENT/CEO (1998 - 01)Industrial engineering, design and rapid prototyping firm that contracted with clients to develop leading-edge concepts into commercially viable/valuable technologies/products.§ $500k new capital raised - $60k aged A/P reduction – reversed operating loss and negative cash flow§ Secured existing and landed new key customers§ Developed and applied Rolling 12 Month Critical Path Plan, accounting systems and procedures
DATA SHARE, INC. – PRESIDENT/CEO (1983 - 96)International manufacturer of computer accessories and light peripherals that developed and sold 500+ products thru Best Buy, Wal-Mart, Costco, etc., and produced high volume custom products for leading OEMs.
STRENGTHS§ Excellent analytical, business- and project-planning skills.§ Outstanding implementation and management skills.§ Comfortable conversing, working with and presenting to C-level executives down.§ Quickly spot relevant patterns and issues to overcome obstacles and achieve.§ Forge teams of individuals with varied and complementary strengths.
PHILOSOPHY AND CREDO§ Speak truthfully.§ Develop relationships of reciprocal value.§ Cultivate collegial teams of professional individuals with complementary strengths.§ Plan well. Work smart.§ Achieve.
§ Joined company after college, cashed-out for seven figure gain§ Grew $20k bank loan to $10M debt vehicle on $24.2M sales§ Grew $28k cash flow to $2.0M owner's equity
§ $1.2M EBITDA – 22% annualized return on capital employed (ROCE)§ Organized and managed the all departments and more than 50 people§ Bought land, designed and built 35k square foot office & warehouse