Global Oil & Gas Recovery Corp.

My name is Richard Cindric, CEO of Global Oil & Gas Recovery Corp. ("GOGC" or the "Company") a USA privately owned Company with operations in the Enhanced Oil Recovery (EOR) industry seeking funding. I got your contact information from Askforfunding.com. We hold rights to the Mobile Refining Unit (MRU) technology, which converts wasted flared methane gas into a usable fuel. 

 

The Company's primary focus is to implement Enhanced Oil Recovery (EOR) techniques to existing abandoned wells, maturing oil fields and previously tapped reserves located in the United States and Canada. By restoring these existing oil and gas wells we create value for our shareholders by generating revenue from oil and gas production. Our Green Technology. The company is funding the further development of a Methane/ Mobile Refining Unit (MRU), which is a new green technology that captures flaring, venting and leaking Methane gas and converts it into usable fuel. 

 

This technology addresses the leaking abandoned wells (Zombie Wells) issue currently a major problem around the world. This technology is currently in development and could be ready for production in 2024.

 

Oil and gas companies flaring and venting burns more than just natural gas, they end up burning billions of dollars in wasted energy. They set fire to billions of cubic feet of natural gas through flaring and venting each year. Flaring, venting and leaking abandoned gas wells not only waste natural resources but pollute the atmosphere with hazardous methane gases.

 

Oil and gas companies flare more than $10.6 billion in natural resources every year. The MRU technology addresses the flaring, venting and leaking abandoned wells by capturing the wasted methane gas and converts it into usable fuel. To learn more about the MRU technology visit: https://globaloilandgasrecovery.com/green-technology

 

Flaring, Venting & Leaking Methane Market Demand

 

The World Climate Action Summit -COP28 UAE gathered December 2023 heads of state and government officials and industry leaders to discuss climate solutions, where they announced a landmark Global Decarbonisation Accelerator Program, to fast-track a new, global energy technology. Methane emissions are among the top causes of global warming. Fossil fuel operations generate over one-third of all methane emissions from human activity.

 

FOR UNITED STATES (USA) PERSONS ONLY:

 

We are offering 300 Units of our securities at $5,000 Per Unit (the “Units or 20,000 Shares”), of Global Oil and Gas Recovery, a Delaware USA corporation (the “Company,” and such offering (the “Offering”). 

 

The Units are being offered in reliance on the safe harbor exemption provided by Rule 506(c) of Regulation D (“Rule 506(c)”) of the Securities Act of 1933, as amended (and the rules and regulations promulgated thereunder) (the “Act”). In connection with the Offering, the Company will provide you with the following documents:

 

1. Corporate Deck

2. Confidential Private Placement Memorandum
3. Subscription Agreement – Exhibit A
4. Confirmation of Accredited Investor Status – Exhibit B

 

Read the Offering Memorandum and Corporatre Deck and ask any questions of the Company concerning the terms and conditions of the Offering and seek to obtain any additional information that is necessary for you to evaluate the merits and risks of an investment in the Company.

 

I am available to discuss further at your earliest convenience.

The Methane/ Mobile Refining Unit (MRU) Overview 

In pre-industrial times methane concentrations were 720 ppb and now they are 3 times higher and the net accumulation in the atmosphere is 20 Mt. Whereas, carbon dioxide dwarfs methane concentrations and is responsible for most of the  radiative heat trapping, methane has a 25 times higher warming potential.  So, reducing methane emission is an opportunity to approach the objectives of the Intergovernmental Panel on Climate Change. 

Technology to convert methane (and coal) to fuel was first developed by Fischer and Tropsch in the 1920s.  Germany used this technology in World War II as they had no petroleum.  In the 1950s, South Africa further developed the technology to circumvent the oil embargo. The first step to produce fuels is to make syngas – a mixture of carbon monoxide and hydrogen.  In the second step, (Fischer-Tropsch synthesis), the CO and H2 react to long chain hydrocarbons, waxes, and light gas.

The Market

The market is enormous: the natural gas flared and vented is equivalent to the energy needs of France and Germany.  The market segments include oil and gas (9000 units in NA and 140000 units worldwide), landfill gas, bio gas, shale gas, large scale to produce diluents to transport heavy oil to the US market (potential of 800 000 bbl d-1).  In Canada, the Alberta Energy Regulator is shutting in wells that can’t meet the emission objectives.  Oil producers in the Dakotas are allowed to flare as long at there is no economic alternative.  This technology provides this economic alternative with an expected payback in 12 to 18 months.  So, this would trigger a huge demand for the units as companies would be obliged to buy it.

In Ecuador, indigenous girls took oil companies to court to insist they shut in their oil wells.  They proved in court that the emissions from flares are the direct cause of higher rates of disease.  Again, proposing technology that eliminates toxic chemicals from flares and produces a “greener” diesel will motivate the government to enforce the court order to shut in the oil wells unless they reduce emissions. 

The USA is flares as much as Venezuela so is ranked 4th in the world.  Canada has been shutting-in wells that produce too much gas and the natural gas fields are lying dormant as gas processors had been pulling out. They have an immediate need for 500 units to tie into existing battery units.  However, emissions from landfill gas and bio-gas are now higher than the oil sector.  Another market is for oil rigs that can only flare 72 h during well completion, which is insufficient to adequately assess oil/gas-in-place.  Finally, Alberta imports 500 000 bbl/d of condensate to dilute with oils ands to ship to Texas.  This technology could produce condensate and increase Canada’s capacity to export 1 million bbl/d.  It would have to be scaled up, but this application could generate $100 million/d revenue.

Our Solution

The problem with gas-to-liquid technology is CAPEX and OPEX. Small scale units are uneconomic, especially if you only build one.  However, if you build hundreds, costs can come down exponentially – Learning/Experience. Gregory has published a couple of articles on scale-up and experience curves and one of his articles is in an encyclopaedia.  60 % of the cost is in the first step---methane reforming to syngas.  

The proposed technology applies a catalytic partial oxidation (CPOX) step in a milli-second reactor.  This compact reactor costs a fraction of steam methane reforming (SMR) because it is exothermic rather than endothermic and so heat management is much simpler.  Furthermore, the reactor operates at the same pressure as the second step, which means that there is no intermediate compressor, which is also very expensive (50 to 100 % of the rest of the process – reference from David Beckman from Zeton and Bill Green from MIT). 

The patent application we filed address both CAPEX and OPEX.  Operators cost as much as $2 million per year for specialty chemical plants.  Their cost doesn’t scale-down very well.  Whether or not you operate a 10 kt/y or 200 kt/y plant, the number of operators are about the same.  Our patent integrates the micro-refinery unit (MRU) with existing oil facilities that already have trained personnel.  So, the first step in addressing cost is to train operators that are already there.  (Gregory worked for Baker Oil Treating in Swan Hills Alberta and so is familiar with the oil battery operations). Second, integrating the MRU with existing facilities means that there are fewer unit operations to invest in: flare, oil storage, water treatment, 3-phase separator, electricity, heat exchange medium.  All these facilities already exist and so this could reduce the cost of an MRU by a factor of 2.  The third element is reducing CAPEX by building mass manufacturing capability.  We estimate that a unit could cost less than $300 000.  Sales are on the order of $300 000 to $500 000 so the target would be to pay of the unit within a year.





How We Make Money

The price of crude oil has been hovering around $90/bbl (WTI).The diesel fraction produced through the Fischer-Tropsch process has a higher API gravity, which commands a higher price (10 % to 20 %) than low API gravity crude. Assuming a price of $100/bbl and the unit operates 330 $ per year, the net sales from a unit is $330 000.  The target manufacturing cost will be less than $300 000 and we anticipate selling the unit at more than $500 000 so profit from each unit will be $200 000.  We anticipate building facilities to produce one unit per day, so revenues would be $150 million per year and the profit would be $60 million per year. 

Rather than selling units, some junior oil companies have offered to share the production if we were to able to produce oil from wells that were shut-in.  Assuming that the unit can bring a marginal well back online and they produce 5 bbl/d oil and 100 MCF (thousand cubic feet per day) of natural gas, the total revenues would be close to $500 000 per year.  The orphan inventory Alberta stood at 8000 wells several years ago.  If we assume that 1000 have this minimal capacity, the total revenues would be $50 million/y. 

In Canada, oil rigs are allowed to flare gas for 72 h during well completion to evaluate the oil/gas in-place.  Sometimes this is not enough time.  Since the MRU is mobile, we can bring the unit to the well head and convert the natural gas to diesel, which give reservoir engineers more data to estimate the productivity.  There are about 750 oil rigs operating in Alberta.  Assuming 200 rigs rent the well for 100 days per year, the total revenues at $3000/day, would be $30 million/year

Milestones

The micro-refinery concept at the 2nd annual Gas to Liquids North America conference (SMI) in Houston in 2015.  The concept of producing liquid fuels at 10 bbl/d was characterized by one of the consultants at the conference as the “Holy Grail”.  Since that time, the team has interacted with industry at multiple levels. 

2022 Topanga Resources offers to test MRU on site in Peace River

2022 MRU mechanically complete

2020 Gregory presents the project to the Government of Alberta Energy Caucus

2019 S. Jaffer (VP Corporate Science and Technology Projects, Total), suggests offshore wells

2017 NSERC awards Gregory a Tier 1 Canada Research Chair (CRC) to develop a pilot plant: CFI grant =$600 000, CRC=$200 000/year over 7 years 

2016 Gregory organized the Canadian Gas Flare Reduction Initiative: industry, academia, gov’t

2016 Theo Fleisch (World Bank Global Gas Flare Reduction initiative) endorses GTL technology at the NSERC Connect conference in Calgary, AB 

2016 Canadian Journal of Chemical Engineering publishes the article "Micro-syngas technology options for GtL". Co-authors include Jan Lerou, Bill Green (MIT), Ceramatec.

2015 Clariant supplied CPOX catalyst for the first step

Forecast

Investment: The pilot plant is ready to go into the field after some testing outside of the university with gas cylinders.  An injection of $1 million will accelerate this process and by the end of 2023, the final design of the reactor and system should be complete. The total invested in the process exceeds $2 million after 10 years. While we are testing the unit in Alberta, we will engage Genfabco to begin building an additional 10 units. Over then next 2 years, we will install the units in trailers and then start mass manufacturing of the units.  One target will to be hit the first 100 units but we estimate that we could fulfill the market demand with 300 units per year (in the next 5 years). This will require approximately $10 000.  The next injection of cash will finance recovering abandoned oil wells and bringing them back on stream.

Besides the investment in equipment, the immediate goal will be to hire two more engineers and technicians to test the units in Alberta and working on the logistics of building multiple units. Of the $1 million most of that will be dedicated to personnel, travel, and site development in Alberta.

Spending Plan

The first step is to demonstrate the technology in Alberta at an oil battery unit.  We have already identified a site in Peace River but before we do that, we have to perform tests in the individual units: the mechanical integrity of the plant we have already established (it has been operating for over a week at 400 °C in the first step and 100 °C in the second and the air compressor has been operating without difficult for this time as well).  The detailed plan, in the figure below, calls for 6-8 months of testing in Montreal and then shipping it to Alberta.  Installing the unit on the battery site and testing will take about 5 to 6 months.  During this time, we will be identifying improvements and then contracting out the manufacturing of the reactor vessels to Genfabco (in Ontario who have already built our first Fischer-Tropsch reactor). While that is underway, we will identify a site to begin assembling the balance of the plant.  This initial target is to get 10 built in the first year.  We will begin collaborating with oil companies to locate the sites and train operators. 

(2) Certification from the RBQ ($20 000 - 2 months) 

(3) Synthesize 200 kg of catalyst ($40 000 - 2 months)

(3) Test individual components of the reactor with controlled gas bottles ($100 000, 8 months)

    (a) purchase a methane compressor and install the unit ($60 000 - 4 months)

    (b) ship unit out to Peace River, AB install unit at battery unit ($100 000 - 3 months)

    (c) conduct extensive tests varying conditions to identify the optimal ($200 000- 6 months)

(4) Modify the reactor design to minimize costs (particularly for the first step - $50 000- 6 months)

(5) Engage Genfabco on constructing 10 reactor units ($600 000 - 6 months)

(6) Purchase all ancillary equipment to build 10 units ($6 000 000 - 1 year)

(7) Hire electricians, technicians to instrument the reactors ($1 000 000 - 1 year)

(8) Install the 10 units at existing oil battery facilities, train individuals ($500 000 - 1 year)