Wyoming Infrastructure

Authority
Company Overview –
Brian J. Cree
February 1, 2011

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 A New Natural Gas Business

B io te ch
In d u stry
Clean ,
environmentally
friendly ,
sustainable
source of
energy

Oil & Gas Industry

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Luca Technologies Inc.
•Business : Create real - time
microbial methane gas in
place at economic rates and
volumes
•Opened laboratory in August
2003
•Working in Field since 2006
•Headquartered in Golden ,
Colorado
•Field Office in Gillette ,
Wyoming
•

•70 current employees ( 15

Gillette )
•Operate over 1 , 350 wells in
PRB with projects in AL , UT ,
NM and OK
•Financial Investors
One Equity Partners
Proprietary & Confidential Kleiner Perkins
500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344

Oxford Biosciences
 Executive Management
Robert Cavnar –3 5 ye a rs in th e e n e rg y in d u stry w ith e xp e rie n ce in fie ld
President / CEO o p e ra tio n s a n d m a n a g e m e n t o f b o th p u b lic a n d p riva te
e n e rg y co m p a n ie s in clu d in g C E O o f M ila g ro E xp lo ra tio n LLC
a n d C h a irm a n , Pre sid e n t a n d C E O o f M issio n R e so u rce s
–2 5 ye a rs exp e rie n ce in th e e n e rg y , fin a n ce , a n d te ch n o lo g y
Brian Cree
in d u strie s w ith b o th p u b lic a n d p riva te co m p a n ie s in clu d in g
COO / CFO
C FO , C O O a n d E V P ro le s a t G e rrity a n d Pa tin a O il & G a s
C o rp o ra tio n

William Mahaffey , PhD
CSO
Matt Micheli , JD
Corporate Counsel
Roland DeBruyn
Founder , VP – Engineering
Services
–30 years experience related to biodegradation and biotechnology
applications to environmental and alternative energy
production
–PhD in Microbial Biochemistry from the University of Texas
–Recently a Partner at Holland & Hart law firm in Cheyenne, WY
– with a focus on trial and dispute resolution and an emphasis
on disputes arising from mineral extraction
–
–Listed in Chambers USA: America's Leading Lawyers for Business
and in Mountain States Rising Stars for Energy & Natural
Resources.
–30 years experience in the oil & gas industry
––BS in Chemical Engineering from University of Calgary; MBA from
University of Phoenix

Jeffrey Weber –35 years experience in the oil & gas industry
Founder , VP - Geosciences –BS in Geophysics from Texas A&M; Certified Professional
Geologist

R . Verlin Dannar –35 years of field operations experience, including working for
small and large oil and gas companies and managing his own
Founder , VP – Field
Operations consulting firm
 Transforming the Natural Gas
Industry

•
•

Beginning the move from hunting and

gathering coal , oil and natural gas to
the farming of methane with new
biotechnologies
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Luca Business Principles
•Founding business
principles :
–Many hydrocarbon
reservoirs are
alive with
microbes
–Gas creation is
a naturally
occurring
process
–Small conversion
of immense
hydrocarbon
reservoirs
yields large
amounts of new
natural gas in
real time
–Traditional CBM
development
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 W ES TE RN

CANADIAN

SEDIMENTARY

B AS IN S

WILLISTON
BASIN

POWDER
RIVER
BASIN
MICHIGAN
BIG BASIN
HORN
APPALACHIAN
B AS IN
BASIN

EEL
W IN D R IV ER
RIVER
BASIN
BASIN

G RE EN
R IV ER WASHAKIE
POINT B AS IN BASIN
S AL IN A FOREST
ARENA BASIN CITY
BASIN Golden – JU LE SB ER G BASIN ILLINOIS
SACREMENTO GREAT UINTA
BASIN BASIN
BASIN BASIN

SANTA BASIN
PICEANCE
CRUZ
BASIN
BASIN SEDGWICK
BASIN
PARADOX
BASIN
SALINAS
BASIN SAN KAIPAROWITS CHEROKEE
JOAQUIN BASIN RATON BASIN
BASIN
SAN BASIN ANADARKO
S AN TA JUAN
BASIN BASIN
M AR IA BLACK MESA
ARKOMA
B AS IN BASIN
BASIN
CUYAMA
BASIN BLACK
TUCUMCARI WARRIOR
PALO DURO
BASIN BASIN
BASIN

F T. WORTH E AS T TE XA S

LUCA FIELD
TATUM S AL T
BASIN NORTH
BASIN B AS IN LOUISIANA SALT
BASIN MISSISSIPPI
M ID LA ND
BASIN SALT

DELAWARE
BASIN

HOUSTON
SOUTH
BASIN
EVENTS
Sa mpl ed and La b
Te sts
LOUISIANA
V AL VE RD E EMBAYMENT SALT
B AS IN SALT BASIN
BASIN

MAVERICK
Fi eld Pr oje cts
BASIN

SOUTH

SABINAS
TEXAS
SALT
SOUTH
F LO RI DA • 37 Fi eld s
BASIN BASIN BASIN
Sampled
• 15 Geobioreactor
Di sco ver ies
S . Africa
BURGOS
February , 2010
Germany
BASIN

Proprietary & Confidential 500 Corporate Circle, Unit C, Golden, Colorado 80401
 Powder River Basin
30 , 000 CBM Wells

CBM
ND Biogenic
SD Gas
Resource :
MT 30 TCF

Bla Uplif
WY Total CBM
Big ift

Biogenic

ck
Upl

Gas
Hil
Hor

t
Production :
l
n

s 3 - 4 TCF
CBM Gas Wells
SD
0 50 NE
Miles

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Size of the Resource
Opportunity

PRB COAL MICROBIAL SUBSTRATE

RESOURCE
10000
9000
8000
7000
6000
TCF

5000
4000
3000
2000
1000
0
PRB CBM Total U . S . Gas PRB Coal
Resource Microbial
Substrate
Resource Resource

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Luca Technologies Inc.
Laying Down Core Anaerobic Experimental
Setup

Experimental
PRB Coal Core Bottle

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Luca Process - Biogenic Gas
Creation
Temporary
Nutrient
Delivery
System Surface

Proprietary
mixture of
amendments
gravity fed
into coal seam

“ Dewatered ”
“ Watered ”
Coal Sea

Pro pr i e tary & Confidential L u c a T e c h&n©oConfidential

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Corporate
Circle iteC , ,CGolden
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Unit C,G, old en80401
Golden 30380401
, ,COColorado
80401 . 53430
. 43
 Production Stage
Water reused
in
Gas
Gas Sold
an untreated Surface
Sold well

Coal
Seam

Pro pr i e tary & Confidential L u c a T e c h&n©oConfidential

Proprietary 2l0o0g4i eLsu cIan cT. e c h n o l o g i e s 5005 0 0Corporate r a t eCircle
C o r p o500 , Suite
Corporate
Circle iteC , ,CGolden
Circle
, Su CO
Unit C,G, old en80401
Golden 30380401
, ,COColorado
80401 . 53430
. 43
 Treatment Mixing & Delivery

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Restoration Success

•Field Test – 400 + Restorations completed to date

•Restoration costs are inexpensive ( $ 8 - 9, 000 / job )
•Incremental Gas – 32 , 500 Mcf over 4 - 5 years
•Average incremental daily gas production – 28 Mcf
•NPV - $25k at $4 . 50 CIG
•Regulatory Environment – Pathway to
Commercialization
–New Industry : Develop new Regulations – Wyoming
Legislation SF 116
–Pilot Phase : 2006 - 2010 Commercial Phase : Fall
2011
•Future Improvements :
–Technology Development – “ Methane Farming ”
–Sustainable Production – Technology Growth Curve
–Economic Improvement – Operations and
Gathering / Transportation
–
–
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Technology Development
Growth Curve

Learning: Applying Production ; more detailed

2010 - 2011 knowledge to 2 nd research ; transition to
Program generation green fields
projects

Gas Production Per Day , Per 80 Acre

Spacing Unit
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Business Model

1) Traditional Oil & Gas Producer

•Luca acquires existing oil and
gas properties
•Revenue source : Sale of natural
gas
2) Joint Venture Partner
•Joint development of properties
with oil and gas companies :
•Revenue source : Sale of newly
cultivated methane over baseline
production or net profits
interest
3) Licensing
•Allow others to use Luca ’ s
Proprietary & Confidential
technology
500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Intellectual Property
•Luca has 7 U . S . patents issued and 15
patents pending
•Amendment or activation
•Consortium
•Process
•Business Method
•Similar international coverage is
progressing
•Control of IP
•Mineral ownership and leases
control the O & G Industry
•Patents control the Biotech
Industry
•Trade secrets and know - how are part
of valuable Luca assets
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 Luca Value Proposition
Luca = C & P Industry = Top of Clean
Tech Class
•Big – Organic matter “behind pipe” is an
enormous untapped resource
•Simple – No change in the energy
infrastructure is needed, markets already
available
•Green – Every MCF cultivated is a chunk of
coal not mined and burned, CO2 is
presequestered.
•Profitable – Technology can be profitable
without subsidy
•Transformational – Game changing
technology
•
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
 WYIA Board Meeting

Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344