Oil Exploration & Production Co.-Seeking $15MM Debt/Equity Investment (ID: 958298)

Business Description

The Company is an oil exploration and production company (E&P) seeking a debt or equity investment of $5MM initially, plus $10MM final stage for crude oil extraction of a large, proven oil field in Texas. It currently holds 10% of the lease to the specific oil reserve, and is looking to gain complete control of their reserve by acquiring the remaining 85% of the lease rights. Operational control of the Company is dictated by whoever owns at least 51% of the lease. With control of the lease, the Company intends to conduct a pilot drilling project (from the initial $5MM investment), to determine optimal production rates. With the $10MM final stage investment, additional drilling can begin as soon as six months after the pilot project is underway. Various means of testing, including well penetrations, logs, core data, and production history have already been conducted to confirm that oil is contained in quality sands with high oil saturations and good permeability. Summary: **Production of 4,000+ acres with $6B of oil in place. **Proven oil field-verified by two independent reserve analyses. **Shovel-ready project with production commencing within 3 months of initial drilling. Highlights: **Looking to fund purchase of pilot project for production of heavy oil which is ready for immediate drilling; information collected during pilot project to be used when drilling additional wells. **Engineering data confirms current value of oil in place in reserve exceeds $6B. **Initial $5MM investment will fund pilot project while additional $10MM to be used, shortly thereafter, toward drilling of remaining oil in place. **Favorable SEC rule being implemented January 1, 2010 will allow for companies in this industry to include more assets than they could previously, thereby strengthening their balance sheets.

About the Sale

Reason For Selling: Seeking debt or equity investment of $15 million.

LISTING KEYWORDS: oil exploration, oil production`, debt investment, equity investment, crude oil, oil field