Mutual Interest Joint Ventures

YES : MIJV : MAP
Social Democratic planning is successful where the Mission incorporates both conservative & venture-based commerce and trade theories.
 
 
April 17th, 2012

The Following information is proprietary; and, is offered forward to Mister RA van Pelt in confidence for the specific purpose of providing a verifiable claim by Gaia-Watts in determining the field resource evaluation, as applied to a 30-Megawatt (Mwe) electric power project in Canada, utilizing the stated P1-Factor for CH4 / Methane elements.



These said 30-Mwe facilities generate electric power grade equivalent to requirements meeting the standards of provincial grid purchases.


The equipment for these 30-Mwe projects are installed by qualified Turnkey contractors; and, similarly managed by qualified engineer staff.



The calculations for sale value of electric power is $0.52/ Kilowatt Hour. The cost of the energy resource is $0.45 / bbl equivalents (this is the in situ value); and, the sale value per bbl is $20 (note that oil today is valued @ $102/bbl –hence our field valuations of resources attached to a Power Purchase Agreement is 5 times greater today than the tabulations in 1990). Natural gas (1990 values) today are worth $10-Billion, rather than our quoted conservative (1990) $2-Billion valuations.


A 30-Mwe Facilities will use the equivalent of 150,000 bbls (tons of P1-Factor) of oil per annum to generate 8760 hours of electric power. Our projections use $20 / bbl  (tons of P1-Factor) valuation of a resource  used to generate power; and, $0.45/ bbl.




There are two categories for evaluating these energy fields:

1.     In situ field resource not attached to a power purchase agreement ($0.45/ bbl : ton)

2.     Resource attached to a power purchase agreement @ 150,000 bbls/annum ($20/bbl : ton)


Hence. The standard 30-mwe project acquires 100,000,000 bbl / tons equivalents of energy resource. The in situ value is $45-Million (1990); whereas, when attached to a secure power purchase agreement this renders a valuation of $2-Billion (1990) / 10-Billion (2012). Canada’s P1-factor renewable, sustainable resource field in Mwe$$ = 6-Trillion. Accepted Hoskolds and Bolinger engineering formulas are used to determine the in situ values.

______ 1990 Market Values of competitive energy resources – measured in BTUs ______
Per MM BTU                   Per MM BTU                 Per MM BTU                   Per MM BTU
              P1-Factor                             Oil                                Gas                              Coal
                (1923) Canada Research Council calculated 670 Million acres P1-factor exist @ 10,000 tons / bbls per acre
 

            $0.45                          $8.73                       $8.66                      $15.00  

Confidential



COPYRIGHTED

Feb-02
Calculations - P1 Factor Energy Resources                                 Prepared By: CROW // RC GOODWIN
2002




                     Not A Public Offering
Page 1








Engineering



Per ton Per Ton

Report



$0.40 $20.00
Province In Place Field Volumes In Tons [bbls of Oil]
In Situ Value MWe-value









Ontario Yes Hearst 100,000,000

$40,000,000 $2,000,000,000
Ontario Yes RRvr 12000000

$4,800,000 $240,000,000









Sask Yes JB-1 100,000,000

$40,000,000 $2,000,000,000














Totals $84,800,000 $4,240,000,000


















Notes To GRID

Resource Production Total Sales/Mwhr
1) Delivered Cost of Electric Power $3.00 $5.00 $8.00 367.92
2)







3)



Annual Value Value




Mwe Hours Per Kilowatt Hr Per Megawatt Hr
Therefore Where generation capacity is @ 30 8760







100000000 100000000




Hours Dollars P1 factor P1 Factor Gross

MWE Kilowatt Per Year Per In Situ Mwe Energy Revenue




Kilowatt Hr Value Value Per Annum

30 30000 8760 $0.022 $40,000,000 $2,000,000,000 $5,781,600

30 30000 8760 $0.032

$8,409,600

30 30000 8760 $0.042

$11,037,600

30 30000 8760 $0.052

$13,665,600









Explanations P1- factor Resource Evaluations






_________________ Peat Resources Required Per Annum _______________
{1-Ton Peat=1-bbl oil} 1-Ton/bbl 10 Mwe 20 Mwe 30 Mwe 40 Mwe 50 Mwe



10 20 30 40 50
Required Kilowatts 1000 10000 20000 30000 40000 50000

TONS/Yr
100000 2000000 3000000 4000000 5000000


$/KwHr _____________ Gross Revenues Per Annum Per Megawatt Size ______________
Gross Revenues @ $0.022 $1,927,200 $3,854,400 $5,781,600 $7,708,800 $9,636,000
Gross Revenues @ $0.032 $2,803,200 $5,606,400 $8,409,600 $11,212,800 $14,016,000
Gross Revenues @ $0.042 $3,679,200 $7,358,400 $11,037,600 $14,716,800 $18,396,000
Gross Revenues @ $0.052 $4,555,200 $9,110,400 $13,665,600 $18,220,800 $22,776,000









% 23 $/KwHr 10 Mwe 20 Mwe 30 Mwe 40 Mwe 50 Mwe
Net Revenues     @ $0.022 $443,256 $886,512 $1,329,768 $1,773,024 $2,216,280
Net Revenues     @ $0.032 $644,736 $1,289,472 $1,934,208 $2,578,944 $3,223,680
Net Revenues     @ $0.042 $846,216 $1,692,432 $2,538,648 $3,384,864 $4,231,080
Net Revenues     @ $0.052 $1,047,696 $2,095,392 $3,143,088 $4,190,784 $5,238,480









Cogeneration Plant ONLY 10000 20000 30000 40000 50000
Capitalisation Costs/MWe 10 Mwe 20 Mwe 30 Mwe 40 Mwe 50 Mwe
Based @ $750,000 per Mwe $7,500,000 $15,000,000 $22,500,000 $30,000,000 $37,500,000
Based @ $1,000,000 per Mwe $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000
Based @ $1,500,000 per Mwe $15,000,000 $30,000,000 $45,000,000 $60,000,000 $75,000,000
Trigeneration {Mwe-GH-R&D}





Based @ $2,250,000 per Mwe $22,500,000 $45,000,000 $67,500,000 $90,000,000 $112,500,000
Based @ $3,000,000 per Mwe $30,000,000 $60,000,000 $90,000,000 $120,000,000 $150,000,000
Based @ $4,500,000 per Mwe $45,000,000 $90,000,000 $135,000,000 $180,000,000 $225,000,000
Feb-02
Calculations - P1 Factor Energy Resources                                 Prepared By: CROW // RC GOODWIN
2002
Confidential

                     Not A Public Offering
Page 2








Statement Of Expenditures In Relation To The $12-Million USD Asset Acquisitions









Section Category
Explanation
Cost Accum Cost % of Total

Per Project






A Field Studies Energy Resources




30-90 Days a1 Engineering Reports $100,000 $100,000 19.8%


a2 Permits / Licences $1,000 $101,000 0.2%


a3 Staff
$22,500 $123,500 4.5%


a4 Transportation
$9,000 $132,500 1.8%


a5 Accomodations
$9,000 $141,500 1.8%


a6 Leases
$25,000 $166,500 5.0%


a7 Legals
$5,000 $171,500 1.0%


a8 Accounting
$5,000 $176,500 1.0%


a9 Publications
$1,000 $177,500 0.2%


a10 Support Data
$2,000 $179,500 0.4%


a11 Communications $3,000 $182,500 0.6%


a12 Independent Lab Analysis $5,000 $187,500 1.0%


a13 Public Hearings
$5,000 $192,500 1.0%


a14 Power Purchase Negotiations $5,000 $197,500 1.0%


a15 Host Community Negotiations $10,000 $207,500 2.0%


a16 Bank / Finance Negotiations $200,000 $407,500 39.7%


a17 Turn Key Contractor Negotiations $5,000 $412,500 1.0%


a18 Miscellaneous Expenses $5,000 $417,500 1.0%


a19 Error Factor @ 5% $20,875 $438,375 4.1%


a20 Taxes 15% $65,756 $504,131 13.0%









NOTE







Section One ________ The Trigeneration Template prescribes the following prerequisites: 10-50 Mwe
1a Energy Block to be a minimum of:





i) 50 years of energy resources




ii) BTU values of 6,000,000 per energy unit




iii) 100,000,000 tons/bbls energy resource volumes




















Section Two  ________ The targeted enrgy fields in Canada are located in each province and territory
2a Land mass as target block





i) 270,000,000 hectares { 2.471*270,000,000} = 667,000,000 acres


ii) Volume of electric power to generate @ 10% {=100,000 Mwe} of North American market

iii) Field studies to be completed within 12 months of commencement


iv) $12-Million USD will secure unclaimed resource fields + joint ventures with other fields under


third party ownership






I.E: Field Crews Expenses Negotiations Third Parties Total

$12,000,000 Canada 10 Development



Acquisition Budget
$2,380,333 $2,201,808 $5,236,732 $2,181,128 $12,000,000



19.8% 18.3% 43.6% 18.2% 100%












Acquire Time Cost Of Total In Situ Total

Budget $12,000,000 Canada Months Acquisitions Value Energy Value




12 $12,000,000 $1,920,000 $6,000,000,000,000