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Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES.

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Presentation on theme: "Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES."— Presentation transcript:

1 Presents DIRECT INVESTMENT IN OIL AND GAS RESERVES

2 The United States and Canada Allow Private Ownership of Oil and Gas Resources

3 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

4 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

5 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

6 The United States and Canada Allow Private Ownership of Oil and Gas Resources Transparency

7 The United States and Canada Allow Private Ownership of Oil and Gas Resources Transparency Heavily Regulated Industry

8 The United States and Canada Allow Private Ownership of Oil and Gas Resources Transparency Heavily Regulated Industry Oil and Gas Production Reported Publicly

9 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

10 Oil and Gas Industry is an Efficient Micro-Economic Business Model

11 Oil and Gas Industry is an Efficient Micro-Economic Business Model The World’s Strongest Economy Sets Market Prices

12 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)

13 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)

14 Oil and Gas Industry is an Efficient Macro-Economic Business Model

15 Oil and Gas Industry is an Efficient Macro-Economic Business Model Oil and Gas Reserves have become an International Currency

16 Oil and Gas Industry is an Efficient Macro-Economic Business Model Oil and Gas Reserves have become an International Currency US Dollar Denominated

17 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

18 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

19 Three Stages of Activity in an Oil Field

20 Exploration: Very High Risk, Very High Reward

21 Three Stages of Activity in an Oil Field Exploration Developmental: Low Risk, High Reward

22 Three Stages of Activity in an Oil Field Exploration Developmental Reserve Asset: Very Low Risk, Modest Reward

23 SK & CO Specializes in Developmental Oil and Gas Projects

24 SK & CO Specializes in Developmental Oil and Gas Projects Purchase Existing Production

25 SK & CO Specializes in Developmental Oil and Gas Projects Purchase Existing Production Extend Scientific Data

26 SK & CO Specializes in Developmental Oil and Gas Projects Purchase Existing Production Extend Scientific Data Acquire Additional Acreage

27 SK & CO Specializes in Developmental Oil and Gas Projects Purchase Existing Production Extend Scientific Data Acquire Additional Acreage Commence Developmental Drilling

28 Return of Investment precedes Return on Investment

29 Return of Investment precedes Return on Investment Typical Oil or Gas Well Returns 100% of Investment in Months

30 Return of Investment precedes Return on Investment Typical Oil or Gas Well Returns 100% of Investment in Months 20 to 30 Years of Production Follows Return of Capital

31 Return of Investment precedes Return on Investment Typical Oil or Gas Well Returns 100% of Investment in Months 20 to 30 Years of Production Follows Return of Capital Remaining Reserves Decline Over Time and Are Valued Accordingly

32 Unique Financial Model

33 Unique Financial Model SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling

34 Unique Financial Model SK & Co. Reinvests Cash Flow From Current Production Into Further Developmental Drilling Minimizes The Use of Capital

35 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

36 Summary of Proposal

37 Avoid Exploration Risks by Purchasing Existing Production

38 Summary of Proposal Avoid Exploration Risks by Purchasing Existing Production Expand Reserves with Developmental Drilling

39 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

40 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

41 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


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