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CORPORATE PROFILE Save The World Air (STWA), Inc. (OTC QB: ZERO) is a developer and vendor of commercial flow assurance solutions designed to deliver operational benefits to the global energy industry. As a trusted partner and certified supplier to oil producers and transporters, STWA designs and manufactures industrial-grade equipment for improving the transportation efficiencies and economics in all sectors of the oil & gas industry. Key industry data indicate that crude production is near or at historical highs, which is creating bottlenecks in upstream and midstream sectors of the oil & gas market. STWA’s technology is an energy efficient solution for improving the economics of oil extraction and transportation.. STWA’s AOT (Applied Oil Technology), which is licensed from Temple University, is undergoing efficacy tests for midstream applications through the implementation by a major North American pipeline operator. In May 2014, the operator entered into a six- month lease, with an option to extend it for an additional 84 months as well as an option to purchase the equipment during the term of the lease. Concurrently, STWA’s goals include finalizing the manufacture of AOT’s midstream commercial product line and completing the multiple certification processes required for commercial viability. Over the course of the last 10-12 months, a significant restructuring of the Company’s Management and Board and the upgrade to full Sarbanes-Oxley SEC compliance has been completed, creating a new high-growth investment opportunity where the oil & gas and cleantech industries intersect. STWA HEADQUARTERS 735 STATE ST. #500 SANTA BARBARA, CA 93101 805.845.3581 WWW.STWA.COM INDUSTRY CLASS SECTOR: INDUSTRIAL GOODS INDUSTRY: INDUSTRIAL EQUIPMENT & COMPONENTS OTCQB: ZERO CONTACT [email protected] ABOUT STWA, INC.

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Page 1: CORPORATE PROFILE - content.stockpr.comcontent.stockpr.com/stwa/media/01a0052f8758742d9c8... · CORPORATE PROFILE STWA combines scientific research with best practices engineering

CORPORATE PROFILE

Save The World Air (STWA), Inc. (OTC QB: ZERO) is a developer and vendor of commercial flow assurance solutions designed to deliver operational benefits to the global energy industry. As a trusted partner and certified supplier to oil producers and transporters, STWA designs and manufactures industrial-grade equipment for improving the transportation efficiencies and economics in all sectors of the oil & gas industry.

Key industry data indicate that crude production is near or at historical highs, which is creating bottlenecks in upstream and midstream sectors of the oil & gas market. STWA’s technology is an energy efficient solution for improving the economics of oil extraction and transportation..

STWA’s AOT (Applied Oil Technology), which is licensed from Temple University, is undergoing efficacy tests for midstream applications through the implementation by a major North American pipeline operator. In May 2014, the operator entered into a six-month lease, with an option to extend it for an additional 84 months as well as an option to purchase the equipment during the term of the lease.

Concurrently, STWA’s goals include finalizing the manufacture of AOT’s midstream commercial product line and completing the multiple certification processes required for commercial viability.

Over the course of the last 10-12 months, a significant restructuring of the Company’s Management and Board and the upgrade to full Sarbanes-Oxley SEC compliance has been completed, creating a new high-growth investment opportunity where the oil & gas and cleantech industries intersect.

STWA

HEADQUARTERS735 STATE ST. #500SANTA BARBARA, CA93101

805.845.3581

WWW.STWA.COM

INDUSTRY CLASSSECTOR:INDUSTRIAL GOODS

INDUSTRY:INDUSTRIAL EQUIPMENT & COMPONENTS

OTCQB: ZERO

[email protected]

ABOUT STWA, INC.

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CORPORATE PROFILE

• Rapidly expanding target market - An estimated $90 billion will be invested in 2014 and $200 billion by 2035 (U.S. Dept. of Energy estimates) in midstream and downstream infrastructure to support the projected increase in global energy production

• The Company’s top three target sectors of the oil & gas market in order of greatest sales potential for STWA are: upstream (producers), midstream (transporters) and downstream (refiners)

• Cost-efficient, clean (reduced carbon footprint) solution for increasing the rate at which oil and gas are transported

• Strong patent protection (47 patents or patents pending), proprietary technology licensed from Temple University, and industrial know-how provide a several year competitive technology lead

• Proven ability to execute:

- Successfully completed the first commercial installation of 110-tons of AOT commercial equipment to one of the largest pipeline companies in North America

- Industry-certified and meets multi-national quality control inspection standards

- Solid distributorship relationships in established and emerging shale oil production regions

• Cash on hand (~$4 million at March 31, 2014) estimated as sufficient to fund operations through March 2015

• Debt free: shareholder equity totaling ~ $3.1 million

• Significant expansion opportunities to deploy AOT and other STWA-developed technologies within similar and related capital-intensive distribution and transportation networks on a global scale

• Strong relationships and continued collaboration with tier-one multinational oil producers and pipeline transportation companies fosters ability to introduce additional technology solutions into the industry in the future

• New management team and a strong independent board of directors, all with deep industry expertise and business acumen, has set the strategic direction and laid the foundation for success

INVESTMENT HIGHLIGHTS

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RECENT DEVELOPMENTS

• May 27, 2014: STWA, Inc. announced first revenue of $60,000, representing the first lease payment from the installation of its AOT flow assurance product on a pipeline in Wichita, Kansas owned by a major North American pipeline operator. The lease agreement includes designing and deploying an AOT Midstream installation capable of handling a 500,000-barrel per day (bpd) high-pressure pipeline. The 110-ton installation has received regulatory approval for installation on the nation’s pipeline infrastructure, paving the way for commercial use anywhere in the world.

Latest news:

- Executed non-disclosure agreements with two top tier multi-national energy entities

- Filed for additional intellectual property provisional patents

- Completed operational realignment that brought the Company into full Sarbanes-Oxley (SOX) Section 404 compliance

A CLEAN SOLUTION FOR IMPROVING PIPELINE EFFICIENCY

AOT Supports Safer, Greener And More Economical Delivery Method For Transporting Fuel

Finding safer, more environmentally friendly ways to transport oil to refineries was STWA’s challenge. Examining the pros and cons of existing delivery systems, required experts to consider not just the monetary costs, but also the risk factors: How much oil is released? Do land areas or water volumes suffer from contamination? Is habitat destroyed? What levels of CO2 are emitted? That’s where STWA’s AOT Viscosity Reduction System can play a critical role.

In 2008, STWA embarked on an aggressive strategy to develop industrial products capable of optimizing the performance and safety of crude oil pipelines, which are by far the safest way to transport fuel, according to statistics compiled by the Association of Oil Pipe Lines (AOPL).

AOT is designed to provide the following benefits:• Increase maximum flow rates• Reduce pump station power consumption• Optimize flow assurance• Enhance pipeline integrity• Prevent bottlenecks

By using the AOT technology to move oil through pipelines at all-time rapid speeds, huge cost savings are complemented by reductions in pollution that would have been caused by alternative forms of oil delivery mechanisms specifically, trucking, shipping and rail. Furthermore, STWA’s AOT Viscosity Reduction System has proven to reduce the amount of energy used for oil transport via pipeline. STWA technology is instrumental in the safer, more cost-effective delivery of greater volumes of oil, while having positive environmental effects via reduction in energy consumption.

By using the AOT technology to move oil through pipelines at all-time rapid speeds, huge cost savings are complemented by reductions in pollution that would have been caused by alternative forms of oil delivery mechanisms -- trucking, shipping and rail.

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Solid-state Crude Oil Viscosity Reduction System

TECHNOLOGY

AOT can be a stand-alone solution or a supplement to existing technology in a field called ‘flow assurance.’ The paraffin and asphaltene content of crude oil creates drag and reduces pipeline flow rates under normal conditions, but most notably at cold temperatures such as those found in the Rocky Mountain regions in the U.S. In general, oil producers reduce viscosity by adding diluents or other types of drag reducing agents that dilute the oil by as much as 50%.

STWA’s AOT technology differs from dilutant techniques in that it operates through dielectrophoresis. Dielectrophoresis engages the paraffin and the asphaltene content in crude oil, creating a conformational change to the molecular structure.

This conformational change to the paraffin and/or aphaltene in the crude oil reduces the total surface area of the molecules for a constant volume fraction, thereby reducing the drag within the fluid itself. This reduces viscosity irrespective of heat and chemical volume fraction.

For pipeline operators, this directly translates to less friction within the existing pipeline network, thereby reducing the amount of pressure and pumping power required to achieve the same flow rate or alternatively, the ability to flow more oil through the line

• STWA’s AOT technology decreases viscosity by up to 56%

• AOT bolts on to existing pump stations

• The AOT device is 33 ft x 8 ft x 8 ft. Each system weighs approximately 20 tons and can handle up to 5,000 gallons per minute (gpm).

• The system is available in pressure ratings that exceed 3,000 psi. The system can be adapted to commercial flow rate in excess of 5,000 gpm by adding multiple AOT units installed in parallel with each other at pump stations to increase total flow capacity.

NUMBERS & FACTS

if the original pumping pressure and power settings are maintained. This allows users of the AOT technology to:

• save operational expenses and decrease pipeline pressures

• increase the total flow volume per day of an existing asset by 10% to 15%

• in certain instances, “de-bottleneck” a choke point in their pipelineSTWA’s AOT

aggregates sub-micron

particulate matter into nano- and

micron-scale clusters

Reduced particle surface

area lessens drag and viscosity

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CORPORATE PROFILE

STWA combines scientific research with best practices engineering and inventive problem solving to serve the real world needs of today’s energy industry. Management’s core strength lies in working collaboratively with customers to design, develop, manufacture and implement cutting-edge solutions that deliver high value technology and solutions. It is through management’s partnership with engineers and representatives from leading exploration, extraction and transportation entities worldwide that STWA has become a trusted vendor and respected innovator working collaboratively along side top-tier energy sector companies.

PROVEN ABILITY TO EXECUTE

The current STWA management has created a stable, robust foundation for growth in a dynamic industry. As of March 31, 2014, STWA was debt free with a cash balance of ~$4 million, providing sufficient cash for approximately one year of operations. In addition, the Company announced in May its first revenue stream ($60,000 per month) from the lease of the AOT technology to its first customer. The Company has no litigation and is in full compliance with SOX 404 financial reporting requirements.

IMPROVED FINANCIAL POSITION

STWA has licensed its proprietary technology from Temple University. The AOT system includes patented technology as well as proprietary know-how that has been combined to create a unique solution for improving the economics and efficiencies of commercial-scale crude oil transport.

STRONG PATENT PROTECTION AND INDUSTRY KNOW-HOW GIVE STWA A COMPETITIVE ADVANTAGE

U.S. and global energy production is accelerating due to new technologies that have made previously unrecoverable assets viable. This in turn is driving unprecedented output rates. ‘Tight oil’ from a growing number of shale formations including Eagle Ford, the Permian Basin, the Bakken and the Marcellus Formations have surpassed existing industry pipeline capacity largely constructed in the 1970s and as far back as the early 1900s.

This has forced producers to compete for less attractive transport alternatives, leading to massive growth in rail and highway traffic and creating logistical, environmental and safety challenges as well as higher operational expenses and significant liability exposure. As producers seek to bring surging production to market, new technologies and methodologies are being developed to eliminate pipeline chokepoints and solve related problems that have far-reaching economic, national security and public safety implications.

RAPIDLY EXPANDING TARGET MARKET

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Additional Applications for AOT

PRODUCT PIPELINE (RESEARCH & DEVELOPMENT)

AOT™ Viscosity Reduction System, the Company’s first product to market, is a suite of commercial crude oil pipeline flow assurance solutions that are installed at pipeline pump stations. AOT is cost-efficient, low maintenance, industrial-grade equipment that unlocks pipeline chokepoints, improves pipeline flow capacity, reduces energy requirements per ton-mile of product shipped, and extends the life of pipeline equipment.

Based on intensive analysis of the real world needs of tier-one oil producers and pipeline transportation companies throughout the world, STWA has determined that the AOT™ Viscosity Reduction Systems offers a broad spectrum of pipeline optimization applications. In addition, applications outside increasing oil flow speeds are also in development. STWA plans to build a portfolio of solutions consisting of alternate applications for the AOT technology as well as other technologies for use within related capital-intensive distribution and transportation networks.

Areas in which the company believes that the AOT viscosity reduction systems has applications:

Energy & Petroleum• dewatering facilities• gathering systems• emulsion separation

Very Large Cargo Containers (VLCCs)• Accelerated onload/offload time• Bunker fuel enhanced combustion

Offshore• Cold environments• Hydrates• Paraffin deposits

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MANAGEMENT TEAM

GREGG BIGGER Chairman of the Board and Chief Executive Officer

Gregg Bigger most recently was Founding Partner of Rocfin Advisors, a strategic management consulting firm that provided advice and direction to companies in the energy, clean tech, and emerging technology markets. Mr. Bigger was Founder and Board Member of The Bank of Santa Barbara. Earlier in his career Mr. Bigger held a variety of key management and leadership positions including serving as Vice President in the Private Client Group of U.S. Trust and First Republic Bank. Mr. Bigger served in the United States Marine Corps’ Special Operations in Amphibious Warfare and Cliff Assault.

MICHAEL MCMULLEN Controller

Mr. McMullen has spent his career in corporate development and finance. Prior to joining STWA, he served in senior executive capacities with several first-to-market energy and technology companies, including FloWind Corp. and SomethingNow Inc. As a management consultant and financial advisor to mid-market healthcare and bio-science entities, Mr. McMullen specialized in providing growth and transition management oversight to companies serving HMOs, hospitals and cancer centers.

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NON-EXECUTIVE BOARD MEMBERS

RYAN ZINKE

Ryan Zinke served as a Montana’s member of the Montana Senate in the 2009 and 2011 legislative sessions after retiring from active military duty in 2008 as a disabled veteran. Senator Zinke’s military career spanned 23 years as a US Navy SEAL. He began as a graduate of Officer Candidate School and SEAL training (class 136) after which he was assigned to SEAL Team ONE in Coronado, Calif. There, he led counter-insurgency and contingency operations in the Persian Gulf and the Pacific theater of operations. Twice Mr. Zinke was selected to SEAL TEAM SIX as a Team Leader, Ground Force Commander, Task Force Commander and Current Operations Officer in support of National Command Authority missions. Currently, he serves as CEO of two business development firms specializing in advanced technology that serves companies including Raytheon, Northrop-Grumman, General Dynamics, Sierra Nevada, Unmanned Systems Inc. and Katmai, among others. Sen. Zinke earned his B.S. in Geology from the University of Oregon and holds an MBA in Finance and a Masters of Science in Global Leadership from the University of San Diego.

CHARLES R. BLUM

Charles R. Blum served as President and Chief Executive Officer of STWA from 2010 to 2012. His career includes 22 years as the President and CEO of the trade group Specialty Equipment Market Association (SEMA), which serves 6,500 manufacturers and distributors of automotive parts and accessories. SEMA hosts the world’s largest automotive aftermarket trade show and under Mr. Blum’s leadership grew it from a small number of entrepreneurial companies to membership that sells more than $31 million annually in retail automotive products. Mr. Blum attended Rutgers University.

NATHAN SHELTON

Nathan Shelton was President and part owner of K&N Engineering where he oversaw its growth into an industry leader. After selling his interest in 2002, he founded S&S Marketing, which operates an automotive aftermarket parts rep business. Mr. Shelton is the recipient of numerous industry awards; he served on the board of Specialty Equipment Market Association (SEMA) including serving as its Chairman from

2002 to 2004. In 2007, Mr. Shelton was elected to the SEMA “Hall of Fame.” Mr. Shelton served honorably in the United States Seabees from 1968 to 1972.

MARK STUBBS

Mr. Stubbs currently serves as Chief Financial Officer for London Stock Exchange listed BBA Aviation in its Aftermarket Services Division. BBA is a leading global aviation services and aftermarket support provider. Prior to joining BBA, Mr. Stubbs served as CFO and Interim Chief Executive Officer for then NASDAQ-listed CallWave, Inc., a global provider of enhanced telecommunications software and services. Mr. Stubbs also served as CFO of Sound ID, a privately held consumer electronics company. Mr. Stubbs has held a number of executive positions including Vice President Global Supply Chain and VP and Managing Director Europe, Middle East and Africa at Somera, which was a publicly traded, leading global provider of telecommunications infrastructure and services. Mr. Stubbs has held a number of financial management positions at Kinko’s (acquired by NYSE-listed FedEx). He earned his B.A. in Finance and his MBA from Cal Poly San Luis Obispo. Mr. Stubbs is a Certified Public Account.

DON DICKSON Independent Director

Mr. Dickson returned to Kinder Morgan after working for the company in their natural gas operations for 26 years during which time he served in various capacities including Director of Operations on two major pipeline projects: the 42” Rockies Mountain Express (REX) and the 42” Midcontinent Express Pipeline (MEP). In between his stints at Kinder Morgan, Mr. Dixon served as Chief Executive Officer for Advanced Pipeline Services (APS), which provided a full range of services to the oil and gas industry including new pipeline and facilities construction, horizontal directional drilling and pipeline integrity/rehabilitation. He also was Director of Operations at Tetra Resources where he completed various onshore and offshore oil and gas wells. He also served as a Senior Engineer with Halliburton Services. Mr. Dickson earned his B.S. in Engineering from Oklahoma State University.