Walter Breidenstein, CEO
NOTICE REGARDING FORWARD-LOOKING STATEMENTS Certain of the statements set forth in this Powerpoint Presentation constitute “Forward Looking Statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will likely,” “should,” “could,” “would,” “may” or words or expressions of similar meaning. All such forward-looking statements involve risks and uncertainties, including, but not limited to, those risks described herein. Therefore, prospective Investors are cautioned that there also can be no assurance that the forwardlooking statements included in this Powerpoint Presentation will prove to be accurate. In light of the significant uncertainties inherent to the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation or warranty by the Company or any other person that the objectives and plans of the Company will be achieved in any specified time frame, if at all. Except to the extent required by applicable laws or rules, the Company does not undertake any obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements. This PowerPoint Presentation is for information purposes only. An investment in our Company may only be made by qualified investors after receipt and review of our private placement memorandum and exhibits thereto.
REVOLUTIONARY TECHNOLOGY MAKES ITS DEBUT MOVING FROM THE GARAGE (2008) TO THE MARKETPLACE (2014) !
THE WORLD’S FIRST AND ONLY SINGLE STEP, PROVEN NATURAL GAS-TO-METHANOL CONVERSION PROCESS.
THE GLOBAL PICTURE RUSSIA 1400 BCF UNITED STATES 550 BCF
IRAN/IRAQ 700 BCF NIGERIA 700 BCF
FLARE VOLUME (BCF)
THE U.S. MARKET
HEAVY PRESSURE TO STOP FLARING BY... GOVERNMENT SHAREHOLDERS ENVIRONMENTALISTS LANDOWNERS LOCAL COMMUNITIES
The North Dakota Industrial Commission will require companies to submit gas-capture plans when applying for well permits starting June 1, 2014. The commission held a hearing in April 2014 to discuss how to curb flaring. The costs of reducing flaring are high. State regulators estimate it will take as much as $9 billion, in addition to $6 billion already invested, to build pipelines and refineries. “Flaring Squanders Badlands Gas As North Dakota Lacks Pipelines� Jennifer Oldham, BLOOMBERG 04/07/14 http://www.gasprocessingnews.com/news/flaring-squanders-badlands-gas-as-north-dakota-lacks-pipelines.aspx
THE GASTECHNO速 PROCESS
MOVING TECHNOLOGY FROM THE GARAGE TO THE MARKETPLACE
2007: IDEA
2013: DEMONSTRATION PLANT 2010/11: PILOT PLANT
2008: PROTOTYPE
2014: COMMERCIAL PLANT
TRACTION 2010-2012: Built Pilot Plant and introduce Early Adopter Program 2013: Construct and Install Portable Mini-GTL® Plant on Real World Flared Gas Site 2013: Ocean Tomo Recognizes Patents as #1 Michigan 2014: Start Building Commercial Scale Mini-GTL® Plant for Customer
OUR SINGLE-STEP TECHNOLOGY WILL CHANGE THE INDUSTRY.
THE COMPETITION (GASTECHNO VS. THE REST)
GASTECHNO MINI-GTL®
GASTECHNO PORTABLE MINI-GTL®
COMPACT GTL PILOT
VELOCYS PILOT
37 BBLD
4 BBLD
20 BBLD
6 BBLD
$3MM CAPEX
$0.8MM CAPEX
$Multi-Millions
$Multi-Millions
125-300 mscfd
15-50 mscfd
200 mscfd
??? mscfd
VALUE DRIVERS LOWER COST • 50% Reduction to CAPEX
IMPROVED FUNCTION • Simpler, Non-Catalytic Design
FEEDSTOCK FLEXIBILITY • Multiple Feedstock Blends
WELL PROTECTED • 11 North American Patents
Independent IP evaluation firm recognized us as #1 in their Michigan IP Innovation Index. Other notables on the list included Ford, GM, Dow Chemical, MSU, GE Aviation and more. OCEAN TOMO – July 2013
The GGFR recognized GasTechno as one of the next to commercialize behind Velocys and Compact GTL, both of which have 150+MM valuations. WORLD BANK - GLOBAL GAS FLARING REDUCTION Partnership (GGFR)
Completed 11 customer feasibility studies , one basic engineering package and built the Portable Mini-GTL field demonstration unit in 2012-2013 covering four continents. SUCCESSFUL EARLY ADOPTERS PROGRAM
BOARD OF DIRECTORS Walter Breidenstein, Chairman, CEO - GEF Founder. 20 years in oil and gas industry. Founder of 10 companies. Holder of six patents. Founder and CEO of Gas Technologies LLC and the GasTechno process. April 2007 “Leaders & Innovators” award by Lawrence Technological University. A.A.S Petroleum Technology - Northwestern Michigan College, B.A. - Ferris State University in 1987.
Scott Morris – CDO Instinctive business developer. Outside-the-box thinker and strategist. 15-year small business developer with methanol experience from the IndyCar world.
Sean Murray, Director - 25 year insurance executive. Strategic minded entrepreneur in marketing, planning and corporate governance. Former President/CEO Saucon Mutual Insurance Company, Midwest Insurance Group, RRG and Caitlin-Morgan Insurance Services.
Sam Price, Director – Electrician, 18 year serial entrepreneur. 2006 Founder/CEO - SEI Tech., supplies services and technicians throughout the USA in partnership with Emerson Instrument & Valve Services. 1996 Founder - Sam’s Electrical and Instrumentation, provider of services and technicians to Dow Chemical Company.
Dan Mr. turb - Ar edu
PROJECTED PROFITABILITY Projected Profitability $20,000,000 $15,000,000 $10,000,000 $5,000,000 $Year 1
Year 2
Year 3
$(5,000,000) Gross Profit
Net cash flow
Year 4
Year 5
PROJECTED REVENUE Revenue $80,000,000 $70,000,000
Size 200,000 scfd Plants
$60,000,000
Xstar project
$50,000,000 $40,000,000
Size 5mm scfd Plants
$30,000,000
Size 2mm scfd Plant
$20,000,000 $10,000,000 $2014
2015
2016
2017
2018
FIRST ROUND OFFERING • $7,000,000 • 7,000,000 Series A Redeemable Preferred Units (“Series A Units”) at a price per unit of $1.00 • Minimum Offering: $100,000 (100,000 Series A Units)
CORPORATE STRUCTURE GAS TECHNOLOGIES LLC Series B–Parent
MASTER LICENSE AGREEMENT
GASTECHNO ENERGY & FUELS Series A–Investors Series C–Employees
Securities Outstanding Before and After the Offering Before Offering
After Offering
No.
No.
%
%
Series A Units(1) Investors
0
-
7,000,000
17.5%
Series B Units(2) Parent
27,600,000
100.0%
27,600,000
69.0%
Series C Units Employees
0
-
5,400,000
13.5%
Common Units
0
-
0
-
27,600,000
100.0%
40,000,000
100.0%
Total
(1) Assuming the sale in this Offering of all 7,000,000 Series A Units. (2) Assumes all 5,400,000 Series C Units are issued as compensation.
USE OF PROCEEDS
INVEST IN AN EARLY STAGE START-UP THAT IS DESTINED FOR GLOBAL GROWTH!
Walter Breidenstein, CEO GasTechno Energy & Fuels (USA) LLC tel: 231-535-2914 walterb@gastechno.com www.gastechno.com