Here are my specific suggestions that I think should be included in a summary page:
( Re-written of course to reflect the level of sophistication that Beau and Michael enjoy
that have eluded Joe and I)
#1 INDEPENDENT EVALUATION OF BUSHWHACKER BY RONALD S. TABERY, P.E.
" Surprises have surfaced in the
course of due diligence for this prospect ; almost invariably they have been positive. By that I mean that
elements of risk appear minimal and manageable. Even if economic prognostications are half right,
the project appears sufficiently profitable to merit participation".
Parallel Enterprises: "Near term, the oil play is the reward. Longer term, the return from CHOP is enormous
and could dwarf the oil play". The parallel technology business represents an unparalleled opportunity for an oil
investor to gain so much more than a good oil deal.
"Principals have skin in the game. I understand 30% of the $10 MM required for the pilot program is presently
accessible through family, friends,believers, and angels. Another $7 million remains to be raised at this time,opening
the window of opportunity. I do not anticipate that the window will remain open very long."
" Bushwhacker's upside potential appears large while risks seem relatively low. Technical uncertainties are small.
Besides a darn good resource play, participation buys patent-protected technology that appears capable of
dramatically improving Heavy Oil production economics on a global scale. I believe these parallel aspects
present an unusually rare and profound opportunity for early-on participants."
#2 NO DRY HOLE RISK
Well and core data indicate that Deerfield Lobe is full of oil (hundreds to a thousand barrels per acre-ft.)
Cawley, Gillespie & Associates, Inc., one of the top six petroleum reservoir engineerings in the world have
estimated that the first lease has at least 31.5 million barrels of oil in place, and possibility up to 45.2 million
barrels.
#3 TIMING
Most oil and gas projects have at least a year in the development stage prior to the drilling.
Projects of this size can easily have a three to five year time horizon before development starts.
This project is no different, but all the work necessary to start has already been completed over
the last couple of years. Capital invested now will be put to work literally in the next few weeks
and drilling will start within ninety days.
#4 INFRASTRUCTURE, TRANSPORTATION
Moving product to market is a significant expense.
Recent deep water discoveries of oil and gas in the Gulf of Mexico may take ten years to generate revenue
as the complex and lengthy engineering hurdles have to be over come to get these reserves
to market. Bushwhacker has none of these issues. The CVR Refinery in Coffeyville, Kansa is only 80 miles away.
Two rail lines intersect near the western edge of the lease with a rail siding on the property. Rail access opens
up the possibility of supplying more remote refineries generating competition for top dollar.