K & W Haynesville Oil Field Rentals and Services
Posted by: DoEnergy on Apr 24, 2010
| Funding: Over 1 million |
Category: Construction & Real Estate |
Location: Texas, United States |
Viewed: 940 |
Oil Field Rentals & Services
THE INVESTMENT
The Company is seeking $3,600,000.00 in debt financing for a period of five years. We are offering a preferred rate of return of (10%) per year with final interest and initial investment returned at the end of the five year term.
USE OF FUNDS
The investment capital will be used for operating capital and to purchase additional equipment to expand our current Haynesville operations as presented below.
EXECUTIVE SUMMARY
Oil Field Rentals & Services is in the business providing rental tools and services needed to drill wells, re-enter wells, complete wells and for producing oil and/or gas wells. The company has representatives in Houston, San Antonio with a field office conveniently located in Gary, Texas for easy access to service the 125 +/- rigs currently developing the Haynesville Shale and deeper formation. The principals and employees of the company have extensive oil and gas experience and direct working relationships with operators in the area.
The Haynesville, our primary target area, has been identified as a massive formation with significant activity developing the reserves. The Haynesville Formation is attractive to a service company due to the fact that each rig must utilize services a minimum of 2 times for the drilling of each well. The rig starts drilling the well with water base mud which must be cleaned prior to starting the lateral portion which requires oil base mud then the rig and mud system must be cleaned prior to moving the rig to the next location. The Shale plays have sharp declines which necessities the continuous drilling of wells for stock companies to maintain their value. The shale plays also need the infrastructure (pipelines) to get their product to market. We provide most, and soon all of the necessary services to support the activity.
(Taken From the Oil & Gas Journal)
EnCana Corp. has a $580 million program to drill 50 Haynesville shale gas wells in East Texas and North Louisiana in 2009.
Chesapeake believes the Haynesville Shale play could potentially have a larger impact on the company than any other play in which it has participated to date. The company currently owns or has commitments for more than 200,000 net acres of leasehold in the Haynesville Shale and has a leasehold acquisition effort underway with the goal of owning up to 500,000 net acres in the play.
(From CHANNEL 3 NEWS SHREVEPORT, LA.)
The Haynesville Shale has been a huge boom to Northwest Louisiana's economy. That's especially true in Desoto Parish. Now, Exco, is calling 85,000 acres home to a big expansion. Along with a new ten thousand square foot field office and state of the art gas gathering and treating facility officials with Exco say the total pumped into Desoto Parish could be more than ten billion dollars.
Links to information on 2010 development for the Haynesville
http://stocks.investopedia.com/stock-analysis/2010/Skys-The-Limit-In-The-Haynesville-Shale-GDP-GMXR-UNT-ECA-PXP0112.aspx
http://shale.typepad.com/haynesvilleshale/
http://www.widgetbox.com/network/finance/post/petrohawk-energy-to-expand-development-of-haynesville-shale-/3330934
Rental equipment basically falls into two categories:
a.) Equipment which is rented to a rig which has the potential to stay with the rig for the life of the rig or as long as it is in the service area.
b.) Service equipment which is needed on a rig for a period of time and is used on a regular basis to service multiple rigs.
An example of services and Equipment needed by a drilling rig is as follows: (a), Roads, Bridges, Painting of all Equipment, Diaphragm Pump, Trash Trailer, Mud Pan, Pit Pump, Screens, Oil Base Mud Containment Pans, Mud Pit Covers, Mud Vacuum & Removal Services, Light Towers, Generators, Mud Shaker, Air Operated Mud Buckets, (b) Ditching work to bury lines, Rig Steam Cleaner, Casing Cleaning, Cleaning & prep of Drill Pipe, Screen Cleaner, Pipe & Casing inspection, Measuring & Drifting Pipe, Setting Tanks, hooking up wells & laying pipeline.
Existing Equipment Inventory:
We are adding additional Equipment, a current list of equipment will be provided
Immediate Objectives:
Our immediate financial objectives are based on realistic expectations of servicing 25 rigs which represent approximately 20% of potential business, with the objective of obtaining between 25% and 30% of the business in the area.
Long term growth:
With the addition of the new rigs moving into the area and the financial commitment made by several of the major players in the area we feel there is significant potential for long term growth in this area. Additional growth may be obtained by increase products and services to service our existing client base.
We feel the greatest opportunity for growth is opening additional field offices to service operators as the Haynesville Shale discovery is expanded across Texas. In addition we have the opportunity to open additional field offices to service Rigs in the emerging Eagleford Shale Formation, Barnett Shale Formation and others as the discoveries are proven. We are projecting the possibility of having five to seven field offices offering similar services.
Service Company Client List:
Our client list consists of but is not limited to:
• EnCana Oil & Gas (USA) Inc.
• Anadarko Petroleum Corporation (Domestic)
• Cabot Oil & Gas Corporation (Gulf Coast Region)
• Penn Virginia Oil & Gas
• ONCORE
• Chesapeake Energy Corp
• Forest Oil Corp
• EOG Resources
• We have a total of 14 Master Service Agreements in place
Opportunity / Down Side Risk
The risks associated with providing rental tools and the necessary services for oil and gas exploration, re-entering old wells, drilling new wells and servicing producing wells are substantially less than those associated with the exploration or development efforts. This is due to the fact that the service company is paid regardless of the success or failure of the exploration, development or production effort. We carefully screen our customers to be certain of their credit worthiness, should we provide services to a company who is not well known or does not meet our credit standards we require cash in advance of providing goods and or services. We are unaware of any business that is free of risk; therefore, anyone investing should consider any business investment as a risk investment.
Comparative Analysis
Some high-level comparisons can be made between this investment and other popular investments, such as Securities and Real Estate. While oil is certainly not a new investment vehicle it has come to the forefront as an alternative to today’s rapidly declining real estate market. There is no telling exactly when real estate will rebound and if it will rebound sufficiently to provide acceptable year over year returns. With securities being affected indirectly by the real estate and the mortgage crisis, the markets have seen increased volatility. Current economic conditions as well as trends and forecasts of oil prices make this investment a well timed vehicle for potentially returns on capital in today’s market.
We encourage any interested party to visit and to meet with management and go to the field to see the operations in order to further explore this opportunity and gain a better understanding of what we can do to ensure this is a sound investment.
Exit Strategy:
Based on historical data we are projecting another oil and gas boom within the next five to seven years.
We anticipate growing the company over a 10 to 12 year period
Investors are in the position to generate a preferential rate of return of 12% per year for five years with the potential to re-invest for an additional time period.
Upon building the company we would be in the position to:
Take the company public
Sell to an independent company
Sell to a public company for cash and stock
Management Summary
We have assembled a capable, experienced management team. The field crew includes oil and gas professionals who have spent much of their careers in the oil industry, and who are intimately familiar both with the industry in general and the Haynesville oil fields in particular.
Managing Professionals:
Ken Hopkins
Mr. Hopkins grew up in the family Drilling Business in South Texas. Upon receiving his Engineering and Business Degrees he became an intricate part of the company. The Family Company specialized in providing services and rental equipment including the turnkey drilling of shallow to medium depth wells and providing services for deep high pressure drilling, workovers and completions. Mr. Hopkins sold the company in 1979 to Pride Petroleum Service (now Pride International, Inc.) During his served on the Board of Directors and as a Vice-President of Operations Pride grew from a Fifty Rig Operation to Four Hundred & Fifty Rigs with offshore & international operations. Mr. Hopkins has 42 years of experience in all phases of the Oil & Gas Industry from the “C” level to field operations. He has drilled or supervised the successful Drilling and Completion of over a Million feet of hole.
Stephen Kenne
Mr. Kenne began his career as a petroleum engineer for Getty Oil & Gas Inc. Prior to Texaco acquiring Getty Mr. Kenne had taken on the responsibilities of Gulf Coast Engineering and Operations. Kenne Exploration Inc. was founded in 1988 and has earned the respect of industry for his engineering expertise and his diligence in operations. Kenne is currently serving as the Chief Operations Officer for Domestic Energy Development, Inc. and holds similar C level positions in other oil and gas companies.
Robert S. (Steve) Williamson
Mr. Williamson received his honorable discharge from the U.S. Navy in 1974 and began oil and gas career with Petty - Ray Geophysical acquiring and analyzing 2-D geophysical data and later with Exxon Company U.S.A. During the late 80's and early 90's he was a Principal of a major oil and gas acquisition and divestiture company. He has been a registered operator in the state of Texas for over 16 years and has operated, drilled or caused the drilling of wells in Texas, Louisiana, Kentucky, Tennessee and Oklahoma. Williamson is currently serving as the president of Domestic Energy Development, Inc. and holds similar C level positions in other oil and gas companies.
Anthony Stallone
Mr. Stallone served 10 years in the U.S. Air Force; upon leaving Anthony started and built an oil and gas field service company. Through his strong work ethics he has earned the respect of the industry professionals in the area who want to see him succeed. He has joined us as an equity share holder and will be serving as the Vice President of the service company.
Jamie Andrews
Mr. Andrews has been in the pipeline business for several years, his latest position was the general managing a pipeline company in the area. He is joining our team as a equity owner and Vice President of the pipeline sector. With his years of experience and contacts with the area operators in the immediate area Mr. Andrews will be a valuable asset. In addition to his duties as V.P he will be supervising the installation of the pipeline.
COMPANY COMPETITIVE ADVANTAGES
Our management team will leverage their established network of contacts within the oil and gas industry, as well as their connections and experience within the oil and gas community to provide the company with unique access to deal flow. The Manager, Key Personnel and Advisory Board Members have participated in the evaluation, marketing, and financing of numerous successful projects over the last several years and have cultivated relationships with both those working in the aforementioned arenas.
Our Management team has many years of combined experience in oil and gas projects, deal structuring, and negotiations. In addition, the team recognizes the value of using experts and professionals to properly evaluate opportunities and deal structure. Through the use of all of these resources the Company Manager, Key Personnel and Advisory Board will thoroughly evaluate each opportunity presented to the Company, seek the projects with the most favorable balance of risk and return, and negotiate terms and structure with the highest probability of success.
The company management will leverage their established network of contacts within the oil and gas industry to provide access to business in the field and additional potential acquisitions.
Contact:
Steve Williamson
281 496 1868 office
281 796 0486 cell
doenergy@gmail.com


- mr
- CONSULTANT
- Worlds Higest Altitude Stadium.
Add A Commentnazif - April 28, 2010, 10:54 pm
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Gordon Williams - July 5, 2010, 11:40 am
ATT: Interested Partner,
We are Gordon Consulting Limited and are situated in the United Kingdom. We specialize in searching for potential investments for our high net-worth clients worldwide.
Our visualization is based upon securing and safe guarding our client’s interests in order to achieve the maximum return on their investments.
We have recently received a request from one of our client based in the UK. They are currently looking for a profitable project to invest funds into that will generate a substantial profit.
We have examined your company’s profile on the investinmyplan.com and consider you to fit our criteria provisionally. We need your executive summary to process your funding.
Should this be of interest to you, please do not hesitate to e-mail us back at gordonwlliams@movmail.com for further information.
We take this opportunity to thank you for taking the time to read the contents of this email.
Kind regards,
Gordon Williams,
CONSULTANT
Bhaba Nahta Bhatta - July 6, 2010, 11:34 am
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Contact no:977-9841322841
E-mail address:eitcbhatta@hotmail.com
EITC Group.
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