On October 1, An Unknown $500 Million Revenue U.S. Oil Technology Company Unveiled
The NEXT Game-Changing BILLION Barrel American Crude Oil BONANZA
On October 15, The SAME Company
MCW Energy Group, Inc. (MCWEF)
Announced a New 5,000 Barrel/Day Oil Plant that Makes BIG Profits From Oil Prices as Low as $50!
...Here’s Why You Want to Start Your Position BEFORE the $Oil and Profits Start to Gush
Dear Opportunity Seeking Investor,
Every word you are about to read is true. On October 1, a recently U.S. listed but unknown $500 million a year revenue microcap stock MCW Energy Group, Inc. (MCWEF) held a ribbon cutting ceremony in the middle of Utah’s desert.
60-80 local dignitaries, local media and oil industry executives witnessed the opening of the first environmentally safe, EPA approved crude oil plant in the United States that turns tons of oil-laden sand into high quality crude oil for a total cost of around $30 a barrel.
Here is the plant and its simple profit formula: oil sands go in the front end, and high quality 32 API oil comes out the back end for shipment to one of the 5 regional refineries.
Here is the money shot: high grade sweet crude oil extracted from what the US Department of Energy reports over 30 billion barrels of recoverable oil in all the oil sands of Utah. This pilot plant is set to produce 250 barrels of oil a day.
MCW just announced plans for their NEXT Utah oil plant that will produce 5,000 barrels a day.
My firm NBT Research conservatively estimates @$75 million in annual EBITDA cash flow from this new 5,000 barrel/day oil sands recovery facility when open.
The plant will also be sitting right in the middle of a 55 million oil sands reserve they lease now but will acquire with the proceeds of the new plant financing.
The REAL "Money Shot?"
At today’s oil prices the value of the recoverable oil from this single lease exceeds MCWEF’s present market cap by 10X-20X.
In fact, the DOE reports over 30 billion barrels of recoverable oil in all the oil sands of Utah.
Question: Have you ever discovered a company that just seems too good to be true?
I know when I first discovered tiny microcap Suncor (SU) and their now multi-billion barrel oil sands operations in the late 90’s, it sounded too far-fetched: turning thick gooey tar sands into refinery ready oil...really?
Well...that little microcap company grew into the giant $58 billion market cap Suncor Energy, Inc. and turned every $1000 invested into the stock into
$75,000 at its peak in 2008—75 TIMES your original investment.
Investors with $15,000 invested in SU stock in the early days became millionaires.
Fast forward to September 2014
When I first heard about an American oil company that was just weeks away from opening a major oil sands oil refinery in America...specifically in Asphalt Ridge, Utah about 135 miles southwest of Salt Lake City...
...I of course assumed it was one of the major US oil companies—Exxon, Conoco Phillips, Chevron.
Maybe even Suncor.
But when I discovered that the ACTUAL company which owned the proprietary technology for extracting 1.1 billion barrels of oil from Asphalt Ridge’s 32,000 acres of rich oil sands was in fact a tiny microcap company, I was frankly floored.
Could I have discovered another Suncor all over again?
When I learned the company’s CEO was a former President of Exxon Arabia and a true legend in the oil exploration and production industry that had put his 50-year reputation on the line for this project, I dug even deeper.
Finally...when I saw the documents that proved this tiny company owned its own EPA approved and patented oil sands production facility in Utah opening October 1, 2014 AND a 1000+ acre oil sands lease within an estimated 800 million known barrels of recoverable oil with another 310 million projected (source: Bureau of Land Management report 2012)...
... My blood was boiling and heart was racing!
It was just like discovering microcap Suncor at $2 a share...again!
That’s when I got on a plane for Salt Lake City and high tailed it to Asphalt Springs to see this technology miracle for myself.
When I saw the plant...and that this whole technology fairy tale was indeed VERY real...
...it was THAT moment when I knew the NEXT great oil sands fortune was likely going to be made owning shares of this tiny $37 million market cap microcap oil sands company BEFORE the world knew of its big plans.
The company is MCW Oil Sands Recovery, LLC. It’s a division of publicly traded MCW Energy Group, Inc. (MCWEF), one of the Western region’s largest gasoline distributors with nearly half a $billion in annual sales.
This is NOT a no-revenue all promise microcap stock for sure. But its oil sand story has been many years in the making.
The real story here has NOTHING to do
with delivering gasoline.
This story is about how a tiny company (with help from Russian technologists…how ironic!) has solved the technological and economic problems that have prevented Utah from becoming America’s next great oil resource.
To really understand the magnitude of this opportunity before you, you first have to understand
- How many BILLIONS of barrels of oil lie fallow in the rich oil sands of Utah
- Why up until now there was no economic way to recover that oil and get it to market
- Why MCW’s oil separation technology is such a technological breakthrough not ONLY for the Utah oil sands resource…but for ALL of the estimated 2-3 trillion barrels of oil still locked in the oil sands located around the world.
Fact #1: When it comes to oil sands deposits
Utah is a major world player.
|UTAH TAR SAND SUMMARY
|Tar Sand Triangle 16.0 billion bbl
||Sunnyside 6.0 billion bbl
|P.R. Spring 4.5 billion bbl
||Asphalt Ridge 1.5 billion bbl
|Hill Creek 1.2 billion bbl
||Circle Ridge 1.1 billion bbl
|Other Deposits 1.4 billion bbl
||White Rocks 0.3 billion bbl
|Source: Utah Bureau of Land Management
||Total Shallow Oil 32.0 billion bbl
Although several of America’s western/southern states have oil sands deposits, Utah contains approximately 55% of the nation’s total deposits, concentrated in eight major deposit areas with a total resource of over 32 billion barrels of oil. (Source: US DOE).
If you want to cut to the chase, read my full research report here.
But let’s back up…just what exactly IS an oil sand?
Oil sands, or tar sands as they are referred to by old time energy analysts like me, are a type of unconventional petroleum deposit. It’s really a type of oil shale that is powering the American Shale Energy revolution, but different.
The oil sands in Utah are known as “oil-wet” deposits and contain a mixture of sand and a dense, extremely viscous form of petroleum technically referred to as bitumen or tar. There are many other deposits of oil sands throughout the world, most notably in Venezuela and Canada, where they are known as “water-wet” deposits because they’re typically found deep in the earth, mixed in with water, sand and clay in a semi-solid natural deposit.
Fact #2: Utah could become a major source of domestic American energy—key phrase “could be”
Exxon and other major oil companies tried in the late 1970’s and early 1980’s but three killer problems kept them from success…and they abandoned the area and their oil sand leases.
Why did they fail? Let me count the ways:
#1 Bad Economics: their technology was highly inefficient with >$60 a barrel recovery costs with oil selling for <$30 a barrel by the time they were ready to produce…non-starter.
#2 Lack of Water: the old oil sands extraction technology required millions of gallons of water (Utah is mostly desert btw) which was scarce and getting scarcer
#3 Environmental Damage: The millions of tons of spent shale produced in their process every week had to be remediated and disposed of…more expense.
Key point: At today’s oil prices ($85-$105 range), IF there was a waterless way to convert the oil in the tar sands into petroleum efficiently (under $35) in an environmentally friendly way…that company would be worth a fortune!
REALLY key point: I believe MCW Energy Group, Inc (MCWEF) is just that next $billion oil company.
When MCWEF unveils its new oil sands recovery plant deep in the middle of their Utah oil sands property...
...and proved to the world that its waterless/environmentally safe/EPA approved/patented oil sands extraction technology is a true game changer...
Yes MCWEF sounded too good to be true…
…But just like Suncor, it IS the REAL DEAL!
Action Step: To take full advantage of my research you must put your money to work AHEAD of the pack and own shares before the big grand opening reveal hits the financial media reports.
With MCW currently invisible on Wall Street (for now) and a market cap of just $38 million, who KNOWS what its value will be when it is producing
5000 barrels a day of oil at $80 avg. sold to local oil refineries…
…$400,000 a day
…$4,000,000 every 10 days
…$40,000,000 every 100 days
With $50 gross profit on every barrel of oil sold
…$250,000 a day
…$2,500,000 every 10 days
…$25,000,000 every 100 days
At around $1 a share today…I literally cannot accurately access the FUTURE value MCWEF except to say…
I think without question that MCWEF has the very real potential to be ANOTHER millionaire maker stock like Suncor Energy (SU) was for early shareholders.
Here’s my simple to understand investment case.
#1 Let’s Fast Forward to Asphalt Ridge 2014
MCW’s initial oil sands lease is located in the heart of Asphalt Ridge in the Uinta Basin, one of Utah’s 8 major oil sands deposits. The 1128 acre lease is approximately 10 miles from Vernal, the state’s main hub of oil and gas exploration and development with a complete infrastructure of rail facilities, roads, power grid and truck transportation systems. The site is approximately 125 miles from Salt Lake City and proximal to five regional oil refineries.
As I’ve reported, the initial oil sands lease holds at least 50 million barrels of oil within it vast resource of oil sands.(source: MCW Energy Group and Utah BOE reports)
MCW Energy Group also has a five year Supply Agreement with Temple Mountain Energy Inc., of Utah, which provides MCW with 8,333 tons of oil sands material per month until the year 2016. The terms of this Agreement also includes a process-ready, stockpiled inventory of 100,000 tons of oil sands material which will be instrumental in the rapid start-up of MCW’s 250 bpd pilot plant.
On October 9th, MCW announced as part of the development plan for their 5,000 bpd plant they would BUY the Temple Mountain Energy oil sands resource outright to ensure enough oil sands production for 50 years!
#2 MCW’s oil sands technology breakthrough
Remember all the problems with Utah oil sands in the early 80’s we talked about earlier?
#1 Bad Economics: their technology was highly inefficient with >$60 per barrel recovery costs
#2 Lack of Water: the old technology required millions of gallons of water (Utah is mostly desert btw)
#3 Environmental Damage: The millions of tons of spent shale had to be remediated and disposed of enormous cost and damage to the environment.
...MCW’s oil sands extraction technology IS NOW the PROVEN answer to making an environmentally safe fortune from the Utah oil sands.
It’s a patented closed-loop waterless technology already is approved by the EPA!
In short, that means Obama could not stop this project if he wanted to!
Instead of water MCW uses a unique proprietary technology featuring benign solvents to separate the high grade oil from sand.
American Institution of Chemical Engineers honors MCW’s CEO,
Dr. R.G. Bailey.
January 14th, 2014
The prestigious American Institute of Chemical Engineers recently bestowed an honor to MCW’s Chief Executive Officer, Dr. R. G. Bailey with their recognition of his dedication and contributions to the profession over the past fifty years as a Life Member. While he was a ChE student at the University of Houston, Mr. Bailey won the Student Paper Contest for the Southwest Region of Colleges and Universities in 1964. His paper was titled, “Chemical Engineering of Fuel Cells,” which was far ahead of its time, and he was recognized at the AIChE National Conference that year.
Mr. Bailey’s extensive experience in both petroleum and chemical engineering disciplines enhances MCW’s broad energy strategies as both an upstream and downstream entity. Dr. Bailey will continue to utilize his international energy experience to guide both of MCW’s divisions and to provide added value to MCW shareholders.
The solvents remain in the system for reuse…and the now clean sand goes safely back to its original home 99% cleaner than when it came in.
Key Point: former President of Exxon Arabian Gulf, Dr. R.G. Bailey (Jerry) was so impressed by this technology that he has joined MCW Energy Group as CEO to bring this project to completion and put together the oil production and refining group.
Really Key point: When a man of his stature and name in the oil industry puts reputation behind the MCW Oil Sands extraction technology that means a lot.
#3 The game changing MCW oil sands extraction technology & economics in a nutshell
(source: MCW and Chapman Engineering Report)
- It’s effective on all types of hydrocarbon deposits with 99% hydrocarbon extraction efficiency…amazing.
- The process requires ZERO water...only benign solvents.
- Over 99% of the solvent used to separate oil from sand is recovered and reused in a continuous flow, closed-loop system
- EPA approved…no greenhouse gases are created and exhausted into the air from the process.
- No high pressure or temperatures are required in the process…with an extremely energy efficient 20:1 energy efficiency rating vs. the Alberta oil sands averaging 4:1
- Small plant footprint—the technology is scalable from 250 b 2000 bbl/day units. $10k per barrel cost vs. $1 million+ for Alberta oil sands.
- No expensive production infrastructure required—Canada’s in-situ oil sand extraction plants cost tens of $billions—a 2000 barrel a day plant costs MCW about $20M…$10k a barrel…amazing.
- Easily set up, extremely mobile extraction units. Each mobile unit can be moved from oil sands lease to lease on a flatbed 18-wheeler.
- 100X Lower plant start-up costs (vs. $multi-billion Alberta oil sands plants) equals faster capital invested payback and vastly superior economics.
- Low production costs: $30 bbl average includes royalties paid to leaseholder
- If existing leasehold is acquired, production cost drops to $15 a barrel
- High Netback margins average: $49 bbl average
- Low transportation costs. Unlike Canadian heavy oil sand oil (which requires the addition of expense diluents to ship in a pipeline) NO oil enhancement is required to transport MCW’s much lighter 22 API crude oil.
- Easy Refiner Access: 5 nearby compatible petroleum production refineries
- Easy access to roads, power & required infrastructure
- The positive, pro-oil sands development environment in Utah vs. Alberta
#4 MCW’S extraction technology was recently
evaluated & accredited by a nationally recognized INDEPENDENT engineering firm.
MCW’s oil extraction technology was recently evaluated by the nationally recognized consulting firm, Chapman Engineering Company, who are experts in petroleum and chemical engineering as well as providing economic analyses for resource development processes.
The independent engineering report concluded
“MCW’S EXTRACTION TECHNOLOGY IS
VIABLE AND COST EFFECTIVE.”
“The Company’s oil sands extraction process has been designed utilizing good engineering practices and confirmed chemical and physical principles. Many innovative chemical and engineering aspects have been incorporated into the process to achieve over 98% of bitumen extraction from the oil sands, and a greater than 99.5% solvent recycling efficiency. The principles and processes implemented utilize established technologies, and are comparable to ones successfully utilized in different industrial applications for many years.”
The conclusions of the Chapman Report show that MCW’s extraction process could reasonably expect to have overall processing costs of $30.00 representing a netback of approximately $49.00 per STB.
#5 HERE’S HOW MCW energy group’s
extraction technology works
Preparatory Stage: Mining and crushing of the oil sands ore to prepare for processing.
Stage 1: Crushed ore delivered into patented fluidized bed extractor. Extraction process is performed at temperatures between 50-60 C degrees
Stage 2: Solvent composition with extracted oil bitumen is delivered from extraction column to the evaporator and then to distillation column.
Stage 3: Hydrocarbons (oil/bitumen) are extracted from the solvent in the distillation column and pumped to the storage tank.
Stage 4: Solvent is recycled, warmed up and returned back to the extractor within the continuous flow, closed-loop system.
Stage 5: Purified sands leave extractor and go through the drying process.
Key Point: The extracted crude oil is free of sand and solvents. The sand exits the extraction system as clean, dry sands, which can be sold or replaced to its origin. Any heat generated during the process is recycled.
Really Key Point: The crude oil produced is very low in sulphur content (reducing refinery costs for added processing) and the average API range (i.e. the gravity) for Utah oil sands is excellent @32 API, making it much easier and less expensive to transport than heavy Canadian oil.
Final point: I really don’t know what more to say...
...except that for risk tolerant investors this opportunity is a world class no-brainer!
Consider these facts very carefully and then decide how much of a position you can comfortably afford:
- Early Investor Are Getting the Amazing MCW Oil Sands Technology and 50 Million+ Barrels of Oil for basically FREE.
- Let’s not forget the existing fuel delivery business will generate almost $500 million in revenue in 2014...this is hardly a no-revenue risk microcap stock. At current value, MCWEF market cap only reflects their fuel distribution business and their $10 million investment in their initial oil sands recovery plant…you are getting MCWEF’s world class technology and 50 million barrel oil reserves for basically ZERO! Buying MCWEF stock at these prices is like buying a never ending call option on the oil sands business.
- WHEN MCW BUYS OUT its Asphalt Ridge Lease, Its Production Costs drop from @$30 per barrel to @$20 a barrel —and the Economics REALLY Go Nuts!
MCW’s oil production cost is already 50% lower than the horizontal drilling E&P costs in the Shale Oil regions of the United States. It is VERY likely that as the initial 250 barrel a day plant gets expanded to 5000 barrels a day…MCW uses some of that big cash to buy out their Asphalt Ridge lease and knock $15 a barrel OFF their production costs. Those economics are NUTS!
- My associates at our investment banking affiliate NBT Capital Markets tell me MCWEF is a "lock" to acquire $100 million+ in financing to expand their 250 barrel a day plant to a 5000 barrel a day facility. The economics and scalability of the MCWEF oil sands separation technology is unlike anything ever seen in the industry. This financing will be "structured finance" tied to the output of the plant—that means very little dilution to early to shareholders!
- This is an American Energy Game-Changer Too! There are millions of acres of Utah Oil Sands available for lease or purchase—with MCW technology literally millions of acres and 32 billion barrels of oil from which to extract crude oil are NOW very economic and profitable! That makes this play bigger than the now famous Bakken Shale (source: BLM reports)
- This is also a WORLD Oil Sands Game-Changer! Millions of Utah like oil wet sand is available for lease or purchase around the world (source: DOE reports)—with MCW millions of acres and billions of barrels of oil are economic and environmentally friendly to extract.
- Licensing the MCW Oil Sands Technology Could Easily Prove MORE Profitable than Their Utah Oil Sands Operations!
With millions of Utah like oil sand available for lease or purchase around the world—licensing the MCW technology for a fee+ a never ending oil royalty stream could very well create more shareholder value for MCW Energy Group that its entire Utah energy assets and revenue.
- The Entire Oil Plant Development Process is PERFECT for a $100 million+ Master Limited Partnership (MLP) Deal
MLPs are one of the hottest investments on Wall Street. $250 billion has been raised for MLPs in the last few years…retail investor love their 6%+ yields. With the amazing economics of Utah oil sands now possible because of MCW Technology, it’s easy to forecast the creation of a very high yielding $100M+ Oil Sands Processing MLP created just for the Utah oil sands.
This means virtually unlimited access to low cost capital to MCWEF to build additional 5000 barrel a day plants all over the Utah oil sands region.
Final Point: I am sure you’re aware there are truly only a few times in an investor’s life when they truly have the opportunity to catch lightening in a bottle…to become a ground floor investor in a game-changing technology company BEFORE the world discovers its immense potential.
For all the reasons stated above, I think the case for MCW Energy Group (MCWEF) becoming one of those life-changing investments in your portfolio is a strong one
IF you build positions NOW at this current value.
Yours for Life-Changing Wealth,
Tobin Smith, C.E.O., NBT Equities Research
PS: My transformational growth recommendations like MCWEF are up 51% so far in 2014 (Sept 30) — Get the full story on Next Big Thing Investor Pro here...
MCWEF is most definitely a
“TAKE ACTION” OPPORTUNITY!
Here’s what to do now:
Call your broker and discuss how large a position of MCW Energy Group, Inc. (MCWEF) you can comfortably own. Refer your broker to this report. All the information you’ve read here is publicly available... easy for your broker to verify. Tell him about me... my credentials. When your broker has done his homework for you I predict he will agree that MCW Energy Group, Inc. (MCWEF) is an opportunity that you must act on now for your aggressive risk capital.
If you take care of your own account, go online now and verify what I have shown you here today... and download our Special Report. When you are done... I am confident that you will buy a block of MCW Energy Group, Inc. (MCWEF) at a price that could allow you to multiply your money by as much as 10X ...or higher…as news of this amazing business makes its way to Wall Street