Eprs Energy

2.1 Statement of Purpose

EPRS Energy Inc was established as a technology driven company. Its first commercially ready technology is in the energy business. The technology it has licensed has been demonstrated in field applications to increase down hole pressure in oil wells. It was tested over a six-year basis in approximately 50 oil wells and increased down hole pressure in all of them. During that time over $3,000,000 was spent in the preparation and field testing trials. It is a proprietary process which gives us the technological edge in acquisition and operation of marginal oil well leases. The field applications and joint ventures that we plan on entering into will optimize the longitudinal procedures needed to maximize the increase in production on marginal oil wells across the country. There are over 70,000 marginal oil wells in Oklahoma alone and over 400,000 marginal oil wells in the USA.

We analyze the oil and water (if present) in an oil well and/or field, and then determine, prior to any other field work, the extent that our process will affect the oils characteristics and bottom hole pressure. An increase in bottom hole pressure normally increases oil production. After the laboratory testing of the oil and water samples and field characteristics analysis, tests will be run in laboratory experiments to determine the best way to increase the down hole pressure in the well(s). If we believe the process can affect a satisfactory change then the wells will be treated according to procedures developed in the lab.

We would expect to see a change within 14-28 days in the pressurization of the well area with a corresponding future increase in oil production. It has proven that it is economically superior to other secondary and/or tertiary recovery techniques.


2.2 The Company

The Corporate Officers are composed of a core group of people experienced in financial management, business development, oil and gas operations, management, marketing and intellectual property management.

2.3 Business Concept

EPRS Energy Co. Inc has licensed proprietary technology to enhance recovery of oil from marginally producing and/or mature oil wells. Currently 1/3 to 2/3rds of known.

oil reserves are lying unrecovered from the known deposits. Many times, wells are shut down with over 50% of the known oil still in the ground. This technology is designed to recover a significant amount of oil currently inaccessible and/or uneconomically producible by other technologies.

Marginal oil is produced from low-volume “stripper” wells – defined by the Interstate Oil and Gas Compact Commission as producing less than 10 barrels of oil per day. There are over 400,000 wells in the USA producing at these rates. Oklahoma wells produce an average of 2.5 barrels of oil per day. Marginal or “stripper” wells produce 29% of the

U.S. domestic oil and 68% of the production in Oklahoma.

EPRS Energy Inc will initially concentrate in the enhanced oil recovery business and work to exploit the technology. This technology has been able to increase the down hole pressure in oil wells resulting in increased production. We believe that if the reason for the oil wells reduced production is because of loss of down hole pressure, we will be able to increase the down hole pressure and thus increase the production.

Each well/field requires a different “cocktail” of chemicals depending on the down hole conditions of the well. In each case there needs to be an analysis of the oil and produced or injected water, if any, and analyze the oil field data and past practices to determine the best approach to increasing the fields production. It is necessary to perform a chemical analysis of each oil and water sample to determine how to treat a particular fields production.

The process and chemicals for modification are currently proprietary and the subject of future patent evaluation. Certain specific information cannot be disclosed at this time. However, this discussion is intended to give the reader a better understanding of the nature of the process and its applications.

The basic process involves utilizing a family of more than 12 basic chemicals or chemical systems. Each of these chemical families has a large number of variations. The families and variations within each family react differently with different hydrocarbon components. The formulation includes dispersing agents and surface active agents.

The company plans on forming strategic alliances with producers and to initially purchase and or joint venture with small oil field operators until we have funding and/or opportunities to acquire properties for our own account. Acquiring properties, reworking and increasing their economic viability will allow us to have a significantly increasing asset base. Occasionally we may find that some of these properties, after we have reworked them, are attractive acquisition targets for other operators and we will review each opportunity to sell them when we can realize significant returns.

The business plan calls for the field applications to begin within three months of funding. We have estimated that in the first year we would need approximately $3,000,000 to accomplish all of statement objectives. The type of revenue for the company will include joint ventures, investors, service income, and/or production income, depending on the type of ventures we entertain. If our fund raising objectives are successful, we will start purchasing oil fields where we believe we can use the technology. By utilizing our technology we should be able to reduce the payback time on any property we purchase. We also believe that there are a number of foreign fields that may be candidates for our technology. After receiving funding, we will pursue those leads if they prove profitable.

One of our biggest advantages is that we are NOT going out to look for oil; we are going into known producing wells/fields and improving the production. The risk is very minimal. Another advantage is that we would be buying production based on its current production, but knowing that with our technology, we can increase the cash flow in an economic manner. This almost negates any downside risk to the investment. Any bonds would be competitive with other bonds offered as a source of income. Company

breakeven is planned for the second year. Peak negative cash flow occurs during the first year but its amount depends on the length of time it takes to enter into joint venture and/or acquisition agreements with appropriate venture partners. Operations thereafter, assuming successful development, show rapid growth and increasing profits which will enhance our ability to buy more properties.

After the first year’s operation we will be able to satisfy potential lenders and/or investors of the economics of using this technology. Oil wells all over the world are decreasing in production, usually due to loss of gas pressure. We can help which will give us the opportunity to be very profitable.

We currently are exploring partnerships with other companies that have chemical processes that are complimentary to ours and that can affect different aspects of the oil field and producing wells. Many smaller oil companies do not have access to chemical laboratories to test and monitor their production. This presents another opportunity for us to generate cash flow.

EPRS Energy Inc. is actively pursuing its goal of becoming public within 24 months. We believe that if we become public, we can acquire other technologies through wholly owned subsidiaries that will allow us to benefit our company and its shareholders.

Most of the mature oil production in the world are also decreasing each year and we believe we can profit by helping them increase production in those oil wells and decrease their rate of decline.

2.4 Management

The following management team has been assembled. Each Director brings certain talent and expertise to the Company and is actively involved in providing that expertise in the on-going operations of the Company.

FOUNDER, CHAIRMAN OF THE BOARD & CEO - Charles T. Whittier

Charles T. Whittier is the founder and has been our Chief Executive Officer since start up. He has an MBA in International Business and Managerial Economics from Temple University in Philadelphia. Mr. Whittier has over 40 years in evaluating technology, business management, project management, oil and gas economics and production, and economic development project evaluation and implementation. He has worked for a Fortune 50 company both domestically and internationally.

DIRECTOR, V.P AND MANAGER OF MEDIA – Megan R. Peacock

Ms. Peacock graduated from the University of Oklahoma with a business major. She has worked in the area of customer relations and media.

DIRECTOR, CHIEF FINANCIAL OFFICER – Russell Schwab

Russel Schwab has an MBA and 40 years of auditing and accounting background involving Federal. State and Local rules and regulations. This will help us when we entertain going public.

FINANCIAL CONSULTANT,  Larry Johnson, PhD

Dr. Larry Johnson is a Chemistry Professor at Oklahoma State University and will work with us on our applications of this technology. He has extensive experience in the approaches we plan on pursuing with this technology.

2.5 Marketing Strategy

Our strategy is to initially enter into contracts to run and/or acquire small marginal oil fields to treat. All the testing, formula preparation, and any research and development will be done at its laboratory in the Norman, Oklahoma area. As the company expands to other states it will enter into joint ventures to establish regional treatment facilities to prepare and mix the “cocktail” prior to sending it to a location for injection into the well(s). We will maintain the control over the formulas and how they work. We will require agreements with employees to protect our technologies.

We will enter into contracts with oil field personnel to assists us with the treatment and application of this technology. We will continue to have discussions with large holders of mineral interests and production about joint ventures regarding their properties. We plan on entering into joint ventures either directly or under production sharing agreements with leasehold owners.

The start-up capital will be used to provide working capital to begin the company’s operations by funding the laboratory and support staff to analyze the samples and prepare formulas for application to properties that we can treat. We will also have a mobile treatment capability.

We are presenting a three-part program that investors can invest in one part, two or three. Each part represents one-third of the $3,000,000. Each “investor” can be a person or other legal entity. If we start with less than three million, we may, at our discretion, invest in percentages of various oil properties.

Part of the funds ($2,500,000), will be used by the company to establish a Wyoming LLC with the investor having a 35% revenue distribution share in the LLC. The proposed name is EPRS Property LLC. The investor will initially have a 60% net revenue distribution allocated to them until their $3.000,000 has been returned and then shall receive 35% net revenue reflecting their partnership interest. The partnership will be involved in acquisition and/or joint venture in producing properties and properties that need rework. C. T. Whittier shall be the partnership Manager and shall be responsible for carrying out its’ business. The partnership, starting in the third year and yearly thereafter, shall have an outside valuation, and after the valuation the partnership may determine to sell its’ assets and disband.

Start-up/expansion Expenses (Laboratory & Field Equip) $350,000

Property JV, Acquisitions, Reworking 2,500,000

Legal & Accounting 150,000

Total use of proceeds $3,000,000

While the company has budgeted planned start-up costs, circumstances, and events unforeseen may cause actual expenditures to vary or increase significantly.

The Company anticipates that the funds used to acquire oil producing properties will generate approximately a twenty percent return before we commence remedial work and the use of our enhanced oil recovery process. We would anticipate over 30% return per year after full treatment.

We also are considering exchanging the investor 35% ongoing net revenue interest in EPRS Property LLC for 4.9% in the outstanding common shares of a public company we acquire.

Some of the activities discussed herein may be performed concurrently and others may be underway by the time this program is funded.