Patrick Sullivan
Eugene, OR (USA)
Role(s):
Founder/Owner/Principal
MAGE NRG LLC
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Startup
Location:
Eugene
Industry:
Other
Year Founded:
2022
Number Employees:
1-10 people
Business Stage:
Growth (not profitable)
Entity Type:
Limited Liability Company
Description:
We developed a method to find and verify oil reservoirs prior to drilling with 90% probability.
MAGE NRG LLC is seeking $4M in debt or an equity investment for a special purpose project company to develop a series of 60 virgin oil reservoirs in the Illinois basin that we have discovered. We have verified the first 8 targets as having oil reservoirs. Under our precursor company, Aniki Oil LLC, we developed a method using radiometrics and geochemistry to find and validate new oil reservoirs at the surface prior to drilling. Historically, each one of the methods we used results in a 75-85% success rate for production, based on published data. We ran 2,000 miles of reconnaissance surveys in the Illinois Basin and used geochemistry to validate new oil reservoirs.
MAGE NRG was founded as a project company to drill the best 5 prospects that emerged from this exploration effort. We anticipate that all five prospects will result in new field discoveries. We estimate that these reservoirs will produce 5 MBO with gross revenues of about $350M. This is shallow, conventional vertical drilling.
We are seeking $4M in company funding, not conventional oil prospect/working interest funding, based ona $12M pre-money valuation. The funds will be used to acquire leases, drill, complete producing wells and develop production revenue from the first 2 or 3 prospects. We can then raise increasing amounts of development capital as debt secured by our initial and ever-increasing production revenue and reserves. The follow-on debt will be used to complete development of teh first 2 or 3 oil fields and acquire and develop the remaining 12 or 13 oil fields. So, a small up-front investment can be leveraged into major revenue and multiples. We anticipate fast development for 4 or 5 years, then ceasing development to pay off debt and take profit prior to selling our company or assets at year 8. We anticipate approximately $100M in profits will be generated in the final 4 years. Profits will be paid as owner distributions during the final 4 years and from selling the producing oil fields at exit.