okra energy investor pitch deck 06-29-2017
TRANSCRIPT
Our mission is to deliver affordable, environmentally-friendly energy to our customers in the Caribbean and Latin America while driving excellent investor returns.
We connect stranded energy and stranded customers by leveraging our innovative thinking and deep industry expertise to take advantage of the opportunities provided by the confluence of low energy prices, technological advances, evolving energy demands and an inefficient, legacy energy infrastructure.
What We Do:‣ Buy rights to natural gas wells.
‣ Supercool gas to -162° C, turning it to liquefied natural gas (LNG), which reduces its volume by 600x!
‣ Fill cryogenic containers for transport via truck, rail or ship.
‣ Deliver LNG to power generation plants, industrial manufacturers and industries as fuel.
Our Liquefaction Technology Small-scale liquefaction (ssLNG)
▸ World-class natural gas liquefaction plant engineering and design
▸ Dr. Gongaware, Okra Energy’s CTO, is the chief designer of this plant and is managing installations in both Peru and the US. THIS IS HOW WE SUPERCOOL THE NATURAL GAS
Gas is:
▸ Abundant, secure and inexpensive due to new extraction technologies.
▸ The cleanest fossil fuel for the environment.
▸ A safe and low-risk fuel.
▸ Lower in CapEx and OpEx for power generation.
Gas power plants are 50% faster and more economical to build than conventional plants (coal, diesel, heavy fuel oil, etc).
Source: BP p.l.c. 2015
Global gas demand is increasing.
▸ 30 year gas purchase agreement.
▸ Property selected; Purchase scheduled; Environmental Phase 1 completed.
▸ Total government grants + incentives = $3M
▸ 10 year tax abatement.
▸ Operational: 5/2018.
Anchor clients: International steel manufacturer & a global fuel distributor.
Current projects in Alabama (USA) & Lima (Peru)
▸ Current ~ $4 million equity investment.
▸ All government permits and licenses in-place.
▸ 33% of plant’s 19-year total output pre-sold, resulting in positive cash flow by 2018.
▸ Operational: 10/2017.
Much of the world's inexpensive and clean-burning gas is “stranded," located in geographically remote areas far away from existing pipelines.
Problem: Stranded gas, stranded consumers.
Solution: Small-Scale & Containerized LNG.
‣ Power generators
‣ Manufacturers
‣ Industrial users
‣ Tourism Industries
‣ Mining
‣ Trucking, Marine & Rail
Containerized LNG enables stranded consumers without access to pipelines to benefit from natural gas — quickly, independently and without massive capital investments.
Client 2
▸ Non-binding 5-year offer from multi-national fuel distributor
▸ Negotiating transition to binding MOU
▸ 5 -year, $10M off take.
Client 1
▸ Global steel manufacturer (Largest in Western Hemisphere)
▸ Transitioning from compressed natural gas to LNG with Okra Energy.
▸ 7- year, $43M contract signed
Clients (Peru Plant): NDAs Required
▸ 25 year old US-owned oil and gas company.
▸ Okra Energy has a 20-year Gas Purchase & Sale Agreement (PSA).
▸ Pricing below Henry Hub index.
▸ US-owned natural gas supply.
▸ Okra Energy has a 30-year gas supply contract.
▸ Credit rating: Aa3 Moody’s.
▸ Low price and plentiful.
Northern Peru: Our source for clients west of the Panama Canal.
Gulf Coast of USA: Our source for clients east of the Panama Canal.
Strategically located partner-suppliers of natural gas:
Years 1 - 7 (booked) $53,000,000Years 8 - 19 (projected)
$132,000,000Total $185,000,000IRR* ~34% (initial 7 years)
Total Project Cost $12,000,000*Off-the-graph IRR for full 19 years due to relatively flat cost curve.
Financials: Peru Project Revenue Summary
▸ Executed $43M anchor 7-year contract
▸ Current $10M, 5-year MOU for balance of plant supply
▸ Executed 19-year land lease & gas purchase agreements
▸ All regulatory approvals, licenses and legal permissions granted
▸ Finalized $1M acquisition of a transportation company with 20+ years experience in LNG
▸ Engineering complete; Site under construction; equipment purchased.
▸ Plant operational October 2017
▸ Cash positive in 2018
Peru project at a glance:
Management Team
Louis Ravenet, CEO
Louis has founded and directed several technology, software, development, transportation and service companies, building diverse international teams to deliver long-term contracts for entities including the White House, DOD/Pentagon, the NSA, Newsweek, the LA Times, Raytheon, PricewaterhouseCoopers, and the United States Air Force, among others. Several of his companies have been sold, including divisions and/or technologies acquired by Avanade, Microsoft, Twitter and Lucent Technologies.
Don Gongaware, PhD, CTOLNG thought-leader and technology designer with 25+ years experience in cryogenics. Lead the design, fabrication, installation, and operations of LNG projects for clients such as Shell, Prometheus, Plum Energy.
Le Chen, CFO 13 years at Société Générale, managing its Municipal Finance Group; CEO of Vendor Capital Finance LLC.
Andrea Ravenet, COO United Way, iCommunicate, Founder of Wild Radish, LLC. Various technology ventures with successful exits.
Conrado Rodrigues, EVP Business Development
Business development director specializing in power generation, LNG processing, stranded gas, LNG conversions.
Rafael Francolino, Director30+ years distributing natural gas to Latin America, directing all phases of design, delivery, regulation, transport and logistics. CEO of Group Francolino Chile, Gas-Stream and CryoGas. His most recent company was acquired by ENGIE.
Louis Ravenet, CEO
+1.206.495.7574
Le Chen, CFO
+1.347.228.0325
USA 27 W. 20th Street, Suite 701, New York, NY 10011
PERU Calle Malecón Balta 874, N° 1401, Miraflores, Lima
Contacts