presents direct investment in oil and gas reserves
TRANSCRIPT
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Presents
DIRECT INVESTMENT IN OIL AND GAS RESERVES
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
• Most of the World’s Reserves are Nationalized or Held by Sovereigns
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
• Most of the World’s Reserves are Nationalized or Held by Sovereigns
• The US and Canada have Clear and Established Legal Structures to Protect Private Property Rights
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
• Most of the World’s Reserves are Nationalized or Held by Sovereigns
• The US and Canada have Clear and Established Legal Structures to Protect Private Property Rights
• Private Property Rights are Critical to Their Culture and Support Economic and Political Identity
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency• Heavily Regulated Industry
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency• Heavily Regulated Industry
• Oil and Gas Production Reported Publicly
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The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency• Heavily Regulated Industry
• Oil and Gas Production Reported Publicly
• Internet Access to Data
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Oil and Gas Industry is an Efficient Micro-Economic Business Model
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Oil and Gas Industry is an Efficient Micro-Economic Business Model
• The World’s Strongest Economy Sets Market Prices
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Oil and Gas Industry is an Efficient Micro-Economic Business Model
• The World’s Strongest Economy Sets Market Prices
• Market Prices Established in New York or London… (No Volume Discounts)
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Oil and Gas Industry is an Efficient Micro-Economic Business Model
• The World’s Strongest Economy Sets Market Prices
• Market Prices Established in New York or London… (No Volume Discounts)
• 100% of Supply is Sold… (at Highest Market Prices)
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Oil and Gas Industry is an Efficient Macro-Economic Business Model
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Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
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Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
• US Dollar Denominated
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Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
• US Dollar Denominated
• Exchange Traded. (Provides Liquidity) SEC & FTSE Valuation Standards
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Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
• US Dollar Denominated
• Exchange Traded. (Provides Liquidity) SEC & FTSE Valuation Standards
• Tangible Asset with Cash Flow
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Three Stages of Activity in an Oil Field
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Three Stages of Activity in an Oil Field
• Exploration:Very High Risk, Very High Reward
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Three Stages of Activity in an Oil Field
• Exploration
• Developmental:Low Risk, High Reward
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Three Stages of Activity in an Oil Field
• Exploration
• Developmental
• Reserve Asset: Very Low Risk, Modest Reward
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SK & CO Specializes in Developmental Oil and Gas Projects
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SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
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SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
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SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
• Acquire Additional Acreage
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SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
• Acquire Additional Acreage
• Commence Developmental Drilling
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Return of Investment precedes
Return on Investment
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Return of Investment precedes
Return on Investment
• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months
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Return of Investment precedes
Return on Investment
• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months
• 20 to 30 Years of Production Follows Return of Capital
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Return of Investment precedes
Return on Investment
• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months
• 20 to 30 Years of Production Follows Return of Capital • Remaining Reserves Decline Over Time and Are Valued Accordingly
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Unique Financial Model
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Unique Financial Model
• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling
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Unique Financial Model
• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling
• Minimizes The Use of Capital
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Unique Financial Model
• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling
• Minimizes The Use of Capital
• Compounds Returns Without the Risks of Leverage
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Summary of Proposal
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Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
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Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
• Expand Reserves with Developmental Drilling
![Page 39: Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES](https://reader036.vdocuments.mx/reader036/viewer/2022070307/551b54fd550346d41a8b61e5/html5/thumbnails/39.jpg)
Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
• Expand Reserves with Developmental Drilling
• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage
![Page 40: Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES](https://reader036.vdocuments.mx/reader036/viewer/2022070307/551b54fd550346d41a8b61e5/html5/thumbnails/40.jpg)
Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
• Expand Reserves with Developmental Drilling
• Sell Developed Field, (Reserves) to Major Oil Companies
• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage
![Page 41: Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES](https://reader036.vdocuments.mx/reader036/viewer/2022070307/551b54fd550346d41a8b61e5/html5/thumbnails/41.jpg)
Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
• Expand Reserves with Developmental Drilling
• Sell Developed Field, (Reserves) to Major Oil Companies
• Use Reinvestment of Cash Flows to Compound Returns Without Use of Leverage
• 5 to 7 Year Exit Strategy