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America’s First Environmentally-Responsible
Oil Sands Project Ramping Up Production
Corporate Presentation – Q3 2016
2
Corporate Overview
2
MCW Energy Group Ltd:
MCW Oil Sands Recovery, LLC – Revenue Streams:
(1) Oil Sands/Shale Extraction Technologies:
Focused on the development & implementation of a portfolio of
enviro-friendly oil sands/shale extraction technologies.
Developing worldwide joint venture opportunities and royalty
revenue streams from licensing applications.
(2) Remedial Extraction Projects: Remedial hydrocarbon extraction solutions on tailings ponds
and water contamination projects in the oil & gas industry.
(3) Producing Oil Sands Projects:
Expanding production capabilities at its now operational oil
sands project in Asphalt Ridge, Utah.
3
Management Team
3
Dr. R. Gerald Bailey, Chief Executive Officer.
50+ years international experience in all aspects of the oil & gas
industry.
Former positions include…
President, Exxon, Arabian Gulf, Abu Dhabi, UAE.
Operations Manager, Qatar General Petroleum Corp.
Operations Superintendent, Exxon Lago Oil, Aruba.
Operations Superintendent, Esso Standard Libya, Brega, Libya.
4 4
Aleksandr Blyumkin, Founder & Chairman
20+ years international experience in the oil & gas industry.
A key figure in the development of a variety of oil development
properties in Eastern Europe. His interest is focused on
developing MCW’s environmentally-friendly oil sands extraction
technologies and the expansion of MCW’s oil sands production.
Currently involved in acquiring additional oil sands leases in
Utah for MCW’s resource lease portfolio with long term potential.
Management Team
5 5
Dr. Vladimir Podlipskiy, Chief Technology Officer
20+ years experience in chemistry, research & development and
manufacturing.
Former positions include…
EMD Biosciences - Peptide Scientist, Tech Support Mgr., New Business
Development.
R&D Nanotech - Chief Chemist, Research & Development, Manufacturing.
Premier Chemicals - Chief Chemist, Formulation Chemist.
Chemical Scientist - UCLA Department of Chemistry.
Management Team
6 6
Mark Korb, Chief Financial Officer - MCW Energy Group
20+ years experience taking start-up and high growth companies to the next
level.
Served as CFO/Financial Consultant for many companies including Caldera
Pharmaceuticals, Fluid Spirit Holdings, First South Africa Management Corp &
Propel Technologies, an oil & gas service company.
Joe Abrams, Financial Advisor - MCW Energy Group.
40 years international experience as a financial analyst/financial advisor to both
mature & start-up companies.
Founder/investor/advisor to many companies including Intermix, Akeena Solar &
Zagg. An integral part of the growth of these companies. Has advised on public
market launches & research, secondary financing, strategic planning/capital
structure.
Management Team
7 7
MCW Share Metrics: OTCQX: MCWEF / TSX-V: MCW
Share Price (TSX-V): $ 0.145
Market Capitalization: $ 28.5 million
52 Week Range (Low/High) $ 0.13 - $ 1.17
Shares Outstanding (Inc. Accord acq.) 196,524,799
Warrants/Options Outstanding 9,118,798
Fully diluted 205,643,597
Management/Board Ownership 24.3% *As of July 4, 2016
*All currencies in CAD
Oil sands ore is delivered to the extractor column &
passes through patented, benign extraction solvents.
Solvents/extracted oil mixture is transferred to the
separation column. Oil is then separated from solvents,
sold to distributor/refineries.
Solvents are re-circulated back through incoming sand,
extracting more oil from incoming feedstock.
The cleaned sand is removed, dried and sold as
construction aggregate or used to restore original mine
site surface.
8 8
MCW Oil Sands Technology
How It Works
Environmentally-Responsible Technology:
MCW’s technology is a “closed loop,” solvent-based
extraction technology that uses no water in the extraction
process. Nothing leaves the extraction plant except oil and
the clean sand.
MCW’s technology will…
Not Create Polluted Tailings Ponds.
Not Cause Surface Water or Groundwater Pollution, and
Not Produce Greenhouse Gas Emissions.
MCW Oil Sands Technology
An Overview
Tailings ponds from an Alberta oil sands
project using destructive extraction
technology.
9
Economically Viable & Energy-Efficient Technology:
Modular, Scalable Technology: 250 to 5,000 bbl/day.
Low CAPEX Estimates: $12,000 per flowing bbl/day (Chapman
Petroleum Engineering, 2014).
Low Production Costs:
– $24.51 – $34.04 (Chapman Petroleum Engineering, 2012).
– Fluctuates with oil prices $30 – $50 bbl.
– MCW estimates that a 2,500 bbl/day template unit will optimize production
efficiencies with costs anticipated to range around the $20 bbl benchmark.
Energy Efficient: 22:1 EROEI (Energy Returned On Energy Invested)
(Alberta SAGD/Hot Water Averages 4:1 to 6:1)
10 10
MCW Oil Sands Technology
An Overview
Modular Plant Economics:
Processing Costs: Expected average $24 – $28 bbl range. It is
anticipated that a 2,500 bbl/day unit’s production costs will be under
$24 bbl.
Profit levels will float with variable oil prices vs. variable costs of
petro products used in extraction process. (propane, diesel fuel,
solvents, condensates).
11
MCW Oil Sands Technology
Low Production Costs
11
Plant size
Barrels per day
Gross Daily
Revenue USD
Gross Annual
Revenue USD
500 $20,000 $7,200,000
2,500 $100,000 $36,000,000
Processing Plant Economics based on 360 days operation. Above
revenues based on $40 bbl oil as a benchmark.
MCW’s recent internal study has confirmed processing costs are
dramatically reduced in tandem with lower oil prices. Petroleum
products used in MCW's extraction process…diesel fuel, propane,
condensates and solvent costs are also reduced by 40%–55% when
oil prices dip, effectively reducing processing costs.
12
MCW's Fluctuating Production Costs Will Provide
Ongoing Profits Regardless of Low Oil Prices
12
MCW Oil Sands Technology
Low Production Costs
Russia US Canada China
Pending Pending Pending
13
MCW Oil Sands Technology
Intellectual Property
13
Intellectual Property Status
MCW’s patents are filed in 30 countries including those with significant oil
sands reserves, covering: (a) solvent compositions, (b) engineering and
design of the apparatus/vessels, (c) extraction processes.
Patent protection began October 2011 - first provisional patents filed.
As of December, 2015, MCW’s patents have progressed from “patent
pending” to “patent granted” in Russia. Patent #2571827 now issued for
“oil from oil sands extraction process,” effective to 2032.
Discussions with USA, Canada & China’s patent authorities now in
progress. MCW expects by Q4-2016, they will all grant these patents after
claim changes have been finalized.
Per the U.S. DOE, Utah holds over 32 billion
bbl bitumen within 8 major deposits. The
state contains over 55% of all U.S. oil sands
deposits. MCW’s operations are in the Uintah
Basin (Asphalt Ridge), one of the major oil
sands deposits.
Excellent existing infrastructures:
New pipeline networks are currently planned.
Friendly investment environment with
attractive fiscal/royalty regimes
14
MCW Domestic Plan:
Develop Additional Oil Sands Leases
14
Oil sands before and after
MCW extraction process
Raw oil sand sample
No water is required in MCW’s extraction process. No tailings ponds required.
Extremely Energy Efficient: 22:1 EROEI (Energy Returned On Energy Invested)
Patented, benign solvent combination is completely recovered, remaining in
the closed-loop system.
15
MCW’s Extraction Plant Is The First Environmentally-
Friendly Oil Sands Production Project In North America
15
Identify and secure oil sands leases in Utah:
Secured an 1,128 acre lease with 20
million bbl. bitumen. (Chapman Petroleum
Engineering Report – 2012).
Purchased Temple Mountain’s 2,230 acre
lease with 88 million bbl bitumen. (Chapman
Petroleum Engineering Report – 2014).
Appointed Vivakor Inc. as operators of
the MCW plant site in Maeser, Utah. Vivakor
has a enviro-friendly mobile extraction tech
unit which is being installed for additional
250 bbl/day operation. Production scheduled
for end of July, 2016.
16
Domestic Business Plan:
Phase 1 – Completed
16
MCW’s original 250 bbl/day oil extraction facility under
construction, Asphalt Ridge, Utah – August, 2014.
Augmented production of 250 bbl/day program now
under way.
Construct 250 bbl/day commercial oil
sands production facility on MCW’s 1,128
acre lease site.
MCW’s first extraction facility
completed and successfully produced oil
in October, 2014…. now ramping up
production.
All regulatory/environmental
applications/permits currently being
issued/finalized.
Anticipated EBITDA over $1.7 million
annually.
17 17
Opening Ceremony Dignitaries with MCW
Chairman, Aleksandr Blyumkin & Utah Energy
Government Officials on October 1st 2014, Asphalt
Ridge, UT.
Domestic Business Plan:
Phase 2 – Completed
Fund and build a 2,500 bbl/day facility on the Temple Mountain or
MCW lease site.
Augment current operating plant capacity from 250 bbl/day to 500
bbl/day (Process is now 80% complete).
Anticipated Annual EBITDA: $24.5 million (2,500 bbl/day
production).
Deposits average 6% – 15% oil by weight.
Resource life expectancy @ Temple Mountain Energy’s lease site
has a lifespan of 50 years.
18
Domestic Business Plan:
Phase 3 – Milestones
18
Oil sands ore at the Temple
Mountain lease site.
2015 – 2016 Funding Requirements:
Design, fabricate, construct 2,500
bbl/day extraction facility on Temple
Mountain Lease.
Expand production capacity of 250
bbl/day unit to 500 bbl/day.
19 19
$30 million
$2 million
________________
$32 million Total
________________
Domestic Business Plan:
Phase 3 – Funding Requirements
MCW has entered into an agreement with Accord GR Energy Inc. to acquire
57.3% of all issued/outstanding shares in consideration for 59,698,300 shares of
MCW, & 2 million MCW Warrants @ 25 cents. Subject to Exchange Approvals.)
Accord has 2 Enhanced Oil Recovery Technologies:
SWEPT Technology: recovers hydrocarbons via improving rocks/fluids by the
use of impulse-wave-based technology.
S-BRPT Technology: recovers solid/liquid hydrocarbons through conversion
into gaseous forms. More cost-efficient extraction from deeper deposits (300’+)
not normally economically feasible.
Acquisition also includes 88 drilled/completed wells on 7,000 acres in Texas. Oil
is classified as medium crude (18-22 API)
MCW will apply these technologies to its Temple Mountain lease deposits to
increase recoverable resources at deeper depths.
20
MCW Domestic Plan: Acquire Portfolio of Enviro-
Friendly Extraction Technologies — Accord GR Energy
20
21 21
Canada 174,942,000
Venezuela 58,038,246
Kazakhstan 42,142,785
Russia 34,000,000
United States 21,600,000
China 5,970,000
Nigeria 575,826
Angola 466,483
Indonesia 423,341
Italy 300,957
Madagascar 221,703
Azerbaijan 125,395
Partial list of countries with major recoverable oil sands reserves.
All reserves in 1,000’s bbls. Most of these deposits are undeveloped
but are now extremely viable due to MCW’s low production costs.
MCW Oil Sands Technology
World Growth Opportunities
Hundreds of worldwide, major remedial projects await clean
up with MCW’s proven, enviro-friendly extraction technology.
Over 176 square kms of tailings ponds remain in Alberta,
containing unextracted hydrocarbons, bitumen, chemicals,
acids & suspended solids.
Alberta’s tailings ponds - major, growing environmental
problem and to date, no remedial technology has been
successful.
MCW has tested Alberta-sourced tailings ponds samples and
has successfully extracted over 99% of all hydrocarbons.
TS Energy Ltd., now MCW’s licensee in Canada/Trinidad,
appointed rights for the use of MCW’s extraction technology
for remedial hydrocarbon projects & oil sands production.
22
Remedial Hydrocarbon Extraction Projects
- MCW’s New Profitable Revenue Stream
22
Photo depicts a typical
tailings pond in Alberta.
There are enough tailings
ponds liquids to fill over
390,000 Olympic swimming
pools.
23
International Growth Strategy
23
MCW has already tested oil sands/shale samples from several
areas around the world, including, China, Jordan, U.S. and
Indonesia. MCW is currently in the bidding process for several
remediation projects in Canada & the Middle East.
MCW’s oil sands & remediation project technology rights have
been granted to TS Energy Ltd., Vancouver, B.C., for Canada
and Trinidad & Tobago.
MCW Oil Sands will provide licensing & joint venture
opportunities to entities around the world where extensive oil
sands deposits are found. Development of these deposits were
previously not commercially viable but are now… due to MCW’s
low production costs.
Licensing agreements will include up-front licensing fees &
production royalty streams as a source of future revenues.
MCW expects to provide over 55 skilled jobs at the plant & mine
facilities.
Hundreds of indirect jobs will be generated by the project.
Over 210 man-years have been deployed to develop MCW’s
technology & plant facilities over the past 6 years.
MCW expects to initially add over $ 17.8 million to Utah’s
annual GNP & will grow as production increases dramatically.
MCW’s expected annual revenue will grow to $ 100 million.
Overall potential oil sands revenue streams for Utah will grow
exponentially with over 32 billion barrels of the state’s oil that
can now be developed in a safe environmentally-friendly
manner.
24
Economic Benefits To Utah
24
25 25
MCW ENERGY GROUP LIMITED
Maeser, UT, Toronto, ON, Canada, Los Angeles, CA, U.S.A.
www.mcwenergygroup.com
TSX-V Symbol: MCW OTCQX Symbol: MCWEF
Future Anticipated Listings: NASDAQ/AMEX – Q3/4 2016
Paul Davey
Director of Communications:
Toll-Free: 1-800-979-1897(Ext.3), Cell: 1-778-389-0915
Email: [email protected]
Contact Information
26
Disclaimer
26
The information in this document includes certain information and statements about management’s view of
future events, expectations, plans and prospects that constitute forward-looking statements. These
statements are based upon assumptions that are subject to significant risks and uncertainties. Because of
these risks and uncertainties, and as a result of a variety of factors, the actual results, expectations,
achievements or performance may differ materially from those anticipated and indicate by these forward-
looking statements. Forward-looking statements in this document include, but are not limited to the
commercial viability of these technologies and the extraction plant, economic performance and future plans
and objectives of MCW. The new extraction plant in discussion here is anticipated to produce 500 bbl/day.
Any number of important factors could cause actual results to differ materially from these forward-looking
statements, as well as future results.
Although MCW believes that the expectations reflected in these forward-looking statements are reasonable,
they can give no assurances that the expectations of any forward-looking statements will prove to be
correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or
revise any forward-looking statements to reflect actual results, whether as a result of new information, future
events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
This document does not constitute and the subject matter hereof is not an offer for sale or a solicitation of an
offer to buy, in the United States, or to any “U.S. Person” (as such term is defined in Regulation S under the
U.S. Securities Act of 1933 (as amended (the 1933 Act”) or any equity or other securities of MCW. The
securities of MCW have not been registered under the 1933 Act, and may not be offered or sold in the
United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from
the registration requirements of the 1933 Act. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this document.