the petroleum industry is in high gear … high gear …
TRANSCRIPT
The Petroleum Industry is inThe Petroleum Industry is in
HIGH GEAR …HIGH GEAR …
The Petroleum Industry is inThe Petroleum Industry is in
HIGH GEAR …HIGH GEAR …to explore and drill forto explore and drill for
MORE OIL AND GASMORE OIL AND GAS
The Petroleum Industry is inThe Petroleum Industry is in
HIGH GEAR …HIGH GEAR …to explore and drill forto explore and drill for
MORE OIL AND GASMORE OIL AND GAS• World demand continues to rise dramatically
• Private companies are investing billions of dollars in exploration and drilling programs for new wells
• Governments are investing billions of dollars in joint ventures with private industry
The Petroleum Industry is inThe Petroleum Industry is in
HIGH GEAR …HIGH GEAR …to explore and drill forto explore and drill for
MORE OIL AND GASMORE OIL AND GAS
Increasing oil and gas pricesare creating
EXCITING BUSINESS EXCITING BUSINESS OPPORTUNITIESOPPORTUNITIES
in Canadain Canada
EMPIREEMPIREINTERNATIONAL SERVICE INTERNATIONAL SERVICE
RIGS INC.RIGS INC.
was formed in 2005to take advantage ofthese opportunities.
Global Crude Oil Reserves
Global Crude Oil Reserves
CanadaQuick Oil Facts
7th Largest in World Oil Production (projected 4th by 2015)
3rd Largest in World Natural Gas Production
2nd Largest in World Crude Oil Reserves
Source: Canadian Heavy Oil Association
80% of Canada’s spending in the oil and gas industry is in …
ALBERTA
Population:3.3 million
AlbertaOne of 10 Canadian Provinces
Size:660,000 sq. km.(2 x Norway)
Capital City:Edmonton
Largest City:Calgary
Major Attractions:- Banff- Lake Louise- West Edmonton
Mall
Oil Reserves:Truly Immense!
AlbertaA “Business-oriented” Province
Economy:
Alberta produces:70% of all Oil80% of all Natural Gas
in Canada
Government:
Alberta Western CanadaOperating oil wells (Dec. 2007) 32,500 70,000Operating gas wells (Dec. 2007) 96,000 128,600Total operating wells (*source CAPP) 128,500 198,600
Active service rigs (avg/July, 2008) 450 600
(*source CAODC)
The OpportunityThe Opportunity
Alberta Western CanadaOperating oil wells (Dec. 2007) 32,500 70,000Operating gas wells (Dec. 2007) 96,000 128,600Total operating wells (*source CAPP) 128,500 198,600
Active service rigs (avg/July, 2008) 450 600
(*source CAODC)
It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are:
~ 880 ~ 1,360
The OpportunityThe Opportunity
Alberta Western CanadaOperating oil wells (Dec. 2007) 32,500 70,000Operating gas wells (Dec. 2007) 96,000 128,600Total operating wells (*source CAPP) 128,500 198,600
Active service rigs (avg/July, 2008) 450 600
(*source CAODC)
It takes 4 – 6 days to service a well. If each well is serviced every 2 years (typical), the number of service rigs and crews required are:
~ 880 ~ 1,360
Apparently …twice as many service rigs are required
as are available.
The OpportunityThe Opportunity
Empire International Service Rigs Inc. was formed in January, 2005, to support the petroleum drilling industry.
Empire manufactures and sells equipment to the companies that provide well services (service rig operators).
Empire also refits and repairs existing equipment for gas and oil well operators and drilling contractors.
Empire operates from Edmonton, Alberta, in the heart of Canada’s exploding oil and gas industry. The company is in a perfect position to capitalize on the current worldwide petroleum boom.
The CompanyThe Company
ProductsProducts
Service RigsPump TrucksDoghouse TrailersMud TanksJunk TrucksCombination BuildingsCustom Single Man Cabs
ServicesServices
• Heavy Duty Mechanical• Welding• Electrical• Field Service• Pneumatic Design & Repair• Hydraulic Design & Repair• Inspections• Engineering
FacilitiesFacilities
We started in 2005 with a tiny 500 sq. ft. office and shop.
TODAY …
FacilitiesFacilities
TODAY … 50,000 sq. ft. of office andheavy-duty shop with large yard space.
Our TeamOur Team
DIRECTORSDIRECTORS
ADVISORSADVISORS
John TjeltaPresident
S.O. (Roy) Tjelta, AMAChairman of the Board
Peter Jensen, LLB Victor Leginsky, LLB Ken Lee, CA
SALES TARGETS METfor Year 3 (2007) - $ 5.4 millionin spite of industry slowdown due to Alberta manpower shortage.
Completion of MANUFACTURE OF 2 NEW “SLANT RIGS”featuring several improvements to existing technology.
DESIGN of NEW EQUIPMENT for OFFSHORE RIGSfor markets in North Sea, Gulf of Mexico and Middle East.
JOINT VENTURE PARTNERSHIPS with Chinese oil equipment manufacturers
SALES OFFICE in SOUTH AMERICA
AchievementsAchievements
DIVERSIFICATION – Today’s Key to SuccessDIVERSIFICATION – Today’s Key to Success
GEOGRAPHICAL:USA and Global Petroleum Industry
NON-CONVENTIONAL TECHNOLOGIES:Alberta Oil Sands
COMPLEMENTARY BUSINESS:Industrial Metal Fabrication
PETROLEUM EXPLORATION:Limited Partnership
StrategyStrategy
GEOGRAPHICAL: Global Markets
The world petroleum industry is very healthy
• USA manufacturers operating at capacity
• Excellent opportunities around the world
- Offshore drill and service rigs - Russia, Kazakhstan, Germany,
Pakistan
Empire has active bids out on several international projects.
DiversificationDiversification
ALBERTA OIL SANDS: Ft. McMurray Area
Purchase of 3 active companies
• Mechanical Construction• Engineering Consulting and Design• Crane Services
COMPLEMENTARY BUSINESS: Metal Fabrication
Company specializes in high-tech LASER metal cutting
• would be first in Ft. McMurray area
DiversificationDiversification
PETROLEUM EXPLORATION
Formation of Limited Partnership to seek and acquire producing oil and gas wells
• Major oil companies now focus on mega projects• Smaller properties becoming available• Excellent “niche” opportunity• Perfect fit with Empire Group to supply equipment
DiversificationDiversification
PETROLEUM EXPLORATION
Formation of Limited Partnership to seek and acquire producing oil and gas wells
• Major oil companies now focus on mega projects• Smaller properties becoming available• Excellent “niche” opportunity• Perfect fit with Empire Group to supply equipment
A new corporate structure will be required for this diversification program.
DiversificationDiversification
EMPIRE INTERNATIONAL ENERGY Inc.
To be incorporated in Canada or Norway
Funds to be raised by IPO through European broker(s) for:
• interest in Ft. McMurray group of companies
• financing Norsk Oil and Gas Drilling Fund Partnership
• working capital
New Corporate StructureNew Corporate Structure
Corporate OrganizationCorporate Organization
NorskOil & Gas
Drilling Fund
RaceCrane
RaceEngineering
AquaAlberta Ltd.
ChargerInternational
Metal FabricationInc.
Empire International Service Rigs Inc.
The cornerstone of the Empire Group, formed in Jan./05 to support the petroleum drilling industry.
Manufactures and sells equipment to the companies thatprovide oil and gas well services (service rig operators).
Has met and exceeded sales targets for first 3 years.
Invested substantially in R & D of new technologies -• will reap huge benefits in 2008 and 2009
Recognizes need to diversify for growth and stability.
The Empire GroupThe Empire Group
Charger International Metal Fabrication Inc.
A stand-alone division of Empire International Service Rigs Inc.
Formed to provide CNC (Computer Numeric Controlled) LASER cutting, CNC forming, and welding.
Will be main provider of sheet metal fabrication services to theEmpire Group of companies.
Planning to expand to Ft. McMurray to serve Oil Sands projects.
The Empire GroupThe Empire Group
Aqua Alberta Ltd.
New company formed from purchase of shares and assets of Aqua Industrial Ltd., Race Engineering, and Race Crane
Aqua Industrial Ltd. – a profitable operating company• 20 years in Oil Sands area• Current Sales > $35 million / yr.• Workforce > 250 persons
With new management team and working capital:• Expected Sales in 2011 > $255 million• Est. minimum profit: 15%
The Empire GroupThe Empire Group
Norsk Oil and Gas Drilling Fund
General Partner to seek opportunities to acquire producing oil and gas wells, including those abandoned by major petroleum
companies in favour of “mega-projects”.
Headed by Dr. John Little, who has a successful history spanning over three generations in this area.
The Empire GroupThe Empire Group
Funding from IPO: $25,000,000.00
Application of IPO funds:Purchase of Aqua Industrial Ltd. $ 7,800,000.00Aqua Working Capital $ 4,200,000.00Empire Service Rigs $10,000,000.00
(production line & working capital) Charger Metal Fabrication $ 2,000,000.00
Norsk Drilling Fund $ 1,000,000.00
Total funds required $ 25,000,000.00Brokers Fees $ 3,000,000.00
Total funds to be raised $ 28,000,000.00
Funding RequirementsFunding Requirements
RevenuesRevenues
2008 2009 2010 2011
Aqua 49,000,000 114,500,000 186,300,000
ChargerFrom Aqua
200,000
6,000,000 18,000,000 26,000,000
EmpireFrom Aqua
7,000,000 20,000,000
900,000
25,000,000
5,400,000
46,000,000
8,300,000
Race Eng. 28,100,000 29,800,000 34,400,000
Race Crane
Norsk
Total Sales 7,200,000 104,000,000 192,700,000 301,000,000
Net Profit 10% = 720,000 20% = 20,800,000 22% = 42,394,000 22% = 66,220,000
Norsk Net Profit 0 500,000 1,000,000 3,000,000
Total Net Profit 720,000 21,300,000 43,394,000 69,220,000
Shares issued to date: 13,000,000
Shares issued via IPO @ 3 E: 6,000,000
Total shares outstanding after IPO 19,000,000
Profit projected in 2009 $ 21,300,000
P/E Ratio 1.12
EXCEPTIONAL?
Share StructureShare Structure
New Company
Rapidly growing industry- both domestically and internationally
Huge market opportunity- current shortfall and growing
Forcing growth of company by acquisition- exceeding our expectations
Profitable in first year of operation
Conservative management philosophy
Future opportunities in leasing
SummarySummary
We are in
• the right industry
• the right country, and
• the right province, at
• the right time.
Our immediate objective is a listing on the Oslo Stock Exchange.
• Acquire a Sponsoring Broker• Complete Seed Share Offering• List Empire International Energy Inc. on Oslo Exchange• Raise $28,000,000 through an I.P.O.
to allow continued company growth for the benefit of shareholders
Thank you.
What now?What now?