luca technologies overview
TRANSCRIPT
Wyoming Infrastructure AuthorityCompany Overview – Brian J. CreeFebruary 1, 2011
500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344Proprietary & Confidential
500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
A New Natural Gas Business
Proprietary & Confidential
Biotech Industry
Clean, environmentally
friendly, sustainable source of energy
Oil & Gas Industry
Luca Technologies Inc.
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
• 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 PartnersKleiner PerkinsOxford BiosciencesBASF
– 35 years in the energy industry with experience in field operations and management of both public and private energy companies including CEO of Milagro Exploration LLC and Chairman, President and CEO of Mission Resources
– 25 years experience in the energy, finance, and technology industries with both public and private companies including CFO, COO and EVP roles at Gerrity and Patina Oil & Gas Corporation
Robert Cavnar
President/CEO
Brian Cree
COO/CFO
William Mahaffey, PhD
CSO
– 30 years experience related to biodegradation and biotechnology applications to environmental and alternative energy production
– PhD in Microbial Biochemistry from the University of Texas
Roland DeBruyn
Founder, VP – Engineering Services
– 30 years experience in the oil & gas industry– BS in Chemical Engineering from University of Calgary; MBA from University of Phoenix
Jeffrey Weber
Founder, VP - Geosciences
– 35 years experience in the oil & gas industry– BS in Geophysics from Texas A&M; Certified Professional Geologist
R. Verlin Dannar
Founder, VP – Field Operations
– 35 years of field operations experience, including working for small and large oil and gas companies and managing his own consulting firm
Matt Micheli, JD
Corporate Counsel
– 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.
Executive Management
Transforming the Natural Gas Industry
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Beginning the move from hunting and gathering coal, oil and natural gas to the farming of methane with new
biotechnologies
Luca Business Principles
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
• 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 interrupts microbial process
– Water is critical element
APPALACHIAN
BASIN
MICHIGAN
BASIN
ILLINOIS
BASIN
BLACK WARRIOR
BASIN
NORTH LOUISIANA SALT BASIN
EAST TEXAS
SALT
BASIN
FT. WORTH
BASINTATUM
BASINMIDLAND
BASIN
PALO DURO
BASIN
TUCUMCARI
BASIN
ANADARKO
BASIN
SEDGWICK
BASIN
SALINA
BASIN
WILLISTON
BASIN
WIND RIVER
BASIN
BIG HORN
BASIN
POWDER RIVER BASIN
Golden – JULESBERG
RATON
BASINSAN JUAN BASIN
BLACK MESA
BASIN
PARADOX
BASIN
PICEANCE
BASIN
UINTA BASIN
KAIPAROWITS
BASIN
GREEN RIVER BASIN
WASHAKIE BASIN
BASIN
FOREST CITY
BASIN
ARKOMA
BASIN
MISSISSIPPI
SALT
BASIN
VALVERDE
BASIN
DELAWARE
BASIN
SOUTH
FLORIDA
BASIN
GREAT
BASIN
EEL
RIVER
BASIN
POINT
ARENA
BASIN
SANTA
CRUZ
BASIN
SANTA
MARIA
BASIN
SALINAS
BASIN
CUYAMA
BASIN
SAN
JOAQUIN
BASIN
SACREMENTO
BASIN
MAVERICK
BASIN
SABINAS
BASIN
BURGOS
BASIN
SOUTH TEXAS
SALT
BASIN
HOUSTON
EMBAYMENT
SALT
BASIN
SOUTH
LOUISIANA
SALT
BASIN
WESTERN
CANADIAN
SEDIMENTARY
BASINS
CHEROKEE
BASIN
S. Africa
Germany
LUCA FIELD EVENTSSampled and Lab Tests
February, 2010
Field Projects
• 37 Fields Sampled
• 15 Geobioreactor Discoveries
Proprietary & Confidential 500 Corporate Circle, Unit C, Golden, Colorado 80401
Powder River Basin
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Total CBM Biogenic Gas Production:
3-4 TCF
CBM Biogenic Gas Resource:
30 TCFMT
WY
NE
SDND
SD
Big
Horn
Uplift
Bla
ck H
ills
Uplift
0 50
Miles
30,000 CBM Wells
CBM Gas Wells
Size of the Resource Opportunity
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
PRB COAL MICROBIAL SUBSTRATE RESOURCE
0100020003000400050006000700080009000
10000
PRB CBMResource
Total U.S. Gas PRB CoalMicrobialSubstrateResource
TCF
Resource
Luca Technologies Inc.
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Anaerobic Experimental Setup
Experimental Bottle PRB Coal Core
Laying Down Core
Surface
Temporary Nutrient Delivery System
Proprietary mixture of amendments
gravity fed into coal seam
©2004 Luca Technologies 500 Corporate Circle, Suite C Golden, CO 80401 303.534.4344Proprietary & Confidential Luca Technologies Inc. 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Luca Process - Biogenic Gas Creation
Proprietary & Confidential 500 Corporate Circle, Unit C, Golden, Colorado 80401
“Dewatered”
“Watered” Coal Seam
Production Stage
SurfaceGas Sold
Gas Sold
©2004 Luca Technologies 500 Corporate Circle, Suite C Golden, CO 80401 303.534.4344Proprietary & Confidential Luca Technologies Inc. 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Coal Seam
Proprietary & Confidential 500 Corporate Circle, Unit C, Golden, Colorado 80401
Water reused in an untreated
well
Treatment Mixing & Delivery
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Restoration Success
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
• 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
Technology Development Growth Curve
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
Production; more detailed research; transition to green fields
Applying knowledge to 2nd generation projects
Learning: 2010-2011 Program
Gas Production Per Day, Per 80 Acre Spacing Unit
Business Model
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
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 technology• Revenue source: License fee and royalties on new gas
Intellectual Property
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
• 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
Luca Value Proposition
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344
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
WYIA Board Meeting
Proprietary & Confidential 500 Corporate Circle, Suite C, Golden, CO 80401 303.534.4344