Oil and Gas Targets

The project is located in the Asphalt Ridge which is situated along the northeast edge of the Uintah Basin. The Company has 2,880 acres to develop and has identified 119 wells to be drilled in 7-well pads within each 240 acre section. Phase 1 is planned to consist of developing the first 240 acres situated in Section 22 and the western half of Section 23 of township range and section map T4S R20E, with development drilling, down hole heaters and then advanced cyclic steam production techniques planned to exploit the heavy oil resources thought to reside in the Rimrock and Asphalt Ridge sandstone reservoirs.

ASPHALT RIDGE

Asphalt Ridge​

Negligible Sulfur​

Very Low Wax​

Asphalt Ridge: 2,880 Acres

Phase 1: 240 Acres

  • Asphalt Ridge is located in the Uinta Basin – 3 Miles from Vernal, Utah
  • Electricity, Natural Gas, and C02 lines adjacent to project
  • Cheap Electricity
  • Unlimited C02 available from Electricity Plant – 40 miles away.

Subsequent Phases: 2,640 Acres

Production within our project boundaries & targeted formations

Utah’s Rimrock Asset Offers Attractive Development Attributes

  • Low State Royalty Rate
  • Low Transportation Cost
  • Shallow wells = Less costly drilling costs
  • Attractive stimulation costs using Heat/Steam vs. Fracturing process

240 Acre Phase 1 Opportunity

​

First 2 Wells have been drilled showing average of 150’ of tar sands pay​

Use downhole heater for first 70,000 bbls, then steam and CO2 for 20-year expected life of well​

Heater manufacturer, after review of formation, guaranteed 40 bbls/day before payment required.

Business model uses​ 40 bbls/day expected production​

Phase 1 Development

Wells 1 & 2 Results

1st Well spud on
May 10th,2024​
2nd Well spud on
Production proved August 28th, 2024

Multiple Offtake Opportunities​

Bitumen for Asphalt​

WTI + $15

  • Utah Refineries within 3 hours of Site
  • Willing to take all production
  • No heated tankers needed
  • Combined with Carbon Sequestration, could be used as Green Asphalt​

Marine Fuel​

150% of WTI (Quadrise Technology) ​

  • With SOx and other regulations, Marine fuel is costing upwards of 200% of WTI​
  • Adding Glycerin and water and Quadrise process to this no-sulfur oil, creates a marine fuel product​
  • Operator has North American exclusivity for Quadrise Technology​
  • In discussion with 2 Marine Shipping companies
  • Requesting 300 bbls of product to test​
  • Indicative demand for 60,000 bbls/day @ 150% of WTI​

Heavy Oil sold at Market​

150% of WTI (Quadrise Technology) ​

  • Processed on Site​
  • Trucked/Rail to Cushing or​
    LA refineries​
  • Transportation expected​
    to be $10/bbl​

Well Production Model​

150+ ft​

Thick average pay zone across two zones – Rimrock & Asphalt Ridge (HSO 2-4 190’ thick)​

2.5 Acre​

7-Well Hexagonal Spacing​

Heat initially in all wells​

Steam in middle for 20 years​

500 to 2500 ft​

Target In-Situ Oil Sands​

40% -60% Recovery​

Targeted recovery yields​
500.000 bbl per well​

  • Central well used for long-term, continuous injection heat.
  • After Downhole Heater or 6 Huff & Pull cycles​
    Steam C02 enhancement employed for long-term production​

Cyclic Steam/C02​ Production Enhancement​

Step 1

Heater/ Huff & Puff Well Stimulation
  • Original production (“O”) is multiplied by heating with steam with hot CO2 for 30 days then soaking over approximately 2-3 weeks. ​
  • Warm oil with gas pressure multiplies production.​
  • Peak production (“P”) can be 10 times the Original (“O”) declining over 6 months.​
  • Providing an Average production (”A”) about 3 times the Original (”O”).

Cyclic Steam/C02​ Production Enhancement​

Step 2

Long Term Steam & CO2 Flood​
  • Production from conventional Huff and Puff typically yields approximately 15% of oil in place. A
  • The goal of injecting steam with CO2 is to increase total production to as much as 60% while decreasing the decline between cycles. B,D​
  • Plan would be to convert to injection in only center well after 6 cycles or down-hole heater and with occasional steam to hold produced oil at temperature and continual production with goal to increase total production above 75% (proforma uses 40%) C​

Heat, Cyclic Steam/C02 Production Enhancement​

Increase Oil Saturation over time​

Investment Strategy​

Planned Fast Growth Plan​

Disclaimer: ​

Offtake agreements may not be available at 150% WTI. A RBL may not be able to be secured or at satisfactory rates. It will be impossible to determine how long it would take to recover total reserves because during the life of the well due to downhole or mechanical problems. In other words, we cannot guarantee the initial flow rate to depletion or operation cost to produce oil.​

  • Drilled First 2 Wells​
    (May 10th & 19th, 2024)​
  • Insert Heater & ​
    Refine Production​
    Method​
  • Drill Well 3​
    (October)​​

Use of IPO Offering​
Proceeds :​

  • Drill 5 Wells​
  • Develop Field with ​
    cashflow or RBL ​
    beginning Q3​
  • $2.5 M additional funded After 100 bbls production​
  • 300 bbls used to establish offtake agreements​
  • Need 3 months production of 3 wells to establish decline curve
  • Enter into Reserve Base Lending (“RBL”) agreement to fund remainder of project​
  • Drill 119 wells in Phase 1​
    $1 BN PV(10)​
  • Repeat 12x​

Share Structure & Ownership​

Name of Investor Shares %
Michael L. Peterson, CEO & Director 1,301,646 8.6%
Frank C. Ingriselli, Chairman 880,000 5.80%
Gregory L. Overholtzer, CFO 100,000 < 1%
Michael Schilling 1,095,000 7.2%
Adrian Beeston 1,183,334 7.8%
Naia Ventures 1,100,000 7.2%
Trxade, Inc.* 1,000,000 6.6%
Heavy Sweet Oil LLC 2,688,000 17.7%
Other Shareholders and Investors 4,464,399 38.5%
Total 13,812,379 100%

*NOTE: Assumes Trxade, Inc. is fully converted to common

Opportunity & Goal​

Be First to Develop the Largest U.S. Tar Sand​

Build a Billion Dollar Company within 5 years​