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Oil & Gas Business Plan Template

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Trading Business Plan

Published Mar.29, 2024

Updated May.04, 2024

By: Alex Silensky

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Table of Content

According to a report, 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. This is primarily due to inadequate planning and undercapitalization. A well-crafted trading business plan can help you avoid these pitfalls, and this article will guide you.

In this article, you’ll learn:

• The current trends and growth forecasts in the stock trading industry
• A breakdown of the costs involved in starting a trading company
• The key components of a trading business plan (with a trading business plan example)
• Strategies for securing funding and overcoming the barriers to entry

By the end of this article, you’ll understand what it takes to create a business plan for an investment company , positioning your trading business for long-term success in this lucrative but highly competitive industry.

Pros and Cons of Trading Company

Let’s explore the pros and cons associated with running a trading company before diving into the specifics of a trading site business plan. Understanding them will help you make informed decisions:

• Potential for significant profits.
• Flexibility in terms of time and location.
• Opportunity for continuous learning and skill development.
• High risk due to market volatility.
• Emotional stress and psychological pressure.
• Requirement for constant vigilance and discipline.

Trading Industry Trends

Industry size and growth forecast.

According to a report , the global stock trading and investing applications market size was at around $37.27 billion in 2022 and projects to grow at a CAGR of 18.3% from 2023 to 2030 (Source: Grand View Research). The following factors drive this growth:

• Increasing internet penetration
• Rising disposable income
• Growing awareness of investment opportunities.

(Image Source: Grand View Research)

The Services

As per our private equity firm business plan , a stock trading business offers various services, including:

• Facilitating Trades on behalf of clients
• Algorithmic trading services to automatically execute trades
• Market Insights (research reports, market analysis, and economic forecasts)
• Technical and Fundamental Analysis (price charts, historical data, and company fundamentals)
• Investment Recommendations
• Seminars and Webinars
• Online Courses
• Demo Accounts
• Portfolio Diversification
• Stop-Loss Orders
• Hedging Strategies
• Direct Market Access (DMA)
• Global Market Access
• Trading Platforms
• Mobile Apps
• High-Frequency Trading (HFT)
• Legal and Compliance Services
• Educate clients about Risk Disclosure

How Much Does It Cost to Start a Trading Company

According to Starter Story, you can expect to spend an average of $12,272 for a stock trading business. Some key startup costs include:

How Much Can You Earn from a Trading Business?

Earnings in the trading business can vary significantly and depend heavily on:

• Trading strategy and approach
• Market conditions and volatility
• Risk management techniques
• Capital allocation and leverage

While specific income figures are difficult to predict due to these factors. However, here are some statistics showing the earning potential of a stock trading business:

• According to Investopedia, only around 5% to 20% of day traders consistently make money.
• According to Indeed Salaries, the average base salary for a stock trader in the U.S. is $80,086 per year.
• 72% of day traders ended the year with financial losses, according to FINRA.
• Among proprietary traders, only 16% were profitable, with just 3% earning over $50,000. (Source: Quantified Strategies)

What Barriers to Entry Are There to Start a Trading Company

Barriers to entry into the stock trading business include:

• Regulatory Requirements: Obtaining necessary licenses and registrations from governing bodies like the SEC and FINRA is a complex and time-consuming process.
• Capital Requirements: Trading activities require significant capital to manage risks and leverage opportunities, which can be a substantial challenge for new or small firms.
• Technological Expertise: Developing or acquiring sophisticated trading platforms, algorithms, and data analysis tools is costly and requires specialized expertise.
• Market Knowledge and Experience: Gaining in-depth knowledge and practical experience in the complex and dynamic financial markets takes years of dedicated study.
• Competitive Landscape: Breaking into the highly competitive trading industry dominated by established firms and well-funded proprietary trading desks is challenging for new entrants.

You can overcome these barriers by developing unique strategies, leveraging innovative technologies, and offering competitive and specialized services to differentiate yourself in the market. Do check our financial advisor business plan to learn more.

Creating a Trading Business Plan

A well-researched stock trading business plan is crucial to start a trading business. A general trading company business plan is a comprehensive document that defines your goals, strategies, and the steps needed to achieve them. It helps you stay organized and focused and increases your chances of securing funding if you plan to seek investors or loans.

Steps to Write a Trading Business Plan

You can use a business plan template for a trading company or follow these steps to prepare a business plan for a personal trading business:

Step 1: Define Your Goals and Investment Objectives

Step 2: Conduct Market Research

Step 3: Develop Your Trading Strategy

Step 4: Establish Your Business Structure

Step 5: Develop a Financial Plan

Step 6: Outline Your Operational Procedures

Step 7: Create a Marketing and Growth Strategy

Step 8: Implement Risk Management

Step 9: Create an Exit Strategy

What to Include in Your Trading Business Plan

Executive summary, company overview.

• Market Analysis
• Trading Strategy and Risk Management
• Operations and Technology
• Financial Projections
• Management and Organization
• Appendices (e.g., research, charts, legal documents)

Here’s an online trading business plan sample of ABC Trading:

ABC Trading, a recently established stock trading firm, provides online trading services to individuals and institutional investors. Key highlights of our business include:

• Vision – Becoming a leading online trading platform with a wide range of trading products and services.
• Values – Our core focus is innovation, excellence, integrity, and customer satisfaction.
• Target market – Tech-savvy and risk-tolerant investors looking for alternative ways to invest their money and diversify their portfolios.
• Revenue model – Commissions and fees for each trade, as well as subscription fees for premium features and services.
• Financial goal – Break even in the second year of operation and generate a net profit of $1.2 million in the third year.

ABC Trading is seeking $500,000 seed funding to launch its platform, acquire customers, and expand its team.

Company Name: ABC Trading

Founding Date: January 2024

Location: Delaware, USA

Registration: Limited Liability Company (LLC) in the state of New York

Regulated By: Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)

Our team comprises seasoned professionals with diverse finance, mathematics, computer science, and engineering backgrounds.

Marketing Plan

Marketing Strategy: We aim to leverage online channels, such as social media, blogs, podcasts, webinars, and email newsletters, to create awareness, generate leads, and convert prospects into customers.

Marketing Objectives:

• Reach 100,000 potential customers in the first year of operation
• Achieve a 10% conversion rate from leads to customers
• Retain 80% of customers in the first year and increase customer lifetime value by 20% in the second year

The customer profile of ABC Trading includes the following characteristics:

• Age: 25-65 years old
• Gender: Male and female
• Income: Above $100,000 per year
• Education: Bachelor’s degree or higher
• Occupation: Professionals, entrepreneurs, executives, or retirees
• Location: US or international
• Trading experience: Intermediate to advanced
• Trading goals: Income generation, capital appreciation, risk diversification, or portfolio optimization
• Trading preferences: Stocks, options, or both
• Trading style: Technical, trend following, or volatility trading
• Trading frequency: Daily, weekly, or monthly
• Trading risk: Low, medium, or high

Marketing Tactics:

• Create and distribute engaging and informative content on social media platforms
• Offer free trials, discounts, referrals, and loyalty programs
• Collect and analyze customer feedback and data to improve and personalize the customer experience
• Partner with influencers, experts, and media outlets in the trading and finance niche

Marketing Budget:

We will allocate $10,000 for our marketing campaign, which we will use for the following purposes:

Operations Plan

ABC Trading’s operations plan ensures the smooth and efficient functioning of the company’s platform and services and compliance with the relevant laws and regulations.

Operation Objectives:

• Maintain a 99% uptime and availability of the company’s platform and services
• Ensure the security and privacy of the company’s and customers’ data and funds
• Provide timely and professional customer support and service

Operation Tactics:

• Use cloud-based servers and services
• Implement encryption, authentication, and backup systems
• Hire and train qualified and experienced customer service representatives and technicians
• Monitor and update the company’s platform and services regularly
• Follow the best practices and standards of the industry and adhere to the applicable laws and regulations

Operation Standards:

Financial Plan

ABC Trading’s financial plan is to provide a realistic and detailed projection of the company’s income, expenses, and cash flow for the next three years, as well as the key financial indicators and assumptions that support the projection.

Financial Objectives:

• Achieve a positive cash flow in the second year of operation.
• Reach a break-even point in the second year of operation.
• Generate a net profit of $1.2 million in the third year of operation.
• Maintain a healthy financial ratio of current assets to current liabilities of at least 2:1.

Financial Assumptions:

• Launch its platform and services in the first quarter of 2024
• Acquire 10,000 customers in the first year, 20,000 customers in the second year, and 30,000 customers in the third year
• Average revenue per customer will be $50 per month, based on the average number and size of trades and the subscription fees
• Average operating expense per customer will be $10 per month, based on the average cost of salaries, rent, utilities, marketing, and legal fees
• Pay a 25% tax rate on its net income
• Reinvest 50% of its net income into the company’s growth and development

Projected Income Statement:

Projected Cash Flow Statement

Projected Balance Sheet

Fund a Trading Company

To successfully establish and operate a trading company, raising funds to finance daily operations and business expansion is crucial. There are different ways with their advantages and disadvantages:

1. Self-funding (Bootstrapping)

Self-funding, also known as bootstrapping, is when the founder or owner of the trading company uses their own personal savings, family business ideas , assets, or income to finance the business. This is the most common and simplest way to fund a trading company, especially in the early stages.

• Complete ownership and control
• Flexibility in decision-making
• Potential for higher long-term returns
• Limited access to capital
• Personal financial risk
• Slower growth potential

2. Debt Financing

Debt financing involves borrowing money from lenders, such as banks, credit unions, or microfinance institutions, to fund the trading company’s operations. The borrowed funds must be repaid with interest over a specified period.

• Retain ownership and control
• Potential tax benefits from interest deductions
• Disciplined approach due to repayment obligations
• Debt burden and interest payments
• Collateral requirements and personal guarantees
• Difficulty in securing financing for startups

3. Angel Investors

Angel investors are wealthy individuals who invest their own money into early-stage or high-potential trading companies in exchange for equity or convertible debt. Angel investors typically provide smaller funding than venture capitalists and offer mentorship, guidance, and access to their network.

• Access to capital and industry expertise
• Potential for additional mentorship and guidance
• Lower risk compared to traditional investors
• Dilution of ownership and control
• Potential for conflicting visions and expectations
• Limited resources compared to larger investors

4. Venture Capital (VC) Funding

Venture capital firms are professional investment firms that provide capital to high-growth startups in exchange for equity ownership. They typically invest large sums of money and are active in the company’s management and strategic direction.

• Access to substantial capital for growth
• Expertise and industry connections from the VC firm
• Validation and credibility for the business
• Significant dilution of ownership and control
• Intense pressure for rapid growth and return on investment

Depending on your business model, goals, and needs, you may also consider other options, such as grants, subsidies, partnerships, etc. Ensure to check for relevant documents, like the hedge fund private placement memorandum . The best way to fund your trading company is the one that suits your situation and preferences.

OGSCapital: Your Strategic Partner for Business Success

At OGSCapital, we specialize in professional business plans that empower startups, established companies, and visionary entrepreneurs. With over 15 years of experience, our seasoned team combines financial acumen, industry insights, and strategic thinking to craft comprehensive plans tailored to your unique vision. Whether you’re seeking funding, launching a new venture, or optimizing your existing business, we’ve got you covered.

If you have any further questions regarding how to write a business plan for your trading business, feel free to contact us. Our team at OGSCapital is here to support you on your entrepreneurial journey. You can also check our hedge fund business plan sample here.

Download Trading Business Plan Template in PDF

Frequently Asked Questions

What does a trading business include?

A trading business involves trading stocks and other financial instruments under a legal business structure. It includes:

• Market analysis
• Trading strategy
• Risk management

How does a trading company work?

A stock trading company facilitates the buying and selling of stocks (shares) on behalf of investors. These companies operate within stock exchanges, executing trades based on specific trading strategies.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Sample Oil and Gas Business Plan

This article will be providing you with an oil and gas business plan guide or template.

The energy sector of every economy is huge and offers enormous investment opportunities. Whatever your niche area or interests are, starting a business can be very challenging.

However, having a plan makes the process a lot less difficult and helps with better coordination.

Here, we aim to help entrepreneurs who, though being experienced in the oil and gas sector have no idea how to launch their business operations.

OIL AND GAS BUSINESS PLAN SAMPLE

To better organize your plan, there are basic sections that cannot be left out. They touch on the different aspects of running a successful oil and gas business.

They include the executive summary, the company description, and the products & services sections.

Other crucial sections include the market analysis section, strategy & implementation, organization & management team as well as the financial plan & projections sections.

So, how do you develop each of these sections? You’ll want to read on to find out.

i. Executive Summary

As the introductory section of your plan, the executive summary gives a concise overview of your oil and gas business plan. What you should seek to do with this section is make and keep your audience interested by learning about your business.

The basics about your company should be known here.

The executive section always appears first in a plan. While this is true, it should be written last. The reason is this; it should capture all the key aspects of the business plan.

Consider adding certain sections like your business name & location, your services & products as well as your mission & vision statements. Also, the specific purpose of your plan should be added.

Business Name & Location

One of the first things you’ll need to include in your business name as well as its location. Introducing your business is paramount and gives your reader or a starting point on what the business is about.

How does your location positively impact your operations?

Services & Products

Here, you’ll need to give a breakdown of your oil and gas products and services . What specific niche area you involved with and how are your products and services beneficial to your clients.

People only pay for value and you should briefly discuss what value your services offer to your clients.

Mission & Vision Statements

The mission and vision statements of your oil and gas business should shed light on your company’s purposes, goals and values. Your mission statement should tell about why the business exists as well as the purpose it serves.

Also include information on what your business offers.

You should focus on what you seek to ultimately achieve with your oil and gas business for the mission statement. In a nutshell, the vision statement gives purpose to the existence of your business.

It’s important when writing this statement to never leave anything open to interpretation.

Specific Purpose

Every serious business has a purpose. What’s yours about? By clarifying your purpose or aims, your chances of achieving your goals are increased.

ii. Company Description

The company description section seeks to further reveal details about your oil and gas business. Basically, you want to explain who you are, your mode of operation as well as the goals you wish to achieve.

Details to be included are the legal structure of the company, as well as its brief history.

Being an oil & gas business, you’ll have to provide details on the needs or demands you intend to fill or meet.

The company description should give an overview of your services & products while also identifying your target market and your suppliers.

Also, include a summary of company growth backed by financial or market highlights.

Of course, this won’t be complete without a summary of your long and short-term goals including how you intend to make a profit.

iii. Products & Services

While this was covered in the executive summary section, only a summary of it was given.

This section takes a more detailed look at the products and services being offered by your oil & gas business with a focus on the benefits being derived by customers.

Here, you’ll also need to explain the market role of such products & services.

What edge or competitive advantages do your products & services have over those from competitors. Are there new products in the works? Provide information on such.

Here is a sample plan on crude oil refining .

iv. Market Analysis

A lot of work in the form of research is required to demonstrate your understanding of the oil and gas industry.

Your research should provide a detailed sketch of your target market with a focus on key aspects such as its size and demographics.

Have an industry description and outlook with statistics serving as proof. What more? There should be historical, current, and projected marketing data for your oil and gas business.

Also, include an evaluation of your competitors with a special focus on their weaknesses and strengths.

v. Strategy & Implementation

Strategy and implementation have a lot to do with sales and marketing. This is basically an operating plan on how you wish to sell and distribute your oil & gas products and services.

It focuses on market entry, pricing, costs, promotion, and distribution details.

What are your operational plans in regards to the operational cycle of the business? You also want to include information on labor sources as well as the number of employees you’ll need.

vi. Organization & Management Team

The organization & management team section discusses the organizational structure of the oil and gas business.

You want to provide a description of key departments as well as employees by providing an organizational chart.

There should be information about the owners, their level of involvement as well as percentage ownership. Also, profiles of your management team will be necessary.

vii. Financial Plan & Projections

Under the financial plan & projections section, you’ll need some expert help. The services of a professional accountant will suffice.

The key areas analyzed under this section include the historical financial data, realistic prospective financial information, and brief analysis of financial data.

With these points covered, your oil and gas business plan should be ready for implementation. You also stand the chance of getting the much-deserved financing required.

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Hi dear , Iam from Papua New Guinea,Alotau Milne Bay Province. Papua New Guinea. Iam a Tradesmen, Heavy Diesel Fitter and Maintenance Fitter Machinist. Former Mechanical Maintenance Engineer for BHP STEEL and Ok Tedi Mining LTD Mill Maintenance Rebuildshop. Iam urgently seeking for any mechanical Fitter jobs in Australian Oil Rig Drilling companies and Mining. Any other farming jobs suits my qualifications. Thank you very much for your time and kind assistance. I wait patiently to hear from you soon.

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1. Learn What Moves Crude Oil

2. understand the crowd.

• 3. Choose Between Brent and WTI

4. Read the Long-Term Chart

• 5. Pick Your Venue

The Bottom Line

• Commodities

5 Steps to Making a Profit in Crude Oil Trading

Crude oil trading offers excellent opportunities to profit in nearly all market conditions due to its unique standing within the world’s economic and political systems. Also, energy sector volatility has risen sharply in recent years, ensuring strong trends that can produce consistent returns for short-term swing trades and long-term timing strategies.

Market participants often fail to take full advantage of crude oil fluctuations, either because they haven't learned the unique characteristics of these markets or because they're unaware of the hidden pitfalls that can eat into earnings. In addition, not all energy-focused financial instruments are created equally, with a subset of these securities more likely to produce positive results. 

Key Takeaways

• If you want to play the oil markets, this important commodity can provide a highly liquid asset class with which to trade several strategies.
• First, decide what is appropriate for you: a spot oil (and if so what grade); a derivative product such as futures or options; or an exchange-trade product like an ETN or ETF.
• Then focus on the oil market fundamentals and what drives supply and demand, as well as technical indicators gleaned from charts.

Here are five steps needed to make a consistent profit in the markets.

Crude oil moves through perceptions of supply and demand , affected by worldwide output as well as global economic prosperity. Oversupply and shrinking demand encourage traders to sell crude oil markets, while rising demand and declining or flat production encourages traders to bid crude oil higher.

Tight convergence between positive elements can produce powerful uptrends, like the surge of crude oil to $145.31 per barrel in July 2008, while tight convergence between negative elements can create equally powerful downtrends, like the August 2015 collapse to $37.75 per barrel.   Price action tends to build narrow trading ranges when crude oil reacts to mixed conditions, with sideways action often persisting for years at a time.

Professional traders and hedgers dominate the energy futures markets , with industry players taking positions to offset physical exposure while hedge funds speculate on long- and short-term direction. Retail traders and investors exert less influence here than in more emotional markets, like precious metals or high beta growth stocks.

Retail's influence rises when crude oil trends sharply, attracting capital from small players who are drawn into these markets by front-page headlines and table-pounding talking heads. The subsequent waves of greed and fear can intensify underlying trend momentum , contributing to historic climaxes and collapses that print exceptionally high volume.

3. Choose Between Brent and WTI Crude Oil

Crude oil trades through two primary markets, West Texas Intermediate Crude and Brent Crude . WTI originates in the U.S. Permian Basin and other local sources while Brent comes from more than a dozen fields in the North Atlantic. These varieties contain different sulfur content and API gravity, with lower levels commonly called light sweet crude oil.  Brent has become a better indicator of worldwide pricing in recent years, although WTI in 2017 was more heavily traded in the world futures markets (after two years of Brent volume leadership).

Pricing between these grades stayed within a narrow band for years, but that came to an end in 2010 when the two markets diverged sharply due to a rapidly changing supply versus demand environment. The rise of U.S. oil production, driven by shale and fracking technology, increased WTI output at the same time Brent drilling underwent a rapid decrease.

U.S. law dating back to the Arab oil embargo  in the 1970s aggravated this division, prohibiting local oil companies from selling their inventory in overseas markets. This ban was removed in 2015.  

Many of CME Group's New York Mercantile Exchange (NYMEX) futures contracts track the WTI benchmark, with the "CL" ticker attracting significant daily volume.   The majority of futures traders can focus exclusively on this contract and its many derivatives. Exchange-traded funds (ETFs) and exchange-traded notes (ETNs) offer equity access to crude oil, but their mathematical construction generates significant limitations due to contango and backwardation .

WTI crude oil rose after World War II, peaking in the upper $20s and entering a narrow band until the embargo in the 1970s triggered a parabolic rally to $120. It peaked late in the decade and began a torturous decline, dropping into the teens ahead of the new millennium. Crude oil entered a new and powerful uptrend in 1999, rising to an all-time high at $157.73 in June 2008. It then dropped into a massive trading range between that level and the upper $20s, settling around $55 at the end of 2017. As of January 2021, it was trading at about $47.  

5. Pick Your Venue

The NYMEX WTI Light Sweet Crude Oil futures contract (CL) trades in excess of 10 million contracts per month, offering superb liquidity . However, it has a relatively high risk due to the 1,000 barrel contract unit and .01 per barrel minimum price fluctuation.   There are dozens of other energy-based products offered through NYMEX, with the vast majority attracting professional speculators but few private traders or investors.

The U.S. Oil Fund offers the most popular way to play crude oil through equities, posting average daily volume in excess of 20-million shares. This security tracks WTI futures but is vulnerable to contango, due to discrepancies between front month and longer-dated contracts that reduce the size of price extensions.  

Oil companies and sector funds offer diverse industry exposure, with production, exploration, and oil service operations presenting different trends and opportunities. While the majority of companies track general crude oil trends, they can diverge sharply for long periods. These counter-swings often occur when equity markets are trending sharply, with rallies or selloffs triggering cross-market correlation that promotes lockstep behavior between diverse sectors.

Some of the largest U.S. oil company funds are:

• SPDR Energy Select Sector Fund ( XLE )  
• SPDR S&P Oil & Gas Exploration and Production ETF ( XOP )  
• VanEck Vectors Oil Services ETF ( OIH )  
• iShares U.S. Energy ETF ( IYE )  
• Vanguard Energy ETF ( VDE )  

Reserve currencies offer an excellent way to take long-term crude oil exposure, with the economies of many nations leveraged closely to their energy resources. U.S. dollar crosses with Columbian and Mexican pesos, under tickers USD/COP and USD/MXN, have been tracking crude oil for years, offering speculators highly liquid and easily scaled access to uptrends and downtrends. Bearish crude oil positions require buying these crosses while bullish positions require selling them short.

Trading in crude oil and energy markets requires exceptional skill sets to build consistent profits. Market players looking to trade crude oil futures and its numerous derivatives need to learn what moves the commodity, the nature of the prevailing crowd, the long-term price history, and physical variations between different grades.

Federal Reserve Bank of St. Louis. " Crude Oil Prices: West Texas Intermediate ."

U.S. Government Accountability Office. " Effects of the Repeal of the Crude Oil Export Ban ."

CME Group. " Welcome to NYMEX WTI Light Sweet Crude Oil Futures ."

USCF Investments. " United States Oil Fund ."

State Street Global Advisors. " The Energy Select Sector SPDR Fund ."

State Street Global Advisors. " SPDR S&P Oil & Gas Exploration & Production ETF ."

VanEck. " VanEck Vectors Oil Services ETF ."

iShares by BlackRock. " iShares U.S. Energy ETF ."

Vanguard. " Vanguard Energy ETF ."

• Guide to Investing in Oil Markets 1 of 20
• What Is Crude Oil, and Why Is It Important to Investors? 2 of 20
• How to Invest in Oil 3 of 20
• 5 Steps to Making a Profit in Crude Oil Trading 4 of 20
• Should You Invest in Oil and Gas Companies? Consider These 3 Risks 5 of 20
• How the Oil and Gas Industry Works 6 of 20
• The Effect of Crude Inventories on the Oil Economy 7 of 20
• How to Buy Crude Oil Options 8 of 20
• Understanding Oil Firms And Refinery Services 9 of 20
• What Determines Oil Prices? 10 of 20
• Top Factors That Affect the Price of Oil 11 of 20
• OPEC vs. the US: Who Controls Oil Prices? 12 of 20
• OPEC’s Influence on Global Oil Prices 13 of 20
• Do Oil and Natural Gas Prices Rise and Fall Together? 14 of 20
• What Is the Relationship Between Oil Prices and Inflation? 15 of 20
• How Oil Prices Impact the U.S. Economy 16 of 20
• Is USO a Good Way to Invest in Oil? 17 of 20
• How Oil Prices Affect the Stock Market 18 of 20
• What Economic Indicators Do Oil and Gas Investors Need to Watch? 19 of 20
• What Economic Indicators are Especially Important to Oil Traders? 20 of 20

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We help oil and gas companies develop strategies to pursue growth and create value in an uncertain and volatile environment.

To prevail in current markets, successful businesses treat strategy development as a dynamic process. Commodity-price fundamentals are challenging in the short term, requiring executive teams to constantly reevaluate mid- to long-term expectations. As a result, companies in the oil and gas industry are confronting significant strategic challenges and complex decisions, daily.

To help our clients manage this complexity, we bring distinctive propositions to our advisory work, ranging from tools that target short-term cash and performance enhancements, to levers for enabling operating-model evolution, to proprietary market models that provide granular, rigorous supply-and-demand scenarios to support strategy planning and development. Our clients have access to more than 400 consultants with extensive experience in oil and gas strategy, a global network of industry experts and external advisers, and broad cross-sector expertise from our Strategy & Corporate Finance Practice .

Examples of our work

Employing our exploration portfolio tool, supporting production growth, identifying new energy segments, developing a gas master plan, providing perspectives on regulatory change, featured capabilities.

We invest heavily in developing proprietary tools, databases, and methods, including:

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How to Start an Oil and Gas Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Oil & Gas Industry

Are you interested in starting an oil and gas company? Do you need a sample oil and gas business plan template? Do you live in an oil rich region like Nigeria, Angola, Kuwait, United States, Saudi Arabia, Iraq, etc; and you want to legally tap into the lucrative business opportunities in the oil and gas industry ? If you answered YES to any of the questions above, then I advice you read on with keen interest.

The oil and gas industry is one of the most lucrative industries in any economy. In fact, it has created more billionaires in the world than any other industry. However, tapping into this money-spinning market requires huge startup costs, and this is why many entrepreneurs balk whenever they think about taking a plunge.

The process of starting an oil and gas company is more complicated than starting most other types of companies as the industry is strictly regulated locally and internationally. And getting the required startup funding could take time.

Oil and gas production is serious business, so you need to invest lots of money, time, and effort to succeed in the long term. This article explains some basic concepts in the oil and gas industry as well the steps involved in starting an oil and gas company.

Over the years, the oil and gas business has undergone various changes, and now, it has become a much-organized business. It comprises three sectors:

• The upstream sector
• The midstream sector
• The downstream sector

All the sectors are very lucrative, and each has its own fair share of market players. Are you wondering what these sectors mean? Here’s an explanation…

• The upstream sector entails oil prospecting and exploration, drilling for oil, and drawing it out of the ground. These activities are the earliest stages of oil production.
• The midstream sector entails transportation, storage, and wholesale marketing or crude or refined petroleum products. Activities in this sector are aimed at moving crude oil from the site where it is drawn to refineries where it will be processed into the various petroleum products.
• The downstream sector entails storage of petroleum products as well as transportation, marketing, and everything else that happens until the products finally get to consumers.

Although several products are made from crude oil, only four of them are in huge demand. These are:

• Petrol or gas (also called gasoline or PMS—premium motor spirit)
• Diesel (also called AGO–automotive gas oil)
• Kerosene (also called paraffin or DPK—dual-purpose kerosene)
• Cooking gas (also called LPG—liquefied petroleum gas).

The demand for these four products is high because they are widely used for everyday activities such as transport, domestic cooking, and so on. With the above in mind, let’s now look at the steps involved in starting an oil and gas company.

Starting an Oil and Gas Company – Sample Business Plan Template

1. define your business model.

You need to be clear from the outset as to whether you will be operating within the upstream, midstream, or downstream sector. To make a well-informed decision, you might need to gather more information about the requirements as well as the pros and cons of each and figure out which seems most suitable for you.

2. Market research

There is much more to learn and understand about the oil and gas industry than meets the eye. And since you are planning to join this market as a new player, you need to conduct extensive research to understand the intricacies of the market and pitfalls or challenges that new entrants are likely to encounter.

In addition, an extensive research of the market will help you know the required startup costs, required equipment, competition, strategies for success and other relevant information about the business.

3. Write your business plan

Every business needs a business plan. In fact, oil and gas businesses need it even more as it helps you plan the various phases of the business and increases your chances of success. Although developing your business plan is no guarantee of your business’s success, not having one is the recipe for failure.

Your business plan includes the goals and objectives of your business, required startup costs, operation plan and cost, market analysis and competition, projected income over the first few years, marketing strategy, unique selling point, exit strategy, and other vital information about your business.

Not only will your business plan guide you through the processes of starting and growing your business, but it will also come in handy when you need to procure startup funding from investors , venture capitalists, and loan-issuing institutions.

4. Fulfill the required paperwork

Starting an oil and gas business requires registering the business and obtaining business licenses and permits. These vary by state and country, so you need to contact the appropriate local agencies to find out what applies in your state or country. Other paperwork includes requesting a tax ID and obtaining insurance.

5. Find a good location

6. Buy and install the necessary equipment

7. Hire employees

8. Market your oil and gas business

We did not go into specific details regarding choosing a location, buying equipment, hiring employees, and marketing your business because how you will implement each of these steps depends on the sector of the oil and gas industry you have chosen to operate in.

For example, the ideal location, required equipment, and suitable employees for a company operating in the upstream sector will differ from those of a company operating within the downstream sector. Yet, this article is meant to be a brief guide, not a comprehensive resource on the topic.

To find out about the ideal location and required equipment for a company in your chosen sector, you will definitely need to consult other resources or contact an expert with years of experience in that sector.

Related Posts:

• 50 Best Oil and Gas Business ideas You Can Start Today
• How to Start a Kerosene Retail & Supply Company – Sample Business Plan Template
• How to Start a Crude Oil Brokerage Company – Sample Business Plan Template
• 5 Best Marketing Strategies for an Oil and Gas Company
• How to Start Diesel Supply Company – Sample Business Plan Template

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Oil and Gas Business Plan with Wise Business Plans

Corporate oil & gas business plan development.

The Oil and Gas Business Planning industry continues to make new strides in the United States in the oil and gas companies, and many small business owners are finding ways to leverage the booming industry to create their own success stories. However, it takes more than a smart idea to start your engine and race toward success in this competitive field of petroleum.

Post-Pandemic Recovery

During May 2020, the amount of gasoline supplied to the market increased to nearly 5.9 million barrels a day, up from 5.1 million in the first week of April but well below the typically more than 9 million before the pandemic. On the other hand, gasoline saw a normalizing demand at around 55%, which improved by 64% during mid-2020. Industry experts expect a slow but steady recovery during 2021, giving hope to the industry operators.

Key Components of Petroleum Business:

• The clarity in Products and Services- The COVID-19 crisis accelerates what was already shaping up to be one of the industry’s most transformative moments. The Wise Business Plans professionals take time to find out which pain point the product or service will be addressing and develop a business plan that accurately communicates it.
• Costing Strategy- The costs associated with embarking upon a business in the Oil and Gas business industry can be challenging, especially in the post-pandemic era.  On its current course and speed, the industry could now be entering an era defined by intense competition, technology-led rapid supply response, flat to declining demand, investor skepticism, and increasing public and government pressure regarding the impact on climate and the environment. However, under most scenarios, oil and gas will remain a multi-trillion-dollar market for decades. Given its role in supplying affordable energy, it is too important to fail. The question of how to create value in the next normal is therefore fundamental.
• Trends- Trends are major in all segments of the economy but especially in those that directly impact the atmosphere.  “Clients operating in this industry have to be aware of regulations, laws, and standards that are enacted by governing bodies.  Without this type of information their business models could suffer significant losses”, says Mr. Ferriolo.  “We do exhaustive, real-time research that protects the client and places them in the best possible position to succeed”, says Mr. Ferriolo.
• Innovation- The industry will need to dig deep and tap its proud history of bold structural moves, innovation, and safe and profitable operations in the toughest conditions to change the current paradigm. The winners will be those that use this crisis to boldly reposition their portfolios and transform their operating models. Companies that don’t will restructure or inevitably atrophy.

How To Get Into The Oil Business

In the oil and gas sector, starting your own company requires a lot of capital, time, and expertise. Even so, as this industry produces multi-millionaires and yields a higher ROI than in any other industry, all your troubles and efforts will be worthwhile.

You should focus on these things if you have previous experience in this area and want to know how to start an oil company.

1. Decide Where to Invest

You can have a filling station or you can drill your wells in the oil and gas industry. One can choose from a variety of options: a service company, a product company, or a company that cleans up oil spills.

It is important to determine your motivations and strengths before making any detrimental moves in this field. Getting a sense of the amount of capital needed can help you make the right choice.

2. Make an Oil and Gas Business Plan

You need to make a detailed oil & gas business plan and list all your resources and liabilities after deciding what you want to focus on. It is imperative to include all the projected operating expenses in your petroleum business plans, such as insurance, permits, licenses, salaries, and ongoing expenses.

A business plan for an oil and gas company will serve as a blueprint for your business. Your business plan will be a valuable tool if you are considering applying for a loan or wish to attract investors. In case you have no prior experience creating business plans , In case you have no prior experience creating business plans, you can hire us to assist you.

Do You Need Help in Creating a Business Plan?

If you need a business plan writer , you no longer have to worry about the complexities of writing a professional business plan. Our MBA-qualified business plan writers have written over 15000+ business plans for over 400 industries in over a decade.

Let our professional business plan writers help you get funding

3. Identify Your Investors

Once you’ve decided what type of oil business is right for you and calculated the loans and funding you’ll need, the next step is to make sure you can get a fair loan.

To run any company in this field, you will need a fair amount of capital from the very beginning, so you may have to consider finding investors. Don’t worry about the capital Here are 7 ways to raise capital for getting into the oil business:

• Self-Funding: If you look around, you may find the capital you need right in your own home. It may come from your already existing assets or savings. You retain full control of the business by providing the initial capital yourself. Angel investors and even single investors can influence the direction of a company.
• Crowdfunding: A method of raising money from a large number of people. Several people pool their small investments to raise the capital needed to launch a company or project. It’s a win-win situation for you. Currently, U.S. oil is the most popular commodity in the world.
• Angel Investor: Private or seed investors (also called angel investors) are high-net-worth individuals who provide financial support to small businesses in exchange for ownership equity. Furthermore, investors can also offer business advice. Particularly if they have oil and gas industry experience, this may be beneficial.
• Friends and Family: Friends and families are the second-largest sources of business capital in the U.S. A family member will be aware of your work history or management experience. It’s likely that they already know about the potential of your gas or oil share, and may even have helped to acquire it.
• Bank Loan: Getting a bank loan is probably the most traditional way to obtain start-up capital. As the bank wants to ensure that you can pay back the loan, you will likely be required to submit a lot of information during your initial application. Our experienced team has helped our clients raise millions in funding through banks (debt financing) and investors (debt/equity financing).
• Small Business Administration (SBA): Despite its long history, the SBA is still a useful source of funding . They offer federally guaranteed loans of up to $5 million to “small” businesses. Furthermore, you will receive the funding you require without compromising your oil and gas business plan. The loan will also likely have light terms and interest rates. SBA’s goal is to boost the economy. A small business loan is one of the easiest ways to get cash. With decades of experience in business credit and lending, Wise Business Plans is uniquely suited to help you. You are just 4 steps away from getting a small business loan .

Pro Tip: Here is a step by step guide on 5 best places to find a venture capitalist

Wise Business Plans has decades of experience in early-stage investments, so we will help you get your first venture capital investment .

Do You Need Investment?

4. check the regulations.

You should check all the relevant regulations, licenses, and permits , as well as your tax identification number, before starting an oil business. You may be aware of some of them from previous experience, but you should always consult a business or tax attorney when addressing legal issues.

Do You Need a License to operate an Oil and Gas Business?

Wise business plans have eased the process to obtain a business license, which is generally necessary to operate an oil and gas business.

Let Wise help you Get your License to operate an Oil and Gas Business

5. Form a Legal Entity

Those in the group will want to shield themselves from personal liability. You can form a limited liability company (LLC) or an S corporation. An LLC is a flexible entity with elements of both a partnership and a corporation. To simplify federal income tax matters, S corporations elect to pass income and losses on to shareholders.

Need to Register an Oil and Gas Business?

We at Wise Business Plans provide you with a wide range of business formation services for incorporating a company in a way that makes the process easy and allows you to stay focused on other important tasks. Our business formation services include

• Tax ID Number
• LLC Formation
• NonProfit Business Formation
• S Corporation Registration

You can form your business entity in just 4 Simple Steps with Wise Business Plans

Open a Business Bank and Get Credit Cards

Personal asset protection is enhanced when you open specialized business banking and credit accounts.

When your personal and professional accounts are mixed, your personal assets (your home, automobile, and other valuables) are vulnerable if your company is sued.

Furthermore, learning how to establish business credit may assist you in receiving credit cards and other financial resources in your company’s name (rather than yours), improved interest rates, greater lines of credit, and more.

6. Set up a Business Bank Account.

Apart from being a requirement when applying for business loans, establishing a business bank account has several benefits.

• Separates your personal belongings from your company’s assets, which is critical for personal asset protection.
• Makes tax preparation and accounting simple.
• It makes tracking expenses easier and more organized.

Recommended: To discover the greatest bank or credit union, read our Best Banks for Small Business review.

7. Open Net 30 Account

To establish and grow business credit, as well as improve company cash flow, net 30 payment terms are utilized. Businesses purchase products and pay off the whole amount within a 30-day period using a net 30 account.

Net 30 credit vendors are reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is the way businesses build business credit to qualify for credit cards and other lines of credit.

Recommended: Read our list of the top net 30 vendors guide to start getting business credit or simply open your net 30 account with wise business plans in seconds.

8. Get a Business Credit Card

It’s exciting to open a business credit card for your firm. A business credit card can assist you to establish credit, safeguard your company financially, access rewards (such as cashback), and simplify cash flow. It can also assist you to manage your expenditures.

Recommended: Learn more about the best business cards in our business credit card review.

9. Build a Great Team

When taking on such a venture, human capital plays a crucial role. You must determine how many employees you need to hire and whether they have enough experience and training to do their jobs well.

Here are some useful team-building tips which might help you in building your team.

10. Use Top-Notch Equipment

Make sure you use top-notch equipment to ensure and protect your business and investments. For those who work directly in the oil production sector, it is extremely important to ensure your piping, control, and measuring systems are all up-to-date.

If you plan to start a procurement and supply company, you should include quality general equipment, such as valves, pumps, and generators, along with personal safety equipment. By providing high-quality tubular to your customers, along with other drilling and wellhead equipment, you will stand out as a reliable and conscientious provider.

11. Choose an Exploration Site

Obtain county and/or state permits for drilling and land use. Execute a lease with the property owner and/or the owner of mineral rights once you determine which party owns the property and if there are no prior claims that might affect your exploration.

In case your seismic data indicates there could be a subsurface trap containing significant oil, drill multiple exploratory wells on the site. Provide all necessary supplies and equipment for well capping and storing oil in storage tanks prior to hiring a drilling company for this purpose. 

Ensure that you have a plan for containing and transporting any natural gas and oil that may be present in your site’s reservoirs. Roads may need to be built to access the site. Trailers or other structures are necessary for offices and living accommodations. Communication capabilities should also be available at the site.

Business Planning for the Oil & Gas Sector

Vigilance is more than ever needed in crafting a solid oil and gas business plan. Smart planning showing commitment and consistency in intentions will always win financiers’ confidence. As part of that strategy, we’ve identified several key components that every oil and gas startup business plan must address, including:

Luckily, a properly written oil and gas business plan is a key element to the process that can help your business raise the necessary capital to purchase equipment, hire staff, and cover operating expenses as you plan to enter the Oil and Gas industry .

Oil And Gas Business Plan Writing Services

Wise Business Plans has had the privilege and the opportunity to create oil and gas Companies that support business owners in this foundational industry, and we have worked hard to build up a knowledge base and the research skills needed to be the premier online provider of oil and gas business plans.

When you’re ready to jump into the action, we’d love to help you start strong and make a mark in the world of energy production, so contact us today to get started on planning your future success.

Download a sample oil and gas business plans template for FREE to get an idea of the basic elements of oil and gas startup business plan writing. Also, you can quickly check our FAQ page for some basic questions and answers.

Wise business plans also offer a net 30 account application . Net-30 accounts allow you 30 days to pay the bill in full after you have purchased products. Net 30 accounts can also make managing your business finances easier. Apply for your net 30 business accounts now

Need Nearest Business Plan Writing Services

Looking for a professional business plan writing services near me ? Contact us to achieve your company’s goals and get funded.

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Concord Sample Business Plan - Oil & Gas

Business Plan General Oil & Gas Inc.

Concord Business Plans

Business Plan

NOTICE – GENERAL OIL AND GAS The information presented in this document is highly sensitive and confidential and is to be used by authorized parties for the purpose of determining a preliminary indication of interest in General Oil and Gas (“the Company”). The recipient of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without the written permission of the Company. The Company and other sources provided the information contained in the Business Plan. It has been reviewed, approved, and released by the Company, which assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company and involve significant elements of subjective judgment and analysis and are based on certain assumptions. Actual results may vary from estimates and projections, and these variations may be material. No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct their own independent analysis and due diligence process. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

For additional information, contact:

Concord Business Plans 900 Burrard Street Suite 900 Vancouver, BC V7X 1M8 Canada Tel: (604) 689-2556 Fax: (604) 689-7758 Website: www.concordbusiness.com Email: [email protected]

General Oil and Gas Highlights Name General Oil and Gas Inc. Industry Financial, Venture Capital, Equity Financing Sector Oil & Gas Description General Oil and Gas will identify, target and acquire proven oil and gas properties in Alberta, Canada. Purpose To complete a Qualifying Transaction for a public listing on the TSXV To identify and acquire oil & gas assets of low risk and high potential in Alberta, Canada Competitive Advantages

A strategic acquisition target with proven oil & gas reserves 1 valued at $60 million and proven + probable reserves valued at $133 million by AJM Deloitte (based on the Net Present value before tax, discounted at 10%). Initial production can begin within 3 months for immediate cash flow results. An in-house evaluation completed in 2011 shows an estimated value of proven and probable reserves to be $245 million.

Capital Requirements Use of Proceeds

$ 60,000,000 Completion of strategic acquisition – ‘Qualifying Transaction’ General Oil and Gas will utilize funds to complete target acquisition and commence drilling on 5 target properties.

Chart 1: Financial Highlights

Gross Revenue Summary 70

Lavoie Resources

Falcon Dell

Sandhurst Lake

Gross Revenues

AJM Deloitte report released 2013.

TABLE OF CONTENTS 1 Executive Summary ........................................................................................... 1 1.1 Business of the Company ............................................................................................................................1 1.2 Company Strategy .......................................................................................................................................1 1.3 Primary Objectives ......................................................................................................................................1 1.4 Investment Criteria ......................................................................................................................................2 1.5 Target Acquisition .......................................................................................................................................2 1.6 Canadian Oil & Gas Sector .........................................................................................................................3 1.7 Production and Exports ...............................................................................................................................3 1.8 Conventional Oil Development ..................................................................................................................4 CERI Production Projection by Province and Well Vintage .................................................................................... 5 Royalties paid to the Alberta Government for Conventional Oil Developments ($ millions) ................................. 5

1.9 Capital Requirements ..................................................................................................................................6 1.10 Use of Proceeds .........................................................................................................................................6 1.11 Revenue Summary ....................................................................................................................................7 1.12 Public Company Operation Phases ...........................................................................................................7 1.13 Future Plans ...............................................................................................................................................7 1.14 Project Features .........................................................................................................................................8 1.15 The Opportunity ........................................................................................................................................8

2 Target Acquisition – General Oil and Gas Energy Inc. ........................................10 2.1 General Oil and Gas Purpose ....................................................................................................................10 2.2 Corporate Data ..........................................................................................................................................10 2.3 Asset Value ...............................................................................................................................................10 2.4 Ownership .................................................................................................................................................10 2.5 Anticipated Production Levels ..................................................................................................................11 2.6 General Oil and Gas Business Model .......................................................................................................11 2.7 Proprietary Software .................................................................................................................................11 2.8 General Oil and Gas Properties .................................................................................................................12 2.9 Property 1 – Falcon Resources .................................................................................................................13 2.10 Property 2 – Fern Gully Resources .........................................................................................................13 2.11 Property 3 – Gleghorn Park ....................................................................................................................13 2.12 Property 4 – Lavoie Resources ...............................................................................................................13 2.13 Property 5 – Sandhurst Lake ...................................................................................................................13

3 EOR – Enhanced Oil Recovery...........................................................................14 3.1 Enhanced Oil Recovery Methods .............................................................................................................14 3.2 The easy oil is disappearing and new oil fields are expensive .................................................................14

4 Oil Acquisitions 2013 ........................................................................................15 4.1 M & A Activity in the Energy Sector .......................................................................................................15

5 Board of Directors ............................................................................................17 5.1 Joseph Smithson, President & CEO, Director, P. Eng. ............................................................................17 5.2 Evan J. Smith, Vice President and CFO ...................................................................................................18

Business Plan 5.3 Kerry Madison, COO ................................................................................................................................18

6 Company Operations Strategy ..........................................................................20 6.1 Phase One ..................................................................................................................................................20 6.2 Phase Two .................................................................................................................................................20 6.3 Phase Three ...............................................................................................................................................20 6.4 Phase Four .................................................................................................................................................20

7 Financial Projections ........................................................................................21 7.1 Properties and Production Projections ......................................................................................................21 7.2 Assumptions ..............................................................................................................................................22 7.3 Funds Sought & Use of Proceeds .............................................................................................................22 7.4 Revenue .....................................................................................................................................................23 7.5 Income Statement ......................................................................................................................................24 7.6 Cashflow ....................................................................................................................................................25 7.7 Balance Sheet ............................................................................................................................................26 7.8 Investment Information .............................................................................................................................26

8 Bibliography .....................................................................................................27 8.1 Sources of Information ..............................................................................................................................27

1 EXECUTIVE SUMMARY 1.1 Business of the Company The General Oil and Gas Company (“General Oil and Gas” or the “Company”) will be a reporting company listed on the TSXV exchange that remains to be identified. General Oil and Gas will identify and target potential acquisitions in the oil and gas sector. General Oil and Gas has identified a target company, General Oil and Gas Energy Inc., (“General Oil and Gas”) that has significant proven and probable oil reserves in the province of Alberta. This company can be acquired as a whole or in part as a ‘qualifying transaction’ and offers General Oil and Gas significant revenue potential. A recent AJM Deloitte Detailed Reserves and Net Present Value report effective on January 31, 2012, shows a value of $133 million at a discount factor of 10% before income tax for the proven and probable reserves currently in General Oil and Gas Energy Inc. In house evaluation completed in 2013 shows an estimated value of proven and probable reserves to be $245 million. General Oil and Gas will benefit from the option to purchase General Oil and Gas in whole or in part as one of its portfolio of investments.

1.2 Company Strategy General Oil and Gas’s strategy is to acquire small and mid-sized low-risk E&P2 energy companies in Alberta, Canada. Key focus areas for its energy investments are domestic upstream businesses that are engaged in the exploration, acquisition, development and production of oil and natural gas reserves in Alberta, Canada. General Oil and Gas will primarily focus its efforts on acquiring oil and gas properties with proven developed and undeveloped reserves that are economically attractive with strong upside potential. Through its investments, General Oil and Gas plans to generate both current income and capital appreciation for its shareholders. By investing in General Oil and Gas, stockholders will be able to participate in the company’s portfolio while holding a publicly traded stock. General Oil and Gas is unique in that it will be a public company that focuses on making investments in good value assets.

1.3 Primary Objectives The primary objectives of the Company are to:  Complete a “Qualifying Transaction”.  Acquire already discovered oil and gas properties in Alberta, Canada with development opportunities and achieve a high rate of return from low risk near-toproduction projects.

E&P signifies ‘exploration and production” in oil & gas companies. 1

Business Plan 1.4 Investment Criteria Management will consider many factors in assessing its participations and acquisitions including: the ratio of risk to reward; the length of the payback period; the anticipated rate of return; the presence of multi-zone potential; near term market access; the amount of infrastructure in place; the amount of proved reserves anticipated; and the life of the reserves. General Oil and Gas’s investment criteria include the following: 

General Oil and Gas seeks to make engineering based, development oriented investments in the energy industry that are low risk and near the production stage.

General Oil and Gas will structure transactions to generate an appropriate total return for the risk undertaken

The NPV (Net Present Value) for General Oil and Gas Energy as of January 31, 2012 was calculated by AJM Deloitte to be $133 Million at a discount of 10% for the Proved and Probable Reserves.

Through the combination of assets, security, diligence, structure, and appropriate pricing, General Oil and Gas will endeavor to provide a good risk/reward for its investors.

1.5 Target Acquisition A target acquisition has been identified, General Oil and Gas Energy Inc.3, with proven and probable oil reserves with a net present value of $133 million. Initial production can begin in 3 to 4 months post financing for immediate cash flow. Management constantly examines current and old oil properties in Alberta, Canada with potential to return to oil recovery and production. To date, they have identified five high value properties with a value that has been supported in a report issued on January 31, 2012 by AJM Deloitte4.

See Chapter 2 – Target Acquisition – General Oil and Gas Energy and resource advisory practice that is fully integrated with Deloitte’s existing professional services. 2

Business Plan 1.6 Canadian Oil & Gas Sector The biggest energy story in North America is currently Alberta, Canada. Alberta holds most of the oil and gas which extends from the Rocky Mountains to the Canadian Shield, and which contains one of the world's largest reserves of petroleum and natural gas. Oil reserves in Canada were estimated at 179 billion barrels and over 95% of this oil is in the province of Alberta. Alberta contains nearly all of Canada's oil sands and 39% of Canada's remaining conventional oil reserves. Canada produced 15.3 million cubic metres of crude oil and equivalent hydrocarbons in October 2013 up 3.3% from September and 8.4% from a year ago 5. Over the year, in 2013, crude oil exports increased 17.8%, with approximately 74% of total production being exported to other markets.

1.7 Production and Exports Canada has the second largest oil reserves in the world, with over 175 billion barrels of oil within its borders. Canada sends more than 95 percent of its oil exports to the United States, the bulk of which goes to Midwestern refineries for refining and processing.

World's Top 3 Oil Reserves by Country Country Proved reserves Proved Reserves (billion barrels),Jan 1, 2010 (billion barrels), Jan 1, 2011

Saudi Arabia*

Venezuela Canada

Share of Total 01-Jan-11

The U.S. and Canada already enjoy the largest trading partnership in the world. Sourcing more of our energy from a friendly, trusted and nearby neighbor will help reduce U.S. reliance on energy resources from elsewhere. While the U.S. should expand the use of its own domestic energy resources, imported oil will continue to play a key role in meeting energy demand and oil from Canada can help meet those supply and demand challenges. Buoyed by strong crude prices, drilling for oil and gas in Western Canada have hit a five-year high in December 2012 as producers put in motion their winter action plans6. The number of rigs in the ground in the second week in January reached an 83 per cent utilization rate, a level for the beginning of January not seen since the heady days of 2006 when service companies were frantically trying to capture high natural gas and oil prices.

Statcan, Thursday, January 12, 2013. http://www.calgaryherald.com/business/drilling+reaches+five+year+high 3

Business Plan To date, in 2012, the price of crude oil is hovering around $100 per barrel which presents substantial margins for oil companies.

1.8 Conventional Oil Development The Company believes that a significant investment opportunity exists in the oil and gas sector in Alberta. In the opinion of the Company, there is a wealth of high quality oil and gas projects that are underdeveloped and have been divested, making them available to observant acquisition parties. While tar sands have been all the news in Alberta, the past year has seen a return to drilling of conventional oil resources due to advances in technology, especially in horizontal drilling methods or EOR7. By re-assessing vintage properties in relation with new technical applications, production of these properties can resume profitably. 2010 can now be viewed as a restart year for the conventional oil industry not just based on the resurgence in the number of wells drilled, driven by oil price, but more importantly based on the number of horizontal wells drilled driven by the success stories in shale gas developments. The industry is returning to old, thought to be depleted, reservoirs equipped with horizontal well drilling techniques to recover more of the resource that remains in the ground. The number of horizontal wells grew from 24 percent of oil wells drilled in 2006 to 62 percent of oil direct wells in 2013 and the future looks like the trend will continue. This report examines the growth potential in drilling activity, the effect of change towards horizontal drilling, and the increased production potential from conventional oil within the Western Canada region. Over the 2010-2035 period the estimated investments, reinvestments, and revenues from operation of the existing and future conventional oil developments in western Canada are $1,059 billion8.    

Total Canadian GDP impact as a result of the investment is estimated at close to $1,056 billion over the 25-year period. Canadian employee compensation will be almost $259 billion over this time period. Employment in Canada (direct, indirect, and induced) is expected to grow from 152,000 jobs to a peak of 227,000 jobs in 2020. Alberta royalties are expected to grow from $0.75 billion in 2010 to a peak of $4.7 billion in 2027.

EOR – Enhanced Oil Recovery – refers to new advanced oil recovery technology. CERI, Canadian Energy Research Institute, “Economic Impacts of Drilling, Completing and Operating Conventional Oil Wells in Western Canada (2010 to 2035)”. 8

Business Plan CERI9 projects that new wells will be drilled in the traditional method in resurging numbers, especially in Alberta, as displayed in the graph below. CERI Production Projection by Province and Well Vintage

The figure below displays the anticipated growth in royalties from conventional oil developments paid to the province of Alberta starting at $0.7 billion in 2010 and growing to $4.7 billion in 2027. These royalty payments include both existing and new wells as defined by the drilling forecast and utilizing the provincial royalty formulas as of January 2013.

Royalties paid to the Alberta Government for Conventional Oil Developments ($ millions)

CERI, the Canadian Energies Research Institute. 5

Business Plan 1.9 Capital Requirements In order to complete the acquisition of 100% of General Oil and Gas Energy, commence drilling, oil extraction operations, and undertake future acquisitions and exploration, the Company requires an investment of $60 million.

1.10 Use of Proceeds General Oil and Gas will use the proceeds raised in the following distribution:

Pre-Operative Expenses Financing and Use of Proceeds Phase 1 Financing

$60,000,000

Use of Proceeds Target Acquisition (Cash Portion) Drill Wells - currently planned Yrs. 1&2 Future Acquisition & Exploration

Total $ $ $

15,000,000 16,628,600 28,371,400

Total Pre-Operative Expenses

Business Plan 1.11 Revenue Summary The Company projects that gross revenues will total $188,006,744 over 4 years according to the forecast based on figures from the AJM Deloitte economic valuation. 4 Year Revenue Summary 2012

$ 7,906,000 $ 1,808,881 $16,584,000 $ $ 4,113,000 $30,411,881

$13,799,000 $ 1,803,965 $26,883,000 $ 853,062 $ 7,800,000 $51,139,027

$14,112,000 $ 894,609 $30,744,000 $ 862,563 $10,876,000 $57,489,172

$13,876,000 $ 443,414 $25,413,000 $ 642,250 $ 8,592,000 $48,966,664

$18,001,581

$26,431,827

$34,118,772

$26,300,864

Revenues: Lavoie Resources Falcon Resources Fern Gully Gleghorn Sandhurst Lake Gross Revenues EBITDA: Total

1.12 Public Company Operation Phases Phase 1: 

Complete the ‘Qualifying Transaction’ by acquiring the target oil company.

Initiate and launch the operations, set-up the administration, commence legal and accounting procedures, file papers to take the company public, and develop marketing materials. The Company will continue to raise capital on the public market for acquisitions and investments.

Phase 2: General Oil and Gas has identified one acquisition, General Oil and Gas Energy Inc., which has five properties with low risk identified drilling targets with high potential in Alberta. The Company will invest in and develop these properties employing senior oil and gas expertise from its consortium of strategic relationships in the industry resulting in cash flow within 3 months.

1.13 Future Plans The funds garnered from the Company’s entry into the public markets will be used for the further identification and acquisition of strategic oil properties, continued exploration, development and drilling operations The company intends to increase its holdings through the purchase of additional low risk high yield oil and gas properties in Alberta. Some of these properties may be purchased from the divestiture programs of larger oil and gas corporations.

Business Plan 1.14 Project Features 

All locations are in existing reefs that are not fully depleted.

Easy access. All the properties in the target acquisition are in Alberta in the corridor Northeast of Red Deer to Northwest of Edmonton.

Located in existing fields with good infrastructure that may be utilized otherwise a simple facility structure can be applied.

2nd event wells to be drilled not far from the original location that has proved to produce significant volumes from the un-swept parts of the pool above the Oil / Water contact.

Threshold for positive economics is extremely low.

5% Royalty applies to the first year to a maximum of 50,000 Barrels.

Isolated one LSD in size.

Minimal risk (limited to drilling/Completion/Equipment).

Target is bypassed oil combined with land expiry and high oil prices that lead to very good economics. Low risk and high return are principal characteristics for the opportunity.

Target fields are strong candidates for CO2 miscible floods; which could increase the oil recovery by 10-15%.

Joseph Smithson has 30 years’ experience with very strong technical background. Worked with large companies that had ownership in similar reefs (i.e. Petro-Canada, BP Canada, Amerada Hess, Union Pacific Resources / Anadarko Canada), as well as evaluated Oil & Gas properties with McDaniel & Associates and directly worked with Mr. Rod McDaniel from 1984 to 1987. Also started a successful venture that has a parallel business model to General Oil and Gas's business model, in December 2004 and sold the company to ARC Resources in December 2006.

General Oil and Gas uses a unique software analysis tool that would analyze data from every well in Western Canada, then identifies and sorts profitable high quality opportunities. Currently General Oil and Gas is targeting oil.

Additional opportunities have been identified and we are positioned to post, bid, and acquire.

1.15 The Opportunity 

General Oil and Gas offers an opportunity to obtain a position in a fairly valued, well run oil and gas capital company in Alberta, Canada.

The experience of its management team and its ability to determine the significance of oil properties is key to the success of the company.

Management has a previous record of sourcing and selling oil properties for profit.

Business Plan 

General Oil and Gas will utilize the $60 million in funds raised to complete the target acquisition and commence drilling on 5 target properties as well as undertake future acquisitions and exploration.

General Oil and Gas has a current valuation of $133m from AJM Deloitte. The cost to acquire General Oil and Gas Energy Inc. is $15m plus stock, which will offer great leverage for growth.

Expenses on drilling wells for 2 years estimated at $16,628,600.

Total EBITDA is projected to be $104,853,044 in four years.

An investment of $28,371,400 is being sought for new additional acquisitions and exploration purposes.

The income statement does not include revenues from the new additional acquisitions and exploration opportunities.

Once income is incorporated from additional exploration and acquisition opportunities, the net income and valuation of the company will improve substantially.

2 TARGET ACQUISITION – GENERAL OIL AND GAS ENERGY INC. 2.1 General Oil and Gas Purpose General Oil and Gas will acquire and develop petroleum and natural gas properties. The company has predetermined one acquisition with five properties and 18 potential wells that it considers significant: General Oil and Gas Energy Inc. General Oil and Gas is a tightly held private E & P company that owns 100% of strategic locations in five prolific light and medium oil reefs and two Gas fields in Alberta, Canada. General Oil and Gas’s lands offer significant development upside and revenue from production. A feature of the five General Oil and Gas Energy properties is that they are older wells formerly drilled by major oil producers that have been abandoned or sold. The properties show significant remaining oil reserves that can now be returned to production.

2.2 Corporate Data General Oil and Gas Energy Inc. Name Address

General Oil and Gas Energy Inc. Calgary, Alberta T7F 3K4

(855) 689-2556

(855) 689-7758

2.3 Asset Value In a report issued to General Oil and Gas on January 31, 2013, AJM Deloitte estimated the Net Present Value before income tax to be $133 million discounted at 10% for proven and probable reserves. An in-house evaluation completed in April 2013, estimates a Net Present Value of $245 million for proven and probable reserves before income tax and discounted at 10%.

2.4 Ownership General Oil and Gas acquired 3,472 Hectares with high potential, low risk Oil and Gas reserves, mostly in well-known Lavoie and Norco reef structures through Land Sales by the Alberta government (NO Environmental Liabilities). The oil drilling spacing unit is 16 hectares per well. There are 18 drilling opportunities. The lands are strategically located close to Alberta’s Industrial Heartland Development Area (potential CO2 sources) where major operators are evaluating enhanced oil recovery schemes via CO2 flood, where recovery factor can be increased by 5 to 15%; a modest 10

Business Plan increase in recovery of the original oil in place translates to a material impact on reserves and production.

2.5 Anticipated Production Levels General Oil and Gas is strategically set to take advantage of excellent high return drilling opportunities to produce upwards of 1,600 Barrels per day.

2.6 General Oil and Gas Business Model Low risk and high return are the principal characteristics of General Oil and Gas’s property selection and business model. The concept was to identify drilling spacing units that previously produced oil and watered out due to coning. A new well to be drilled a short distance away would be able to produce significant volume of reserves that would otherwise be missed. General Oil and Gas’s Business Model parallels a previous successful venture Grand Carlyle Energy Inc. (GKEI). GKEI was incorporated in 2004 and sold in 2006. GKEI acquired a land base in the Greenwater field in the prolific Lavoie reef in Central Alberta.

2.7 Proprietary Software General Oil and Gas uses a proprietary software analysis tool that analyzes Oil and Gas data from every well available in western Canada, then identifies and sorts profitable high quality opportunities. Aside from what General Oil and Gas has already acquired, other opportunities have been identified and the Company plans continue to source and evaluate properties. The Company is well positioned to post, bid, and acquire properties at any time, or compete to buy them if identified and posted by other companies.

Business Plan 2.8 General Oil and Gas Properties General Oil and Gas Energy Property Values # 1 2 3 4 5

Field Falcon Resources Fern Gully D2A Fern Gully D3A & F Gleghorn Park D3A Lavoie Resources D3F Sandhurst Lake D3 Total

Proved Developed (000's $)

13,606.1 $13,606.1

Total Proved (000's $) 0 23,475.2 4,699.5 0 22,220 10,017.6 $60,412.3

Total Proved + Probable @ 10% Disc (000's $) 2,660.6 58,562.0 10,122.4 1,239.5 39,464.1 21,297.0 $133,345.6

General Oil and Gas Oil & Gas Properties in Alberta, Canada

Business Plan 2.9 Property 1 – Falcon Resources   

There is one drilling opportunity in the Falcon Resources Field, as identified in the NI 51-101 report, by AJM Deloitte. The pool designation is Lavoie D3A. The asset Value for Falcon Resources is estimated as equivalent to the Net Present Value at 10% discount which calculates the future cash flow as of January 31, 2012 at $2,660,600.

2.10 Property 2 – Fern Gully Resources     

There are eight potential drilling opportunities in the Fern Gully Resources Field. Six locations from the Nisku D2A pool. Two locations from the Lavoie D3A and D3F pools. All are at approximate depths of 1,650 m. The asset Value for Fern Gully Resources is estimated as equivalent to the Net Present Value at 10% discount which calculates the future cash flow discounted back as of January 31, 2012 at $68,684,400.

2.11 Property 3 – Gleghorn Park   

There is one drilling opportunity in the Gleghorn Park Field. The pool designation is Lavoie D3A. The asset Value for Gleghorn Park is estimated as equivalent to the Net Present Value at 10% discount which calculates the future cash flow discounted back as of January 31, 2012 at $1,239,500.

2.12 Property 4 – Lavoie Resources 

The Lavoie D3F pool is estimated to have 1.5 Million Barrels of oil remaining to be recovered. In-house estimate is about 1.5 Million Barrels. General Oil and Gas drilled three wells. Additionally, General Oil and Gas owns 100% of a 3.2 Km Oil pipeline that ties into NEP facilities. General Oil and Gas has approval to drill 2 producers per LSD, in LSD's 6 & 7 of 14-50-26W4. General Oil and Gas encountered 25 meters of oil leg above the oil/water contact in the subject reef in D3F pool. The asset Value for Lavoie Resources is estimated as equivalent to the Net Present Value at 10% discount which calculates the future cash flow discounted as of January 31, 2012 at $39,464,100.

2.13 Property 5 – Sandhurst Lake   

There are five drilling opportunities in the Sandhurst Lake Field. The pool designation is Leduc D3. The asset Value for Sandhurst Lake is estimated as equivalent to the Net Present Value at 10% discount which calculates the future cash flow discounted back to June 1, 2013 at $21,297,000.

3 EOR – ENHANCED OIL RECOVERY 3.1 Enhanced Oil Recovery Methods A range of enhanced oil recovery (EOR) techniques are breathing new life into the world’s abandoned oil fields. Despite only recovering around 20 per cent of the oil in certain fields, the oil field’s operator, (Shell or Exxonmobil or others), ceased production from various sites in the ‘90’s when the high cost of extracting the remaining highly viscous oil simply could not be justified given the market price. But now with oil prices above $100 and advanced technologies that pump steam via horizontal wells hundreds of metres beneath the surface, oil can begin to flow once again and operators now hope to extract a further millions barrels over the next few years.

3.2 The easy oil is disappearing and new oil fields are expensive The oil field’s rebirth is part of a wider trend in the fossil-fuel industry. Much of the planet’s untapped reserves are either deep beneath the sea or in environmentally sensitive areas. This has triggered a revaluation of previously abandoned oil fields and given momentum to a suite of enhanced oil recovery (EOR) techniques that will bring it to the surface. Diederik Boersma, Shell’s R&D team leader for EOR states that all the new oil fields that are found today are in the Arctic or in the water. As this new oil is expensive, returning to existing oil fields and using EOR becomes very attractive. One of the uncertainties in oil-field development is finding the oil; that uncertainty is not there if existing oil fields are re-opened with advanced equipment.’ Traditionally, oil fields have largely been exploited through natural depletion: engineers drill a hole and the pressure in the reservoir forces out the oil. This typically leaves around 80 per cent of the oil in the ground, so energy companies then inject water or gas into the reservoir to force out more of the oil, boosting the recovery factor to approximately 30 per cent. But this is only successful up to a point. Water will follow the path of least resistance, leaving some areas of a reservoir untouched. And differences in viscosity and the effect of microscopic interactions between water and oil can also hamper recovery. EOR — a range of technologies that typically use chemicals, miscible gas or heat to alter the properties of the reservoir fluids — could, some claim, boost the recovery factor to as much as 70 per cent. With oil prices rising and concerns over future energy supply mounting, the technology has some momentum behind it and many projects which use a form of thermal EOR can begin to recover more oil from abandoned wells, a compelling illustration of the technology’s benefits. Current estimates for the percentage of oil that can be recovered using EOR vary between 50 and 70 per cent compared with the average 20 per cent achieved using natural depletion.

4 OIL ACQUISITIONS 2013 General Oil and Gas will invest in and develop oil & gas properties in Alberta, Canada that may become attractive targets for major oil companies. Below is a list of the value of some of the acquisitions and divestitures in the Canadian oil industry in 2013.

4.1 M & A Activity in the Energy Sector Silver Birch Energy Corporation -acquisition by Teck Resources Limited valued at C$435million. Daylight Energy Ltd. -C$2.2-billion acquisition by China Petrochemical Corporation, known as Sinopec Group. PTT Exploration and Production Public Company Limited - US$2.28-billion acquisition of a 40 per cent partnership interest in Statoil Canada Partnership, whose main asset is the Kai Kos Dehseh oil sands project in Canada. Cliffs Natural Resources Inc. - US$107-million acquisition of Spider Resources Inc. UTS Energy Corporation - C$1.5-billion plan of arrangement with Total E&P Canada Ltd. whereby Total will acquire UTS Energy. Sinopec International Petroleum Exploration and Production Corporation - C$4.65-billion purchase of ConocoPhillips' interest in the Syncrude joint venture. The Syncrude joint venture is the largest oil sands venture in the world that includes surface mining, extraction and upgrading, and has been in production for over 30 years. Cliffs Natural Resources Inc. - C$240-million acquisition of Freewest Resources Canada Inc., which was supported by Freewest as superior to an unsolicited take-over bid by Noront Resources Ltd. TriStar Oil & Gas Ltd. - C$2.8-billion acquisition by Petrobank Energy and Resources Ltd, thereby creating a new publicly-listed company named PetroBakken Energy Ltd. Premier Oil Plc -US$505-million acquisition of Oilexco North Sea Ltd. from Oilexco Inc., in administration. Dana Petroleum Plc - C$218-million acquisition of Bow Valley Energy Ltd. Nexen Inc. - C$735-million acquisition of an additional 15% interest in the Long Lake oil sands joint venture project and the joint venture lands from OPTI Canada Ltd. Gran Tierra Energy, Inc. - US$675-million acquisition of Solana Resources Ltd.

Business Plan Saxon Energy Services Inc. - C$677-million acquisition by Sword Canada Acquisition Company (indirectly jointly owned by Schlumberger Limited and First Reserve Corporation). Enerplus Resources Fund - sale of its interest in the Joslyn Oil Sands Project to Occidental Petroleum Corporation for US$500-million Gentry Resources Ltd. - US$268-million acquisition by Crew Energy Inc. Penn West Energy Trust - US$162-milion acquisition of Endev Energy Inc. Burmis Energy Inc. - US$222-million acquisition by Baytex Energy Trust. Enerplus Resources Fund - C$7.6-billion strategic merger with Focus Energy Trust. Canetic Resources Trust - C$15-billion strategic business combination with Penn West Energy Trust. Canadian Natural Resources on the acquisition of certain WCSB oil and gas properties. $180 million. Hunt Oil Company of Canada on the divestiture of its Canadian oil and gas assets. $525 million.

5 BOARD OF DIRECTORS General Oil & Gas has an experienced management team assembled from the top tier of the oil & gas industry in Alberta, Canada. The team has made significant contributions to the future of the Company by identifying high potential oil & gas properties for acquisition. The principals of the Company bring over 150 years of collective experience in the international oil industry and relationships with scores of exploration and development companies, consulting companies, service companies, and the financial and brokerage community relative to oil & gas. Management’s expertise will provide an advantage in the identification of high yield properties and the economical supervision of their production and drilling activities. General Oil and Gas’s Board of Directors experience in all facets of oil and gas exploration and development includes:    

The development of exploration prospects for drilling; The drilling of exploration and development prospects; The production of oil prospects and the design and construction of all production facilities; The founding, financing, and the development of public oil and gas companies including all aspects of regulatory responsibility.

5.1 Joseph Smithson, President & CEO, Director, P. Eng. Mr. Joseph Smithson has over 30 years oil and gas technical experience and previously served as President and CEO of two private Oil & Gas companies for 6 years. In December 2004, Mr. Smithson founded Grand Carlyle Energy and acquired a lucrative land base in the Greenwater Lavoie Oil Field, which was then sold in December 2006, for $18.5 Million. The majority shareholders launched General Oil and Gas Energy in 2008. Mr. Smithson’s petroleum engineering experience encompasses Reservoir, Evaluations, Acquisitions & Divestitures, Reserves Management, and Reservoir Engineering Management. This includes 5 years of key management positions with Union Pacific Resources and Anadarko Canada as Manager of Acquisitions & Divestitures, Manager of Reservoir Evaluations, Manager of Reserves, and Manager of Reservoir Engineering. Mr. Smithson has consulted to numerous oil & gas clients in Alberta such as Petro-Canada, McDaniel & Associates, BP Canada, and Amerada Hess through a consulting firm, Smithson & Associates. During the three years with McDaniel & Associates Engineering Evaluations, Joe was involved in assisting and working directly with Mr. Rod McDaniel. Joseph Smithson graduated with a BSc in Electrical Engineering 1981 from the University of Calgary. 17

Business Plan 5.2 Evan J. Smith, Vice President and CFO Mr. Smith brings over twenty years of experience in oil & gas to General and has an extensive network of industry contacts. He has held several positions in junior oil & gas exploration firms and is a key strategist with a history of successful mergers and acquisitions. Evan Smith worked for over 17 years for Husky Energy, a multi-billion dollar publicly traded company whose principal shareholder is Mr. Li-Ka Shing from Hong Kong. He held various senior managerial roles in land and rose to the position of General Manager of Land (199198), a key part of Husky’s Executive Team. Evan was responsible for all negotiations, divestitures, and acquisitions. At the request of Mr. Li-Ka Shing, he developed and executed the strategy for Husky’s oil sands exploration and development. The minimum economical entry into oil sands is approximately $325 million. Highlights of his accomplishments at Husky were: negotiated and disposed of $100 million of non-strategic assets; negotiated over 300 significant asset deals; negotiated several significant high impact Canada East Coast offshore deals totaling over $1 billion; lead the industry task force for shaping the Canadian Resources Petroleum Act; coordinated the merger of Camerica ($3 billion asset value) with Husky; and lead an engineering task force on establishing a heavy oil field data capture system that has been widely used by the several other energy companies. Evan Smith has a passion for maximizing shareholder value and has a keen eye for cost control. The groups he managed were consistently in the top-industry quartile for the lowest overhead costs per barrel of oil equivalent produced. Prior to working for Husky, Evan Smith held a senior negotiator position at Cross Canada ($15 billion in assets). He primarily negotiated land deals in the United States and internationally. Cross Canada recently merged with Alberta Energy Company to form In Canada, a $30 billion market cap company, the largest fully integrated oil & gas company in the country. Evan has an extensive volunteer background spanning over twenty years. He currently sits on several boards, including the Senate and Board of Governors for the University of Alberta. Evan Smith has been recognized with several community awards, including a Distinguished Citizenship Award. He is very well known in the energy industry and the community. Brian is a Certified Management Accountant (CMA), and Bachelor of Commerce degree from the University of Alberta.

5.3 Kerry Madison, COO Mr. Madison is a geologist with 22 years’ experience in exploration in Western Canada. His discoveries to date have produced 1.65 million barrels of oil and 26.6B cubic feet of gas. As Senior Exploration Geologist with Mobil Oil Canada, he was responsible for 2 major discoveries in Northern Alberta at Rutledge Pass with established recoverable reserves of 12 million barrels of oil equivalent.

Business Plan In addition in Central Alberta he was responsible for adding 30 million cubic feet per day of gas production and 30B cubic feet of recoverable gas reserves in a 2 year period. After leaving Mobil Oil Canada he has held Senior Exploration positions in a number of intermediate and junior oil companies establishing new core producing areas for Vanier Resources with the discovery of 750 barrels oil per day in West Central Alberta, and was instrumental in increasing Bingham Canada’s production from 4000 barrels oil per day to 6300 barrels oil per day in an 8 month period. Mr. Madison has a strong technical background in exploration, all aspects of project development and a proven ability to find hydrocarbons.

6 COMPANY OPERATIONS STRATEGY 6.1 Phase One Identification of Drillable Opportunities The identification of drillable opportunities is driven by the divestiture by the larger oil companies, the proprietary software of General Oil & Gas and the experience of the management team. With their expertise and aggressive employment of technology General has located oil & gas opportunities overlooked or ignored by other players and that have received affirmation by Deloitte that the value of these holding is $133 million.

6.2 Phase Two Acquisition of Properties Management has negotiated property rights that minimize capital outlays while offering substantial opportunity to shareholders. These properties have been assessed and their value confirmed by engineering reports and reputable industry analysts.

6.3 Phase Three Production and Development Upstream development will be managed by industry veterans with considerable engineering and technical expertise. New technology will be employed that offers low cost production modules while extracting maximum yield. General Oil & Gas will employ unconventional and enhanced oil recovery methods on its proven reserves. Robust environmental procedures will be put in place that exceed industry standards.

6.4 Phase Four Commencement of Cash Flow Success ratios will be measured after royalties are paid to determine the ongoing best course of action for profitability and future operations.

7 FINANCIAL PROJECTIONS 7.1 Properties and Production Projections Year

2012 2013 2014 2015

Wells Per Location Lavoie 3 3 3 3

Falcon Dell 1 1 1 1

Glen Park 0 1 1 1

Fenn 6 8 8 8

Sturgeon Lake 2 5 5 5

Lavoie Resources Year 2012 2013 2014 2015

Pool Rates (bbl/d) 240 375 375 361

WI Volume Bbls 80250 136875 136875 131743

Price ($ bbl) 96 98 100 102

Falcon Dell Accord Year 2012 2013 2014 2015

Pool Rates (bbl/day) 65 58 28 14

WI Volume bbl 21794 21223 10283 7982

Price ($/bbl) 83 85 87 89

Fern Gulley Year 2012 2013 2014 2015

Pool Rates (bbl/d) 516 752 842 682

Year 2012 2013 2014 2015

Pool Rates (bbl/d) 0 24 24 17

Pool Rates (bbl/d) 128 218 298 231

WI Volume bbl 172750 274356 307452 249189

Price ($/bbl) 96 98 100 102

Gleghorn WI Volume bbl 0 8705 8625 6297

Price ($/bbl) 0 98 100 102

Sandhurst Lake WI Volume bbl 42840 79590 108759 84236

Business Plan 7.2 Assumptions

Assumptions 2012 Revenue Lavoie Resources Falcon Dell Fern Gully Gleghorn Sandhurst Lake Total Sales Cost Drilling of Wells Crown Royalty Operating Costs

$7,906,000 $1,808,881 $16,584,000

$13,799,000 $1,803,965 $26,883,000

$14,112,000 $894,609 $30,744,000

$13,876,000 $443,414 $25,413,000

$0 $4,113,000 $30,411,881

$853,062 $7,800,000 $51,139,027

$862,563 $10,876,000 $57,489,172

$642,250 $8,592,000 $48,966,664

$9,050,000 $1,520,600 $1,329,700

$7,578,600 $13,713,000 $2,275,600

$0 $19,611,000 $2,619,400

$0 $19,115,500 $2,410,300

7.3 Funds Sought & Use of Proceeds General Oil and Gas seeks investment of $60,000,000. Proceeds will be used for the following:

Business Plan 7.4 Revenue

4 Year Revenue Summary 2012

(CDN$) Revenues: Leduc Woodbend Field Fairy Del Bon Accord Fenn Big Valley Glen Park Sturgeon Lake Gross Revenues EBITDA: Total

General Oil & Gas Gross Revenue Summary 70 60

Falcon Resources

Fern Gully Gleghorn

Business Plan 7.5 Income Statement

Income Statement 2012

$7,906,000 $1,808,881 $16,584,000 $0 $4,113,000 $0 $30,411,881

$13,799,000 $1,803,965 $26,883,000 $853,062 $7,800,000 $0 $51,139,027

$14,112,000 $894,609 $30,744,000 $862,563 $10,876,000 $0 $57,489,172

$13,876,000 $443,414 $25,413,000 $642,250 $8,592,000 $0 $48,966,664

Operating Costs & Royalties Marketing & Distribution

$2,850,300 $0

$15,988,600 $0

$22,230,400 $0

$21,525,800 $0

Operating Costs & Royalties

$15,988,600

$22,230,400

$21,525,800

$200,000 $300,000 $10,000 $510,000

$200,000 $900,000 $40,000 $1,140,000

Operating Income

$27,051,581

$34,010,427

Drilling Cost EBITDA

$9,050,000 $18,001,581

$7,578,600 $26,431,827

$0 $34,118,772

$0 $26,300,864

Income before Tax Provision for Income Tax

$18,001,581 $5,400,474

$26,431,827 $7,929,548

$34,118,772 $10,235,632

$26,300,864 $7,890,259

$12,601,107

$18,502,279

$23,883,140

$18,410,605

Revenues Lavoie Resources Falcon Dell Fern Gully Gleghorn Sandhurst Lake Gross Revenues Cost of Goods Sold

Overhead Administration, L & A Salary Insurance Total Overhead Expenses

Business Plan 7.6 Cashflow Cash Flow Statement Pre-Opening

Operating Activities Net Income

Net Cash Operating Activities

$41,000,000

$12,601,107 $41,000,000

$18,502,279 $53,601,107

$23,883,140 $72,103,386

$18,410,605 $95,986,526

$53,601,107

$72,103,386

$95,986,526

$114,397,131

Financing Activities Financing Fees Cash Flows from Financing Activities

$60,000,000 ($4,000,000) $56,000,000

Investing Activities Target Acquisition

($15,000,000)

Total Investing activities

Net change in cash and equivalents Cash and equivalents beginning of year Cash and equivalents at end of year

Notes to Reader: The total investment required is estimated at $60m and will be invested as follows: 

The General Oil and Gas will utilize the $60 million in funds raised to complete the target acquisition and commence drilling on 5 target properties as well as undertake future acquisitions and exploration.

The cost to acquire General Oil and Gas Energy Inc. is $15m plus stock. General Oil and Gas has a current valuation of $133m from AJM Deloitte.

A portion of the investment or $28,371,400 will be utilized for new additional acquisitions and exploration purposes.

Total EBITDA is projected to be $104,853,044 in four years without the additional revenues from new drilling opportunities.

Business Plan 7.7 Balance Sheet Balance Sheet 2012

$62,601,107 $0

$76,103,386 $0

$99,986,526 $0

$118,397,131 $0

$62,601,107

$76,103,386

$99,986,526

$118,397,132

Other Assets/Investments

$10,000,000

$15,000,000

Total Assets

$72,601,108

$91,103,387

$114,986,527

$133,397,132

Common Stock Preferred Stock Retained Earnings Shareholder Equity Total Shareholder Equity

$1 $0 $12,601,107 $60,000,000 $72,601,108

$1 $0 $31,103,386 $60,000,000 $91,103,387

$1 $0 $54,986,526 $60,000,000 $114,986,527

$1 $0 $73,397,131 $60,000,000 $133,397,132

Total Liabilities & Equity

Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets

Liabilities Current Liabilities Bank Indebtedness Accounts Payable Total Current Liabilities Total Liabilities Shareholder's Equity

7.8 Investment Information The following information and other investment information is available in the Prospectus of the Company:      

Description of Offering Available Share Classes Plan of Distribution Description of Warrants Description of Dividends Risk Factors

8 BIBLIOGRAPHY 8.1 Sources of Information Deloitte, AJM; General Oil and Gas – Lavoie Resources Final Report General Oil and Gas AB Dept of Energy General Oil and Gas Energy Inc. PowerPoint http://www.bloomberg.com/quote/0334341Z:CN http://www.deloitte.com/view/en_CA/ca/services/financialadvisory/valuationservices/ene rgy-resource-advisory/ http://www.linkedin.com/pub/yousef-joe-Smithson/32/b2b/a0 https://www.ic.gc.ca/app/scr/cc/CorporationsCanada/fdrlCrpDtls.html?corpId=7873344 http://www.list-company.com/companyinfo/4028809a13dd74c80113ddc47c423fb8/Grand-Kasya-Energy-Inc-Oil-Gas-AlbertaCanada.shtml http://ipo.investcom.com/cgi-bin/ipoprofile1.cgi?ID=1&string=General Oil and Gas+Capital+Corp&exact=yes&com=yes http://www.capital-cventures.com/?pageID=1 http://www.ngpcrc.com/ http://www.32degrees.ca/portfolio.html http://www.solaraexploration.com/ http://www.energy.gov.ab.ca/ http://www.kgs.ku.edu/Publications/PIC/pic27.html http://www.ogfj.com/mergers-acquisitions.html http://www.reuters.com/article/2011/11/15/opti-cnooc-idUSN1E7AE1SU20111115 http://www.rigzone.com/news/type.asp?t_id=5 http://theinvestmentblog.net/2011/01/17/2011-mergers-and-acquisitions-outlook-2010year-end-summary-review/ http://www.oilvoice.com/open/ http://www.oil-blog.com/ http://www.ceri.ca/ http://www.chron.com/business/article/China-invests-billions-in-oil-sands-2176114.php http://www.wikinvest.com/stock/Exxon_Mobil_(XOM) http://www.energybridge.ca/ http://www.calgaryherald.com/business/drilling+reaches+five+year+high/5996473/story.h tml?cid=megadrop_story http://www.api.org/aboutoilgas/oilsands/ http://www.scotiawaterous.com/completed-ma-transactions/year-ma-current.htm http://blakes.com/english/practiceareas/areas.asp?Search=Description&Area=Mergers+%2 6+Acquisitions&loc= http://seekingalpha.com/article/317128-5-canadian-oil-and-gas-takeover-targets-for-2012 https://mninews.deutsche-boerse.com/index.php/statcan-production-oct-crude-oil-natgas-picks?q=content/statcan-production-oct-crude-oil-nat-gas-picks http://petroleuminsights.blogspot.com/2011/02/top-22-proven-oil-reserves-holdersjan.html

For further information contact: [email protected] 1(855) 689-2556

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Shell Annual Report 2020

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Our business model explained

Business activities.

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Exploration

1 Exploring for oil and gas onshore and offshore

Development and Extraction

2 Developing onshore and offshore fields

3 Producing conventional, deep-water and shale oil and gas

4 Capturing carbon dioxide and storing it safely underground

5 Extracting bitumen

Manufacturing and Energy Production

6 Upgrading bitumen

7 Refining oil into fuels and lubricants

8 Producing gas-to-liquids(GTL) products

9 Producing petrochemicals

10 Producing biofuels

11 Generating renewable power

12 Producing liquefied natural gas (LNG)

Transport and Trading

13 Shipping gas to where it is needed

14 Shipping oil to where it is needed

15 Trading oil and gas

16 Supply and distribution of LNG for transport applications

17 Regasifying LNG

18 Trading power

Sales and Marketing

19 Supplying domestic electricity

20 Supplying products to businesses, including gas for cooking, heating and electrical power

21 Progressing electric vehicle and hydrogen refuelling infrastructure

22 Providing mobility solutions for customers, including fuels and lubricants

23 Supplying aviation fuel

Technical and Business Services

24 Researching and developing new technology solutions

25 Managing the delivery of major projects

26 Providing technical and supporting services

Organisation

We describe below how our activities are organised. Integrated Gas, Upstream and Downstream focus on our three business pillars (see “ Strategy and outlook ”). Our Projects & Technology organisation manages the delivery of Shell’s major projects and drives research and innovation to develop new technology solutions.

Integrated Gas (including New Energies)

Integrated Gas manages LNG activities and the conversion of natural gas into GTL fuels and other products. It includes natural gas exploration and extraction, and the operation of upstream and midstream infrastructure necessary to deliver gas to market. It markets and trades natural gas, LNG, electricity and carbon-emission rights and also markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels.

In New Energies, which was rebranded to Renewables and Energy Solutions in 2021, we are exploring emerging opportunities and investing in those where we believe sufficient commercial value is available. We focus on new fuels for transport, such as advanced biofuels, hydrogen and charging for battery-electric vehicles; and power, including from natural gas and low-carbon sources such as wind and solar.

Upstream manages the exploration for and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates infrastructure necessary to deliver them to market.

Downstream manages different Oil Products and Chemicals activities as part of an integrated value chain that trades and refines crude oil and other feedstocks into a range of products which are moved and marketed around the world for domestic, industrial and transport use. The products we sell include gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen and sulphur. We also produce and sell petrochemicals for industrial use worldwide. Our Downstream organisation also manages Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).

Projects & Technology

Our Projects & Technology organisation manages the delivery of our major projects and drives research and innovation to develop new technology solutions. It provides technical services and technology capability for our Integrated Gas, Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of safety and environment, contracting and procurement, wells activities and greenhouse gas management.

Our future hydrocarbon production depends on the delivery of large and integrated projects (see “ Risk factors ”). Systematic management of life-cycle technical and non-technical risks is in place for each opportunity, with assurance and control activities embedded throughout the project life cycle. We focus on the cost-effective delivery of projects through commercial agreements, supply-chain management, and construction and engineering productivity through effective planning and simplification of delivery processes. Development of our employees’ project management competencies is underpinned by project principles, standards and processes. A dedicated competence framework, training, standards and processes exist for various technical disciplines. We also provide governance support for our non-Shell-operated ventures or projects.

Segmental Reporting

Our reporting segments are Integrated Gas, Upstream, Oil Products, Chemicals and Corporate. Integrated Gas, Upstream, Oil Products and Chemicals include their respective elements of our Projects & Technology organisation. The Corporate segment comprises our holdings and treasury organisation, self-insurance activities, and headquarters and central functions. See Note 4 to the “Consolidated Financial Statements”.

With effect from January 1, 2020, additional contracts were classified as held for trading purposes and consequently revenue is reported on a net rather than gross basis.

Technology and Innovation

Technology and innovation are essential to our efforts to meet the world’s energy needs in a competitive way. If we do not develop the right technology, do not have access to it or do not deploy it effectively, this could have a material adverse effect on the delivery of our strategy and our licence to operate (see “ Risk factors ”). We continually look for technologies and innovations of potential relevance to our business. Our Chief Technology Officer oversees the development and deployment of new and differentiating technologies and innovations across Shell, seeking to align business and technology requirements throughout our technology maturation process.

In 2020, research and development expenses were $907 million , compared with $962 million in 2019, and $986 million in 2018. Our main technology centres are in India, the Netherlands and the USA, with other centres in Brazil, China, Germany, Oman, and Qatar. A strong patent portfolio underlies the technology that we employ in our various businesses. In total, we have around 8,480 granted patents and pending patent applications.

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Shell story: who we are

More in strategic report.

• Integrated Gas
• Oil Products

More in other sections

• Note 4 - Segment information
• Note 8 - Property, plant and equipment
• Note 9 - Joint ventures and associates

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