2014 nov
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DISCLAIMER
This document has been prepared by Bayshore Petroleum Corp.(the “Company”, together with its subsidiaries, the “Group”) for the sole purpose of introducing the Company, and copying and delivery to others are strictly prohibited. Since the dissemination of this document within the jurisdiction of various countries might be subject to local laws, any individuals who will receive this document shall have a clear understanding of and comply with such laws and regulations.
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This document does not form part of any offering document of the Company or constitute any offer or solicitation by or on behalf of the Company relating to any securities of the Company. This document is not intended to provide the basis of any creditor of the revaluation or form the basis of any investment decision in any securities of the Company.
The information and opinions provided in this document are up to the date of this document and might be subject to changes in the future in respect of which no further notice will be issued. The Company and its affiliated companies, advisors or representatives disclaim any liability whatsoever for any loss howsoever arising from using this document or its contents or from other aspects of this document (whether this is caused by negligence or other reasons).
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Company Information
• Bayshore is a Canadian Public Company with its stock trading on the TSX Venture Exchange (BSH)
• Issued/Outstanding shares – 20 million shares• 52 week trading range - $0.12 to $0.23• Market Cap is approximately $3.3 million• Bayshore is an emerging crude oil upgrading company. It
seeks to create value by developing heavy oil or bitumen prospects, or partnering to acquire such assets. It shall use pioneering upgrading technology to revolutionize the upgrading/transportation/refining industries and grow its revenues rapidly, upgrading heavy crude oil and bitumen
• Head Office in Calgary, Bayshore has liaison offices located in Beijing, Shanghai, Dubai and Hong Kong
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Management and Directors
Peter Ho (Canada) CEO/President/Director
Mark Roth (Canada) CFO
CF Cheng (Hong Kong/China) China Executive Director
Raymond Go (Shanghai/China) Director, Chairman
Ibrahim Attereh VP, Middle East
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President/CEO/Director of Bayshore Petroleum. Over 30 years of oil/gas industry experience in North America, China, Middle East, and Asia. Mr. Ho is a professional engineer and has worked in international companies such as BP, Texaco, Kerr McGee, and TransCanada Pipelines. He has been involved in establishing companies in Hong Kong, Canada, and other jurisdictions. Mr. Ho has strong relationships with key international energy players, including SOEs such as PetroChina and CNPC. He has been involved in numerous heavy oil, oilsands, and unconventional resource projects in Canada and China for the past 20 years.
Mr. Ho has an interest and unfettered access to the revolutionary upgrading technology presented herein, developed by a Beijing research institute.
Peter Ho, P. Eng
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Revolutionary Upgrading TechnologyBayshore has secured new upgrading technology that is revolutionary in
the production and transportation of liquid hydrocarbon products: Cold Catalytic Cracking (“CCC”)
INNOVATIVE -This technology process utilizes a proprietary catalyst, in one step, to convert heavy oil or bitumen into a lighter oil (roughly diesel API) using merely atmospheric pressure and lower temperatures.
ECONOMIC - Cost to upgrade into a diesel product is approximately 1/3 the cost of traditional upgrading/refining (depending on volume etc.). Upgrading using this process produces methane, used to create heat for the process, making the upgrading more efficient
HUGE MARKET - Bayshore shall market and manage the exploitation of this new technology on behalf of the Chinese researcher, worldwide. Market size of this business is well over billion dollars in North America alone
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Conventional Oilsand / Heavy Oil Upgrading
Complex Upgrading process involvingComplex Upgrading process involvingHigh Pressures, Temperatures, andHigh Pressures, Temperatures, andrequiring the use of requiring the use of HydrogenHydrogen
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NEW Cold Catalytic Cracking (“CCC”) Heavy Oil and Bitumen Upgrading Technology
Synthetic GasLight Oil
(>30 API diesel)
ONE STEP – Three Products Petcoke
• Catalyst• 450 degrees
Celsius• Atmospheric
Pressure• No Hydrogen
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Heavy Oil(<10 API diesel)
CCC Technology
Simple - Pyrolysis Process only by heatingSpecific - The process is designed to upgrade heavy oil
directly to raw diesel and does not produce other petroleum distillates like gas, oil, kerosene, naphtha
Efficient -Yield of over 0.8 barrels of diesel per barrel of heavy oil. Much more efficient than conventional refinery efficiency (less than 0.35 barrels of diesel)
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Initial Lab Scale Bench Test
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Heavy Oil vs. Light Oil
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Pilot Testing 2014
8 cubic meter batch scale pilot CCC upgrader in Beijing Facility
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Successful Pilot Test
A 72 hours continuous batch test was successfully conducted in late May, 2014 with the same results as lab test
83% (volume) recovery of Diesel like Light Oil7.3% (mass) Gas Yield19.4% (mass) Petroleum Coke YieldThe pilot test is a complete success and demonstrates the
full commercial operation is applicable.Full coverage of the success story was published in China
Chemical Newspaper (Official News Media)
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Diesel produced by Pilot Plant
Synthetic Gas Flare
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Pet Coke
Commercial Plant Proposal
Planning to build a 3,000 Barrels Heavy Oil Upgrading Plant in Saskatchewan
Engineering design is on goingAnticipated Capital Cost $20-25 Million CDNConstruction in Spring 2015 and finish by December 2015First Heavy Oil Upgrading commercial unit using CCC
technology worldwide.
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Proposed 3,000 bopd commercial plant to be built
in Saskatchewan
Economics
1 Barrel of heavy crude oil processed using CCC process yields 0.83 barrels of Diesel – using 0.02 barrels of catalyst
Example:
Diesel sales price ($/bbl) $110
Heavy Oil price ($/bbl) $80
Cost of Catalyst $4.00
Plant Operating cost $8.00
Profit Margin ~ $18/barrel
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Global Heavy Oil Upgraders Development Opportunity
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> 3.4 Trillion Barrels> 3.4 Trillion Barrels
Potential Refinery Bottom Residue Upgrade
Bayshore signed LOI to upgrade Iraq refinery (Southern region) residum
Joint venture with a local partner 50/50 and building a 1,000 barrels per day demo upgrader / Desulphurizer in Iraq refinery site.
Potential to expand the operation to 40,000 Barrels per dayUsing the technology to expand into the gigantic Middle East
Heavy Oil Market including Kuwait, Oman, Saudi, Iran, Egypt, Turkey, Yemen, Bahrain, etc.
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Worldwide Heavy Oil Upgrading Opportunities
Target Countries in the next 3years
Middle East – Kuwait, Oman, Saudi, Iraq, Iran, TurkeySouth America - Colombia, Ecuador, Brazil, Argentina,
PeruCentral America – Trinidad, Cuba, MexicoCentral Asia – Kazakhstan, Azerbaijan, RussiaEurope – Albania, Italy, RomaniaAfrica – Nigeria, Congo, Cameroon, Chad, Madagascar
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Desulphur Technology
Bayshore signed Master license right in Canada with a private technology company, which owns 9 patents related to desulphuring of hydrocarbon fluid using Ultrasonic technology.
The technology has been lab and field tested and achieved satisfactory low sulphur results (< 30 ppm) on Gasoline, Light oil, diesel, Naphtha, heating fuel and other product Oil
Bayshore will work closely with the group to expand the technology in other application
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Desulphur Technology
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IUT (Patented Ultrasonic Technology)
Potential 2,000 bpd handling capacity
Funding Requirement
Bayshore is seeking global joint venture opportunities in heavy oil and bitumen to expand the exploitation of CCC and Ultra Sonic Technology worldwide
Bayshore is raising CAD $5 million maximum in a non-brokered private placement from strategic accredited investors to expand the business worldwide
Offering priced at $0.20 per share with minimum subscription $250,000
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Funding Requirement
Use of Proceeds:working capital and engineering design (EPC)Securing more Desulphurization and CCC Licenses in
target countries. Joint venture and asset acquisitions
It is anticipated at least 3 major upgrader and / or desulphurization projects will be secured in the next 6-12 months
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Future Capital Requirement
Bayshore expects more financing to be done in the next 18 months ($50-$100 Million)
It will be either Project Financing or Structure Financing (Debt/Bond issuance) so not to dilute the existing shareholder’s position.
Total outstanding shares will limit between 80 million to 100 million shares
Total Asset with all the business opportunities and investment is targeted to be over $500 million in 3 years.
Positive cashflow / earnings is projected in mid 2015.
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CONTACT
Mark [email protected]
+1 403 615 0050
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Peter [email protected]
+1 403 630 4355+852 9160 4450 Hong Kong
Head Office:Suite 1050, 1122-4th Street SW
Calgary Alberta T2R 1M1+1 403 265-8820