A Titan Opportunity in Oil
Few people know 65% of the oil that has been discovered in existing oil fields cannot be recovered using existing technology. That’s some 6.2 trillion barrels of trapped oil. Simple math tells us $180 trillion worth of oil is sitting in fields we know about but don’t have the ability to bring to surface. Until now.
How would you like to invest in a company that has an enhanced recovery process that has averaged a 92% increase in production of oil after over three hundred applications in forty-eight different oil fields on four continents?
In a paper published in the Society of Petroleum Engineers application of the Titan Process resulted in increases of 225%, 450%, 100% and 533% in wells owned by Husky Oil in Southern Saskatchewan. In a 2012 Rice Alliance Technology Forum in Houston, Texas 300 energy experts voted the Titan Oil Recovery Process as the “Most Promising New Technology.”
The best quote I can find about the process came from Dr. Alan Heeger, Nobel Prize winner for Chemistry. He said, “Titan’s break through technology works… I am impressed with the results… remarkable consistency.”
I bought shares in Titan Oil Recovery years back. Ken Gerbino is the founder and Chairman of the company. Ken is one of our favorite authors and we have published dozens of articles by him. Other than the fact that he’s either too lazy or too busy to write for us lately, he’s a great writer.
The Titan Process is pretty simple to understand. A suitable field must have water flood wells. That means water is being injected or reinjected into the field. It comes under MEOR.
A sample is taken of the oil and water and tested for microbes by the Titan scientists. There are specific microbes that Titan wants to see. Titan prepares a breakfast for those specific microbes to encourage their growth. Those critters do two things. They create micro oil droplets that can easily flow through the tiny spaces in the structure of a reservoir and they also reduce the surface tension of the oil so more oil is released in the fields where the Titan Process is used.
There are a variety of expensive processes ($20-50 per barrel) to increase oil recovery. The Titan Process is by far the cheapest costing between $5 and $10 per barrel of incremental oil. The lower the price of oil goes, the more valuable the Process.
Titan wants to raise as much as $25 million to acquire oil fields. There has been $32 million spent on both R&D and commercial operations to date. Now Titan wants to buy fields for themselves while distressed banks are giving them away. Titan needs at least $6.5 million to get started. They would buy existing production with 50% cash and 50% loans.
The remaining information is for accredited investors only. Titan is a private company and until they go public, ordinary punters can’t buy shares. Due to a change in the SEC regulations, it’s now legal for companies to advertise Private Placements.
Titan wants to offer a Private Placement to raise up to $25 million with $6.5 million as a lower limit. They will issue preferred shares at $1 apiece with a special preference (a liquidation preference) for the investors, using the value of the properties to act as collateral for the investment.
With only a 30% increase in production as opposed to the average real increase of 92% Titan intends to distribute a dividend of 10-15% annually and projects returns of 6-20 fold. In addition, Titan has two “spinoff” companies, Petro Life Energy and Petro North Sea. Investors in the Preferred shares will also receive 50% of the number of shares they buy in the Private Placement in Petro Life Energy and Petro North Sea in the same way existing Titan shareholders have. Those companies will operate in other areas.
The Titan Process is something that should have taken off several years ago. But if you think the guys running gold and silver companies are idiots, you need to deal with the fools running oil companies. They are utter dinosaurs incapable of making real decisions. They proceed at the traveling speed of maple syrup in the Yukon in winter on a level slope.
But the banks are in deep trouble in Houston land with hundreds of suitable oil fields on the chopping block. Now is the time to take action. Oil could well go lower but those fields using the Titan Process are going to be the most profitable, not the least. Six months of real results that you could take into any bank in Houston would mean the banks would be falling all over themselves to give you oil fields on the cheap.
Titan is not paying for this piece. I am a serious investor in the company and have been for years. I expect Titan and the “sister companies” to be advertisers down the road so you do need to realize I’ve got a dog in the fight and will benefit from their success. Just because I am an investor doesn’t mean necessarily that it’s suitable for you. I am as biased as I can be.
If you are an accredited investor and have a potential interest in the Titan Process, you should contact Ken Gerbino, the Chairman of the Board via: