presents direct investment in oil and gas reserves
TRANSCRIPT
Presents
DIRECT INVESTMENT IN OIL AND GAS RESERVES
The United States and Canada Allow Private Ownership of Oil and Gas
Resources
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 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
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
The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency
The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency• Heavily Regulated Industry
The United States and Canada Allow Private Ownership of Oil and Gas
Resources
Transparency• Heavily Regulated Industry
• Oil and Gas Production Reported Publicly
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
Oil and Gas Industry is an Efficient Micro-Economic Business Model
Oil and Gas Industry is an Efficient Micro-Economic Business Model
• The World’s Strongest Economy Sets Market Prices
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)
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)
Oil and Gas Industry is an Efficient Macro-Economic Business Model
Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
Oil and Gas Industry is an Efficient Macro-Economic Business Model
• Oil and Gas Reserves have become an International Currency
• US Dollar Denominated
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
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
Three Stages of Activity in an Oil Field
Three Stages of Activity in an Oil Field
• Exploration:Very High Risk, Very High Reward
Three Stages of Activity in an Oil Field
• Exploration
• Developmental:Low Risk, High Reward
Three Stages of Activity in an Oil Field
• Exploration
• Developmental
• Reserve Asset: Very Low Risk, Modest Reward
SK & CO Specializes in Developmental Oil and Gas Projects
SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
• Acquire Additional Acreage
SK & CO Specializes in Developmental Oil and Gas Projects
• Purchase Existing Production
• Extend Scientific Data
• Acquire Additional Acreage
• Commence Developmental Drilling
Return of Investment precedes
Return on Investment
Return of Investment precedes
Return on Investment
• Typical Oil or Gas Well Returns 100% of Investment in 18-24 Months
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
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
Unique Financial Model
Unique Financial Model
• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling
Unique Financial Model
• SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling
• Minimizes The Use of Capital
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
Summary of Proposal
Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
Summary of Proposal
• Avoid Exploration Risks by Purchasing Existing Production
• Expand Reserves with Developmental Drilling
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
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
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