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Business Development and Operations

OVERALL STRATEGY
OVERALL GOALS

Pre-IPO

5 projects (total of 300 bbl./day)

• The company is looking to have a total of 5 decent oil projects that produce between 50 and 100 bbl./day each.
• The goal is to produce a total of 300 bbl./day. This is one of the main milestones of the company.
• 300 bbl./day equals $5.4 million net income per year, which will lead to an approximate market capitalization of $100 million for the company.
• $100 million market capitalization is the completion of phase 1 and is the first goal as a valuation and the exit strategy for initial investors.

3 smaller projects

• Not all projects turn out to be great. That’s why we believe that we will end up with 3 smaller projects in the end as well.
• Other oil companies abandoned some projects in the past due to low oil prices. Even though the projects were producing oil, about 80% of the oil has already been retrieved. The remaining 20% can still be produced and with today’s oil prices, a positive cash flow can be achieved.
• The advantage of having a smaller project is that it is not as expensive to get back into production. A project might cost about $100,000 to acquire, $50,000 to get it back into production and it might produce 10 to 20 barrels per day for the next 10 years.

1 Mega project with the potential for 20 wells

• The goal is to find a large project with a big formation under ground that has the potential to have 20 wells producing 50 to 100 bbl./day each.
• The 20 wells will be next to each other in chessboard like setup.
• The initial investment to find such a large project might around $5 million.
• It is not possible financially and logistically to start with 20 wells right from the start.
• Initially, we are looking for financing of $10 million for phase 2 after the company is public.
• Initially, we would start with 2 wells and then each 6-month period add 2 to 4 additional wells until we have 20 wells in total over the course of 5 years.
• In order to finance each well, no further outside investments are needed to complete the goal of 20 wells. The start-up cost for each well will be financed with the earnings of the production and sale of the oil.
• Once the company has been able to produce 300 bbl./day and have between 5 to 8 projects, it has proven that it is capable of using outside capital from investors and turn it into a profitable venture. This means that proof of concept and proof of management has been achieved.

BUSINESS STRATEGY
Pre-IPO
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OBJECTIVES AND PLANS FOR 2018

• Listing in 2018 on the NASDAQ OTC QB and Frankfurt
• Possible dual listing also in London
• Drilling and production programs completed for existing projects
• Acquisition of additional projects
• Market capitalization of at least $100 million in the near future (Phase 1)
• Listing on the NYSE AMEX (American Stock Exchange)
• Medium-term price development of at least $5 per share (Phase 2)
• Joint venture with international oil company to increase public profile and reputation
• Addition to the existing management and geological team to increase the company's profile

FINANCE PLAN

• Completion of the current round of financing
• Completed audited financial statements
• Filing of the S-1 Registration Statement with the SEC
• Completion of the next round of financing
• Further acquisitions of projects
• Completion of the work program in Texas
• Submission of the necessary filings with FINRA to get trading symbol
• IPO in the third or fourth quarter of 2018
• Acquisition of further assets that can quickly be put into production
• Exit strategy of the initial investors

THE PEOPLE

A Professional Management Team

TIME FRAME FOR FILINGS AND IPO

• Financial statements: after 2-3 months
• Audit: after 3 months
• S-1 Registration Statement filed with SEC: 2 months
• Comments from SEC: 2 months
• Form 15c2-11 filed with FINRA: 2 months
• Comments from FINRA: 2 months

THE OIL AND GAS MARKET IN THE FUTURE

What Experts Say

With the geopolitical risk factor firmly reinstalled into the marketoil prices have risen to four-year highs. Gasoline prices are up nearly 20% in the past year! This is noteworthy because U.S. oil (and gas) production has been soaring to record heights.

Forbes
Forbes Magazine 2 May 2018

As global oil markets shift their attention from U.S. shale oil production back to a resurgent Saudi Arabia and Russia and geopolitical concerns bearing down on oil prices, Citigroup said last Wednesday that the U.S. is poised to surpass Saudi Arabia next year as the world’s largest exporter of crude and oil products.

oilprice
Oilprice.com 2 May 2018
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Contact Us

OUR ADDRESS

Global Oil Group Inc.
4590 Deodar St, Silver Springs, NV 82429, USA

VAT : 83-2531760

Global Oil Group LTD.
20-22 Wenlock Road, N1 7GU London, ENGLAND

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