Presentation fiona

72
LUCA ENERGY INVESMENT SEMINAR By Fiona Tran Fund Manager Luca International Group LLC. 2012.10.16

Transcript of Presentation fiona

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LUCA ENERGY INVESMENT SEMINAR

By Fiona Tran

Fund Manager

Luca International Group LLC.

2012.10.16

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Fund ManagerFiona Tran

Fiona joins LUCA with over 5 years of experience in Finance and Real Estate. She started her career as a real estate agent, doing transactions with high end clients including: Fortune 500 C-level executives, investment bankers, corporate attorneys and business owners. In addition to getting her Bachelor’s degree in finance, Fiona also obtained her NASD Series 7 and Series 63 license and received investment banking training on Wall St.

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Disclaimer

INFORMATION PURPOSES ONLY

NOT INTENDED TO SOLICIT INVESTMENTS

NO ASSURANCES AS TO ACCURACY

INFORMATION PRESENTED MAY CHANGE AT ANY TIME

PAST PERFORMANCE NOT INDICATIVE OF FUTURE PERFORMANCE

NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER

HIGH DEGREE OF RISK

CAREFULLY REVIEW RISK FACTORS AND INFORMATION

DO NOT PROVIDE LEGAL, ACCOUNTING OR INVESTMENT ADVICE

INFORMATION IS CONFIDENTIAL AND MAY NOT BE SHARED

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Presentation Agenda Today

• Overview of the oil & gas industry• How LUCA got started• What LUCA offers• LUCA projects• Technology• Summary• Q & A

»

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Industry Overview

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Misconception vs. Facts

1) High risk industry

Industry success rate, 90%

2) U.S. doesn’t allow exploitation of local oil

100%Tax Benefit

3) Big Enterprises Domination

SMEs Produce 50% oil and 60% gas

4) No Oil to drill

-22 Billion barrels of proven oil reserve in the U.S. - $1540 Billion industry (22 billion barrels of oil x $70 per barrel)

-214 Trillion MCF gas reserves in the U.S. - $642 Billion industry (214 trillion cubic feet of gas x $3 per thousand cubic feet)

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World Population and Energy Usage

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World Population Growth

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For Education Use Only

Source: Petrie Parkman & Co. / John S. Harold, Inc. Pacesetters Energy Conference 2005

0

5

10

15

20

25

30

U.S.

Sout

h Ko

rea

Japa

n

Germ

any

Russ

ia

Brazil

China

Indi

a

Barr

els

per

pers

on p

er

yr.

3X

8X

Annual - Per Person Consumption

© Luca International Group LLC

Oil Demand

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Energy Crisis in China

Source: BP Statistical Review

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Overview of the Oil & Gas Industry in U.S.

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Global Energy Demand Estimation

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Crude Oil Usage

Cosmetics, plastics, paint, auto gas, roads, buildings, industrial, lubricants, Ink, crayons, chewing gum, detergent, deodorant, eyeglasses, tires, ammonia, heart valves replacement.Source : The Truth About Oil By Michael Schaefer

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Energy Status in U.S.

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美国天然氣 & 原油分布

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天然氣 & 原油 - 油气管道网 20 万 mile

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Boiler Avenue, Spindletop, Texas 1903

The densest drilling in US. By 1903, more than 400 wells had been drilled on the dome. In 1925, the Second boom with discovery at ~2500ft By 1927, production reached its peak of yearly 21 million barrels.In 1960s, deep oil production achieved in depth of ~5000 ftBy 1985 Over 153 million barrels of oil had been produced.Exploration/Production is still going on in 2009!

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The Lucas Gusher, 1901

Jan 10th, 1901-- the birth of modern oil industry "Black Gold" erupted from 1139 ft depth under a hill (Spindletop salt doom) to a height >150 feet. At 100,000 barrels of oil a day, the gusher tripled U.S. oil production overnight. The gusher was responsible for creating many companies, including Gulf Oil, Amoco, Texaco, Exxon.

Gulf Coast Has Long Production History

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Overview of LUCA

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Ms. Bing Yang

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Management Team

Paul WongVP of Exploration

Anthony V. PollaceCFO

Amy FlemingHR Director

Ken WongController

Caroline Cao In-House General Counsel

Lily LeiLA District Manager

John HanVP of Production

Angie YipDirector of Marketing

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Bing Yang – President and CEO

Ms. Yang has over 20 years of management and financial service experience. She brings a broad understanding of the oil and gas industry and specializes in the areas of project management, operations, and acquisitions of mineral properties.

Paul Wong – Executive Vice President of Exploration & Production

Paul is a seasoned and skilled Geophysicist and Geologist with over 30 years of experience in the Gulf Coast development and exploration area. He previously worked for both major and independent oil

companies including: BP, Mobil, Nexen, and King Ranch.

John Han - Vice President of Production

John has over 30 years of successful petroleum engineering and management experience at a global level. He held key positions at major companies such as: Forest Oil, Halliburton, Hunt Oil, Conoco and Kerr McGee Corporation.

Anythony Pollace – Chief Financial Officer

Tony has over 30 years experience in finance and management, as CFO, CEO and COO. He led and advised energy resource and high tech companies from startup to public fortune 50 status.

Management Team

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LUCA International Group

Corporate

Headquarters Fremont, CA 

Los Angeles

Oakland

HK

北京 Houston, TX

Operations

Beijing

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Office Locations

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Company Structure

Luca Resources

Group LLC ( Operator TX )

Luca Operation LLC (LA)

Luca Asset Management

Inc.( EB5 Oakland

CA )

Luca International Group LLC(Holding Company)

Global Oil Capital Ltd.

(Hong Kong)

Black Gold Investment

LLC(Beijing, China)

Luca To-Kalon

Energy LLC($30M)

Petrol Capital LLC

(CA)

Sinotex($300M)

Luca Oil, LLC.

($43M,TX)

LBSJV

Luca I, LP($50M)

Luca Energy

Fund LLC.( RC TX)

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Best investment opportunities in North America.

Combined over 100 years management experience

Oil and Gas Projects located in lucrative GOM

Partner with high credibility INDUSTRY Operators/Vendors

Luca Success Factors

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• Strategy that focuses on developmental or mature oil wells

• Latest Technologies: 3-D seismic imaging, directional drilling & recovery techniques

• Extensive field studies and data

• Strategic partnership to maximize profits & reduce risk

• Diversification among multiple wells

• Talented team of industry veterans

Risk Management

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Luca Project Offerings

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Investment Projects at LUCA

Project Name $43 Million(2010-2012)

$20 Million(2012)

$300 Million (2013)

EB-5Immigration

( 2011-

2021 )

Minimum Investment

Amount

$330k $50K $10 Million   $500K or 1Million

FeaturesLow Risk,

Profit Generating, High return

potential

High return potential,Reduce Taxable Income

Economic Scale,

Investment Diversified

Green card3% Annual

Return5yr Payback

Period

Suitable for1st time

InvestorsTax Shelter Accredited

InvestorsImmigration

Status Closing Starting In-Process 40 Units Left

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Luca Oil LLC($43 Million Fund)

Financial Section

2012.10

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• Investment Available: $3,300,000• Price: Per Unit $11,000• Units Available: 300• Documents: PPM and Subscription Agreement• Reg D Offering• Compliant with all Federal/State regulations

LOL $43 MM Fund Offering

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$43 MM Fund (LOL) Highlights

Notes:Assumptions of Financial Model is based on current economic analysis. Future financial performance is not guaranteed.

Payback period: 4 Years

10 Year total return: 2.4 times

10 Year Internal Rate of Return: 21%

Monthly distribution after 6 months

No management fee until investor recoups initial investment

Invest in total 20 wells

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$43 MM Fund (LOL) Pro Forma

Assumptions:Invest $43,000,000 in 20 wells with average 45% working interest each.Gas price will increase by 3.8% annually, based on EIA Annual Energy Outlook 2012Gas production will decline by 10% annually.Estimated total gas production from new wells: 1654 MCFPD/well

Oil price will increase by 4.3% annually, based on EIA Annual Energy Outlook 2012Oil production will decline by 10% annually.Estimated total oil production from new wells: 920 BOPD/well.Investment Profit After Adjustment includes net revenue from current producing wells

Notes:• Year 1 has 180 production days for the15 new wells assuming it takes half a year for drilling and completion.• Assumptions of the financial model is based on current economic analysis. Future financial performance is not guaranteed.

Year Oil Price

OilInvestment

Profit/yrGas

Price

GasInvestment

Profit/yr

InvestmentReturn from

Oil+Gas

Investment Profit after Adjustment

AccumulatedProfit

Annual Return

%

AccumulatedReturn

%

1 $80.00 $6,178,867 $2.00 $277,713 $6,456,580 $7,830,746 $7,830,746 18% 18%2 $83.44 $11,600,205 $2.08 $518,879 $12,119,085 $13,355,834 $21,186,580 31% 49%3 $87.03 $10,889,113 $2.15 $484,737 $11,373,850 $12,486,924 $33,673,504 29% 78%4 $90.77 $10,221,610 $2.24 $452,841 $10,674,451 $11,676,218 $45,349,723 27% 105%5 $94.67 $9,595,025 $2.32 $423,044 $10,018,070 $10,919,660 $56,269,383 25% 131%6 $98.74 $9,006,850 $2.41 $395,208 $9,402,058 $10,213,490 $66,482,872 24% 155%7 $102.99 $8,454,730 $2.50 $369,203 $8,823,934 $9,554,222 $76,037,094 22% 177%8 $107.42 $7,936,455 $2.60 $344,910 $8,281,365 $8,938,625 $84,975,719 21% 198%9 $112.04 $7,449,951 $2.70 $322,215 $7,772,165 $8,363,699 $93,339,418 19% 217%10 $116.86 $6,993,269 $2.80 $301,013 $7,294,282 $7,826,662 $101,166,079 18% 235%

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$43 MM Fund (LOL) Track Record

May

-10

Jun-

10

Jul-1

0

Aug-1

0

Sep-1

0

Oct-1

0

Nov-1

0

Dec-1

0

Jan-

11

Feb-1

1

Mar

-11

Apr-1

1

May

-11

Jun-

11

Jul-1

1

Aug-1

1

Sep-1

1

Oct-1

1

Nov-1

1

Dec-1

1

Jan-

12

Feb-1

2

Mar

-12

Apr-1

2

May

-12

Jun-

12

Jul-1

2

Aug-1

2

Sep-1

2 $-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

LOL Monthly Distributable Income

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LUCA Energy Fund Regional Center –

Green Card program

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Luca Energy Fund Regional Center

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Highlight of Luca Energy Fund Regional Center

1. One and only oil drilling Regional Center in the USA

2. $50M Fund. $13M from LUCA and $37M from EB-5 investors.

3. Minimum $500K investment

4. Gets green card for the whole family (kids under 21)

5. 3% interest starting 2nd year

6. $500k investment will be returned to investor at the end of 5 years

USCIS Link

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Sample Prospect - WPB

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Project Name: West Plumb Bob

Location: St. Martin Parish Southern Louisiana Onshore Northern Gulf of Mexico

Comment: One of the most energy rich basins in the world.

_____________________________________________

Project Name: SAN JAC

Location: 25 Miles north George Bush Airport Near Houston, Texas

Comment: Two new structural traps discovered from 3D seismic survey in 2009.

_____________________________________________

Project Name: Belle Grove

Location: Louisiana

Comment: Deeper pool wildcat on the crest of Laurel Ridge.

Summary Table: West Plumb Bob

Net Acreage: 1200 aces

Est. Prospective Resources 600 BCF 30 MBC

LUCA Working Interest 92.75%

Summary Table: Belle Grove

Net Acreage 847 + 700 (pending) aces

Est. Prospective Resources 359 BCF 26.8 MBC

Working Interest / NRI 100%

Summary Table: SAN JAC

Net Acreage 400 aces

Est. Prospective Resources 40 BCF 5 MBC

Working Interest / NRI 60%

Summary – LUCA prospects

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Project Name: Luca Barfield

– Location: Southwest area of Texas that covers an area of approximately 1100 acres.

– Comments: Will drill 12 wells total investment $16 million

– Yield an expected cost recovery over the next three years.

– Owns 85% controlling stake in the field.

– ________________________________________

Project Name: Bull Moose

– Location: Louisiana,

– Comments: Owns 85% controlling stake in the field.

– __________________________________________

Project Name: Pandura

– Location: Texas

– Comments: Owns an 60% controlling stake in the field.

– __________________________________________

Project Name: Golden Bend

– Location: Profit Island, Texas

– Comments: Owns an 90% controlling stake in the field.

Summary Table: Luca Barfield

Net Acreage: 100 aces

Est. Prospective Resources 20 BCF 100 MBC

LUCA Working Interest / NRI 85%

Summary Table: Pandura

Net Acreage 420 aces

Est. Prospective Resources 25 BCF 10 MBC

Working Interest / NRI 60%

Summary Table: Bull Moose

Net Acreage 28 aces

Est. Prospective Resources 1.6 BCF 550 MBC

Working Interest / NRI 85%

Summary Table: Golden Bend

Net Acreage 140 aces

Est. Prospective Resources 50 MBC

Working Interest / NRI 90%

Summary – LUCA prospects

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Summary-W. Plumb Bob

• PTD 18,100ft• 5 WX Target Sands• 600 BCFG + 30MM BBL• 100 day drilling, 39 days to complete• Lifespan: Over 15 years, • If it’s successful, $200 million additional for

project development to drill at least 5 more wells

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Summary – W.Plumb Bob

• Total Reserve: 600BCF + 30MM BBL• Cost per Well: $20 million• Estimated ROI: 12 Times• 600BCF X $3MCF=$1.8 Billion• 30MM BBL X $60/BBL = $1.8 Billion• $1.8 Billion + $1.8 Billion = $3.6 Billion• ROI = $3.6 Billion / $20 Million/10 Wells

= 12 times

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Monthly Report Sample

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Tax Incentives

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Why Invest in Oil and Gas Drilling Ventures

8.Tax BenefitsThanks, Congress

1)Investment Tax Credits of Up to 100%

(1.Tax reform act of 1986 Section 469 ( c )(3)of the Tax Code.

2)Annual Revenue savings of 15% Federal Tax (See Section 263 of the Tax Code)

(2.Job creation act of 2002 K-1 Form )

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Tax Incentives

• Oil and Natural gas from domestic

reserves helps to make the country

more energy self-sufficient by reducing

our dependence on foreign imports.

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Technology

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Old Method - 2D Seismic Data

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New Method- 3D Seismic Data

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Low Risk 3-D Technology

http://www.geoart.com/offshore/offshore_seismic.php

http://www.geoart.com/offshore/offshore_seismic.php

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Drilling Site

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Government Monitoring

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Production

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Storage

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Completion

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Well Head

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2 gas sands at 2500 ft Brightspot at 770ms

A

B

A

B

4BCF/3wells390acres

Shallow Target Visualization and Interpretation

400acres 1000arces

.5BCF/1well200arces

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The LUCA Way

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Oil and Gas Underground

Several geologic elements are necessary for oil and gas to accumulate in sufficient quantities to create a pool large enough to be worth producing.

Organic-rich source rock to generate the oil or gas,

Porous reservoir rock to store the petroleum in,

Some sort of trap to prevent the oil and gas from leaking away.

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Horizontal Technology

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Crude Oil and Natural Gas Exploratory and Development Wells

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Map - Oil and Gas wells

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Investing in Oil & Gas

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Process of Oil and Gas Drilling

1. Drilling 2. Testing

3. Completing 4. Production

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Why invest in Oil & Gas?

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Summary

1. Demand > Supply

2. High Annual Return (Only 6-9 Months Waiting Period)

3. Declining reserves

4. Alternatives Can’t Solve Problem

5. Emerging Markets

6. Commodities Against Inflation

7. Tax Incentive

8. Good Opportunity for Immigration

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Why Invest in LUCA

• Average ROI of 20%- 30%• 100% tax deduction• Qualify for free financial aid• Payout in as little as 6 months• Reduced risk – 15 wells are already drilled and 9

wells are currently producing oil• Diversified portfolio of wells in strategic mature

oil producing locations• Low management fee – Luca charges 12% of

profit only after investor earns back full principals

• Low minimum investment - $330k

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1. Sign Subscription Booklet

2. Acknowledge receipt of Confidential Private Placement

Memorandum

3. Write check payable to LUCA Oil, LLC

4. Once check is clear, you’ll receive ownership certificate and

signed agreement

5. Funds are put to work, to drill the rest of the wells.

6. You’ll receive dividend checks on a monthly basis starting on

7th month

7. We’ll provide you the K-1 form for your tax deduction

8. Receive user and password to access project status online.

Investment Procedures

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Thank You!

For further information please contact:

Global Headquarters

Fiona Tran

Fund Manager

39650 Liberty Street, Suite 490

Fremont, CA 94538

Tel: 510-498-8829

Fax: 510-498-1926

WWW.LUCA88.COM