presentation fiona
TRANSCRIPT
LUCA ENERGY INVESMENT SEMINAR
By Fiona Tran
Fund Manager
Luca International Group LLC.
2012.10.16
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.
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
Presentation Agenda Today
• Overview of the oil & gas industry• How LUCA got started• What LUCA offers• LUCA projects• Technology• Summary• Q & A
»
Industry Overview
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)
World Population and Energy Usage
World Population Growth
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.
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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
Energy Crisis in China
Source: BP Statistical Review
Overview of the Oil & Gas Industry in U.S.
Global Energy Demand Estimation
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
Energy Status in U.S.
美国天然氣 & 原油分布
天然氣 & 原油 - 油气管道网 20 万 mile
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!
26
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
Overview of LUCA
Ms. Bing Yang
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
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
LUCA International Group
Corporate
Headquarters Fremont, CA
Los Angeles
Oakland
HK
北京 Houston, TX
Operations
Beijing
Office Locations
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)
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
• 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
Luca Project Offerings
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
Luca Oil LLC($43 Million Fund)
Financial Section
2012.10
• 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
$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
$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%
$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
LUCA Energy Fund Regional Center –
Green Card program
Luca Energy Fund Regional Center
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
Sample Prospect - WPB
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
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
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
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
Monthly Report Sample
Tax Incentives
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 )
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.
Technology
Old Method - 2D Seismic Data
New Method- 3D Seismic Data
Low Risk 3-D Technology
http://www.geoart.com/offshore/offshore_seismic.php
http://www.geoart.com/offshore/offshore_seismic.php
Drilling Site
Government Monitoring
Production
Storage
Completion
Well Head
2 gas sands at 2500 ft Brightspot at 770ms
A
B
A
B
4BCF/3wells390acres
Shallow Target Visualization and Interpretation
400acres 1000arces
.5BCF/1well200arces
The LUCA Way
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.
Horizontal Technology
Crude Oil and Natural Gas Exploratory and Development Wells
Map - Oil and Gas wells
Investing in Oil & Gas
Process of Oil and Gas Drilling
1. Drilling 2. Testing
3. Completing 4. Production
Why invest in Oil & Gas?
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
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
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
Oil Is The World’s Currency. We Look Forward to Partnering With You On A Rewarding
Opportunity.
Questions?
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