Elimination of Gas Flaring at Bakken Shale by On-Site Cryogenic Liquefaction Units from N. Dakota’s Bakken Oil Fields

Price: $49,999,967

Location: Bakken Shale, North Dakota

Industry: Oil and Gas Exploration

Listing ID: Bakken.Flaring.Elinimation

 

PROJECT OVERVIEW: Elimination of the Need for Gas Flaring from N. Dakota’s Bakken Field via on-Site Conversion to Byproducts.
Benefit to Oil Producers: Accelerate by more than 50% Oil Prod.
Est. Market Value of Extracted Byproducts is over $10 Billion/year for about 20% of Bakken’s producing wells (see Exhibit A of the attached Business Flyer).

SALIENT FACTS About Adverse Impact of the Gas Flaring Need in the Bakken Field:
There are about 15,000 oil wells and they are producing only 25% to 30% of the production capacity due to lack of adequate removal of gas. Currently mobile on-site units are able to remove up to 30% of liquid by-products.
The producers have to flare the gas so that they can produce the oil.
The EPA has limitations on how much they can flare and this limits their production capability to about 25% to 30% of a well’s capacity.

FLARE ELIMINATION by on-site Processing of Natural Gas via Liquefaction Technology :
Several major oil exploration Companies drilling the Bakken field currently have Master Service Agreements with CryoLNG’s (Client’s code name) affiliate. These Companies are willing to use CryoLNG’s technology for eliminating all the significant flaring by converting them to byproducts (about 90% of the flared natural gas).
CryoLNG’s service will free these Companies to reach the full production capability of their Bakken oil wells via an increase of over 50%.
A major Oil/Gas Exploration company verbally expressed interest in allowing CryoLNG to put its equipment in several wells when available.

Economic Benefit to our Client Company and its Partners:
Our client company by processing the gas that was destined to be flared will be able to produce with its cryogenic plant the several products that are in demand in the market place. Bakken’s Natural Gas includes approximately: methane (59%), ethane (18%), propane (9%), butane (3%), and a few other (i.e. about 90% of the natural gas being flared).
REVENUE POTENTIAL: One of the two planned Mobile Cryogenic Unit with 50,000 gallon/day capacity has the ability to generate annual revenue of about $ 36 million per exploration pad. The EBITDA from this will be estimated in due due time. However given (a) the negotiated gas cost for the production process, and (b) how low labor intensity (about 3 people are needed) of the cryogenic conversion manufacturing process is, the profitability is expected to be very high.

NEEDED $50 MIL. FUNDING FOR TWO (2) MOBILE CRYOGENIC PLANTS
It is worth noting that requests for more units are anticipated soon thereafter due to the producers’ great demand for reducing flaring.

The client is prepared to entertain attractive terms for the lender plus reward them with some residual interest related to units’ production. This is a well established technology with low risks of implementation.

  • NOTES:
  • INTERESTED PARTIES NEED TO SUBMIT CONFIDENTIALITY AGREEMENT & FUNDING CAPABILITY PROOF.
  • DISCLAIMER: Enterprise Development Resources, Inc.(EDR) makes no warranty or representation in connection with the information provided herein. Interested parties are required to conduct their own due diligence.
  • For More Information please contact: Elias E. Ladon, Certified Business Broker & Appraiser, Enterprise Development Resources, Inc. (not a Broker/Dealer.)
  • Any Securities Transactions will be conducted via a Registered Broker/Dealer.
  • Business Broker’s Address: 3659 Green Road, Suite 100, Cleveland, OH 44122; elias.ladon@EnterpriseDR.com;
  • 216-295-1136 (m); 216-803-0107 (f); 216-765-0845 (O)

Listing Details

Terms and Conditions?:

To be negotiated.

Reason For Sale:

Company needs funding for the implementation of this project.

Training & Support:

Client has a team of experts who are capable of leading the implementation and the training.

Location

Facilities Information:

Please see 2nd page of the attached business flyer.

Summary

Historical Summary:

The company behind this project has collectively more than 200 years of Oil & Gas Exploration, transportation and implementation of cryogenic technology.

Owner Qualifications:

The principals of the company behind this project has collectively over 200 year of Oil & Gas Exploration, transportation and implementation of cryogenic technology.

Competition:

Currently the competition is using much less efficient approaches of cryogenic removal of the liquid products that are destined for flaring. Thus a significant portion of natural gas needs to be flared.

Financing/Terms:

To be negotiated.

Applicable securities transactions are conducted through a registered Broker-Dealer.
Background of licensed investment professionals can be found on FNRA’s Broker Check.