Blockchain meets Alberta Oil and Gas. Investor Presentation December 2017
Disclaimer This presentation has been prepared for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company or any related or associated company. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly this presentation does not constitute investment advice or counsel or solicitation for investment in any security. This presentation does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained herein, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom. 2
The Challenge Maintaining Production Canadian oil and gas juniors need to continue drilling operations to replace natural declines in production and bring value to investors. A Gap in Lending A changing landscape has led traditional lenders and equity investors to reduce financing activity in the junior oil and gas space. Canadian Junior Oil & Gas Pressures Junior producers are facing pressure to continue drilling programs and are seeking alternatives to traditional lending – creating an opportunity. 3
What is Oleum? Leveraging blockchain technology to fill the lending gap for Canadian junior oil & gas companies. Blockchain Oil & Gas Fintech Investment Oleum is developing a disruptive platform that will allow individual investors to gain exposure to a consortium of oil & gas assets through a unique security token. 4
The Solution Investors purchase Oleum Producers receive lending from Oleum with funds Tokens during pre-sale and ICO received from ICO Producers Individual Investors VPP Agreements* Oleum receives volumetric Investors receive dividends production payments from paid in Ethereum producers * A volumetric production payment is an agreement between a producer and investor, where a payment is made to the investor based on the production volume of the producer 5
The Oleum Token Benefits of Current Dividend Yields in Oil & Gas 1 Investing in Oleum * Diversified Upside Gain an opportunity to access diversified public and private Canadian oil and gas assets Asset Supported 4% Dividend yield, Exchange tradeable, paid in Ethereum* providing liquidity The Oleum Token is supported YTD Return for an Equal-Weight Cryptocurrency Index 3 by real cash flows from tangible assets Crypto Exposure Invest in a buzzing cryptocurrency market with potential tax advantages 1 ca.yahoofinance.com; data as at November 24, 2017 2 Equal weighted return of top 10 coins by market cap; coinmarketcap.com; data as at November 27, 2017 6 * Estimated return to investors
Canadian Oil and Gas Targets Commitments and Targets Loan Vetting Process Oleum will determine which companies are viable Oleum has established commitment lending candidates based on the following criteria: from 15 Canadian oil and gas companies to date Total company commitments are WELL TYPE & DEPTH ZONE expected to reach 25 by the date of the ICO Oleum has identified 200 target WELL ECONOMICS COMPANY FINANCIALS companies that will be contacted in the coming six months PORTFOLIO MAKE-UP $12M 5.5B Projected VPP Barrels of Oil Revenue Juniors 4,000-15,000 BOEPD Micro-Juniors l ess than 4,000 BOEPD Oleum Portfolio Companies 7
What’s an ICO? How an ICO Works Digital ‘Crowdfunding’ Investors buy digital currency issued by various companies. Funds raised through this offering are used for further development. Create the Token Select a core blockchain from which to code the currency An Alternative to Cumbersome IPOs Price the Issue Allows small purchasers to bypass IPOs & Select a valuation target for traditional financing, while giving investors the cryptocurrency issue access to token upside. Release for Trading Access to New Markets Make the coins available for purchase to create coin liquidity ICOs give average investors access to private projects that are normally exclusive to accredited investors. 8
What’s a Pre-Sale? The Idea Execution An allocation of Oleum Tokens to Oleum Tokens are received at the • • early investors date of the ICO An opportunity to take part in Liquidity of tokens will begin at • • ICO upside at a discount the ICO date – creating market access and upside for investors 9
Oil and Gas Market Oil Price & Production Forecast 1,2 Western Canadian New Well Projections 2 Gas Price & Production Forecast 1,2 Canadian Reserve Ownership 3 Junior producers Canada has the 3 rd own the majority of largest proven oil Canadian reserves reserves in the world Junior Canadian Ownership Reserves 60% 201 7 1 Price forecast; Deloitte; data as at September 30,2017 10 2 Canadian Crude Oil and Natural Gas Production and Supply Costs Outlook 2016-2036 3 Top 20 Countries with the World’s Largest Proven Oil Reserves; CEOWORLD
Timeline Commitments Lending Partnerships Sign commitments with 25 Begin lending to portfolio Create environmental oil producing companies companies partnerships Pre-Sale ICO First Profit Token sale to early Second raise of Oleum Investors receive first accredited investors Tokens dividend WHERE ARE WE GOING Grow investment Shift to an innovative Expand into other portfolio through land, dividend based token alternative energy facilities, refineries, and compensation model – sources such as pipeline acquisition paid in ETH and BTC wind and solar 11
The Oleum Team Steve Carter Dave Bradley Dave Bradley President / Founder CINO / Founder CIO & Co-Founder Over 15 years of management & Over 5 years in the blockchain industry; Currently a Mineral Land Negotiator entrepreneurship experience in security, Founded the world’s first full service for Grand Prix Energy Ltd; Member of transportation, and service industries. Had physical bitcoin store. Regarded as one of the Canadian Association of the creative vision of Oleum Capital. Canada’s top blockchain experts. Petroleum Landmen. Dave O’Connor Adam O’Connor Vice President / Founder VP Special Projects Over 30 years of marketing and sales Seven years of experience in the oil and gas experience at an executive level. His industry having worked in the Arabian Gulf, connections have proven invaluable in the North Sea, Alaska and Northern Alberta. securing key partners for Oleum. Jim Shepherd Floyd Phillip VP Land VP Events and Marketing Currently a Mineral Land Negotiator for Over 25 years experience in marketing and Grand Prix Energy Ltd. Member of the promotions within the Alberta entertainment Canadian Association of Petroleum industry. Active member of the Calgary Landmen. Progress Club. Gregory Genge Massimo M. Geremia VP Business Development Chief Advisor Over 27 years of experience in oil & gas, An extensive background in business growth and real estate, and finance. Founder and development and a masters in business current CEO of Manitok Energy. administration degree. A recipient of multiple Entrepreneur of the Year awards. 12
The Oleum Team Chris Fenn Josh Mann Dave Bradley Wildhorse Capital General Partner Wildhorse Capital General Partner CIO & Co-Founder Co-Founder of Wildhorse Capital and board Co-Founder of Wildhorse Capital and Currently a Mineral Land Negotiator member at Subway Developments Inc. former VP Business Development at for Grand Prix Energy Ltd; Member of Former Managing Director/VP Operations at Blackbird Energy, a growth oriented oil and the Canadian Association of Oliver Capital Partners. gas company. Petroleum Landmen. Ray Heller Ryan Atkins Chinese Sales Liaison Wildhorse Capital Managing Director Experience in entrepreneurship, management, 25 years of international accounting, finance, and business development; Involved in project and legal expertise across Canada and the instigation in Chinese markets. United States. Liz Curlett Randy W. Johnson Project Management Chief Counsel Over 17 years of technical management US based securities and financial attorney and experience and 10 years of oil and gas on the Board of Advisors for confound.it, one of project management experience. Europe’s leading blockchain project incubators. 13
The Crypto Market Relative Performance by Asset (YTD) 1 Dominant Coins 3 ICO 2009 | Mkt Cap $160.4B Avg Vol 335 mm | Currency based ICO 2015 | Mkt Cap $45.5B Leading Cryptocurrencies by Market Cap 3 Avg Vol 226 mm | Smart Contract $249B (2017) ICO 2013 | Mkt Cap $9.7B Estimated 2017 cryptocurrency wallet Avg Vol 30 mm | Currency based ownership 4 1 coinmarketcap.com; ca.finance.yahoo.com; data as at November 27, 2017 2 Equal weighted average composite of top 15 cryptocurrencies by market cap; data as at November 27, 2017 14 3 coinmarketcap.com; icostats.com; blockgeeks.com; data as at November 27, 2017 4 statista.com; data as at Q3 2017
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