Situation Overview
Over the last 24 months, a real estate/bridge loan investment group has foreclosed on a newly constructed refinery, and an associated 300 mile pipeline, and then has further capitalized it to get it operational and profitable, and now wants to sell the asset (operating a refinery long term is not their core competency).



Asset Overview
Real estate/bridge loan investment group ("Investment Group") took over newly updated Wyoming refinery as result of defaulted loan. Put in additional capitalization to get it operational.
Currently have multiple contracts for purchasing crude, and can process 4,500 bpd (Barrels Per Day), and have multiple contracts for organizations to purchase their output (including a national oil company)
After testing operations and fixing one production issue in 2nd half of 2010 (with several profitable months), conducted 60% operations in February based on fine tuned financial model and new contracts (February was profitable)
As ramp up operations to 80% - 90% based on current model, with new contracts, profit is projected to scale up to $1-1.8M per month (gross margin was $950K in Feb, and $1.5M in Mar)
Also have about 300 miles of oil pipe lines that offer options for getting crude in, sending it out, and selling transport of crude to 3rd parties
2 Key market considerations, 1) Demand Side - Wyoming has large coal mining operations, projected for deficit local supply of diesel fuel, and 2) Supply Side - many new wells projected/permitted for surrounding area



Valuation Considerations
Based on current operations, profits projected to scale to $1M - $1.8M per month (currently generating $1.5M gross margin)
Appraisal by regional bank at over $70M
Only a few oil refinerys in a four state region
Demand consideration - State is “Net Deficit” user of oil, (not enough oil being refined in the state to meets its local needs)
Supply consideration - 36 state permits have been issued to laterally drill within half mile of refinery (several up and producing now)



Offering
Price for 100% ownership of both the refinery and the pipeline is $29M






Stuart Spires
Principal - Growth Solutions Group
Phone: (415) 339-9425
Email: stuart-spires@GrowthSolutionsGroup.com

Web: http://www.GrowthSolutionsGroup.com