Acme Oil Limited

Business Plan

Acme Oil
202-311-3114
123 Anywhere
New York, NY, 10019
 Confidentiality Agreement

The undersigned reader of Acme Oils Business Plan hereby acknowledges that the information provided
is completely confidential and therefore the reader agrees not to disclose anything found in the business
plan without the express written consent of Acme Oil.

It is also acknowledged by the reader that the information to be furnished in this business plan is in all
aspects confidential in nature, other than information that is in the public domain through other means
and that any disclosure or use of the same by the reader may cause serious harm and or damage to Acme
Oil.

Upon request this business plan document will be immediately returned to Acme Oil.

This is a business plan. It does not imply an offer of any securities.

Applicable Law

This contract shall be governed by the laws in the State of New York.

__________________________________________________

Signature

__________________________________________________

Printed Name
 Overview

The following business plan is for Acme Oil Limited, a license modular refinery company with
over 12 years experience trading petroleum products regarding the planned development of
a 30,000 BPSD modular oil refinery facility and gas generators located in the country of Nigeria
in addition to the development of a hospital in Cross River State and international administrative
office development over the next five years assuming a 120 month, 4.5% loan of $500,000,000
to be received.
 Table of Contents

Executive Summary ............................................................................................................... 6

Product & Service Summary ...........................................................................................................6
Market Summary ...........................................................................................................................6
Mission ..........................................................................................................................................7
Objectives ......................................................................................................................................7
Keys to Success ..............................................................................................................................7
Development Plan Summary ..........................................................................................................7

ACME OIL Petroleum Refinery ............................................................................................. 8

Phase I Modular Oil Refinery........................................................................................................8
Phase II Administrative Offices.....................................................................................................9
Phase III Hospital & Medical Training Facility ................................................................................9

Industry Overview ............................................................................................................... 11

Market Trends ............................................................................................................................. 11
Market Growth ............................................................................................................................ 12
Market Segmentation................................................................................................................... 13

Strategy & Implementation Summary .................................................................................. 14

Management Team ...................................................................................................................... 15
Organizational Chart .................................................................................................................... 16
SWOT Analysis ............................................................................................................................. 17
Comparable Facilities ................................................................................................................... 18
Marketing Plan............................................................................................................................. 19
Downstream Strategy ................................................................................................................... 19

Financial Forecasts .............................................................................................................. 20

Start-up Summary ........................................................................................................................ 20
Financial Highlights ...................................................................................................................... 21
Financial Indicators ...................................................................................................................... 22
Revenues Forecast ....................................................................................................................... 23
Personnel Forecast ....................................................................................................................... 24
Projected Profit and Loss .............................................................................................................. 25
Projected Cash Flow ..................................................................................................................... 26
Projected Balance Sheet ............................................................................................................... 27
Sensitivity Analysis ....................................................................................................................... 28
 Table of Figures

Figure 1: Organizational Chart .................................................................................................................... 12

Figure 2: Post-Financing Expenses .............................................................................................................. 16
Figure 3: Financial Highlights ...................................................................................................................... 17
Figure 4: Financial Indicators ...................................................................................................................... 18
Figure 5: Revenue Forecast ......................................................................................................................... 19
Figure 6: Profit & Loss ................................................................................................................................. 20
Figure 7: Cash Flow ..................................................................................................................................... 21
Figure 8: Wages & Payroll ........................................................................................................................... 22
Figure 9: Balance Sheet ............................................................................................................................... 23
Figure 10: Scenario Analysis ........................................................................................................................ 24
Figure 11: Break-Even Analysis ................................................................................................................... 25
Figure 12: 12 Month Profit & Loss .............................................................................................................. 26
Figure 13: 12 Month Cash Flow Statement ................................................................................................ 27
EXECUTIVE SUMMARY

The Acme Oil project, the Facility, will take place in three phases including the development of a 30,000
BPSD modular oil facility on 90 hectares of land in Cross River State, Nigeria, for which a purchase
agreement for at least 60% of petroleum based products has been secured, a 100 bed hospital and
medical training facility on-site, and international offices are to be developed. The business plan outlines
the operation description including the management and planned facility details, along with an analysis
on the stability of the Nigerian economy and oil market for the next ten years, and financial projections
based on comparable facilities in Nigeria.

PRODUCT & SERVICE SUMMARY

Acme Oil will primarily engage in oil & gas production, refining, and distribution. However, it will also have
the capacity to produce petrochemicals as byproducts. Revenue will also be generated from the planned
development of a hospital facility and medical training facility designed to generate a quality of care
comparable to wealthier nations. As of this business plan, the price per barrel of crude has been assumed
to be $54.19, with 30,000 BPSD capacity at 100% utilization upon inception.

MARKET SUMMARY

There are two primary markets which will influence the performance of the Facility. The first is the global
demand and price for oil, which will dictate the profit margins, along with the state of the Nigerian
economy with the primary concerns being the level of corruption in the country and the recent recession.

Despite falling crude oil prices over the past decade, Tudor, Pickering, Holt & Co. International, the
Houston investment bank, on 17 May issued its 2018 forecast for the dominant North American crude,
West Texas Intermediate, at $65 a barrel. Despite being higher than the market average, the current crude
price was used for the projections.

The recession in Nigeria in-fact makes labor costs less expensive and allows for financial arbitrage since
US dollars will be used for the financing and sale, therefore, a declining Naira are favorable for competitive
contractor bids and greater buying power.
MISSION

The mission of the Facility is to efficiently refine and distribute 30,000 BPSD of oil per day at 100% capacity
and consistently sell the oil at current market rates with purchasing agreements, while brining jobs, access
to better healthcare, and overall wellbeing to the citizens of Nigeria.

OBJECTIVES

Acme Oil has the following five year objectives:

Establish a 30,000 BPSD modular oil refinery in Nigeria within six months.
Begin operations at 100% capacity in month one and sell at market price.
Acquire an additional purchasing agreement for the remaining 40% not covered.
Implement Phase II of office construction in September December of FY 2017.
Collaborate with CB&I for project planning and development of the Facility.
Collaborate with Phillips Consulting for all human resource related needs.
Have a separate administrative office in New York City responsible for all company finances.

KEYS TO SUCCESS

Acme Oil has identified the following keys to success over the next five years:

Perform regular and ongoing maintenance to extend asset life.

Carefully manage finances and assets from the New York City office.
Obtain corruption insurance and take necessary precautions to avoid corruption.
Be self-dependent on energy to not rely upon the national grid for energy.
Have a professional executive management team for all aspects of operations oversight.

DEVELOPMENT PLAN SUMMARY

The development of the Facility will take place in three phases over the course of thirty-six months with
the first six month focused on the full construction of the refinery and second phase construction of the
administrative offices to take place in Q4 of 2017. The Facility has already secured 90 hectares of land and
necessary municipal and national approval to construction on the location - $250,000,000 of the
financing will be allocated for the development of the refinery and adequate working capital to
cover fees before the first yield sale for the first phase.
ACME OIL PETROLEUM REFINERY

Acme Oil is an existing trader of petroleum with 12 years of experience and will be introducing a new
30,000 BPSD modular oil refinery in South River, Nigeria on 90 hectares of secured land. The facility will
take place in three phases of development including the establishment of the oil refinery, administrative
offices internationally, and establishment of a hospital and medical training facility.

Figure 1: Map of Cross-Rivers State, Nigeria

PHASE I MODULAR OIL REFINERY

Most 30,000 BPD units can be installed within an 18 month time window for a budget of $100 M, this
budget decreases significantly given the low labor cost and weak national currency that has increased
buying power of US dollars. The projections estimate that the facility will be constructed in an expedited
6 month time window with a phase one budget of $250 M, which will include additional capital reserves
for operating expenses prior to the first sale including staffing, professional services, and related fees.
Tank farms will be established in Togo, Ghana for storage, in addition to a pipeline established for
transportation and several supporting transportation vehicles.
PHASE II ADMINISTRATIVE OFFICES

Commercial properties will be acquired as administrative sales offices to also serve as investment
properties, which will support downstream distribution and business development in Ghana, Togo, Lagos,
Abuja, and in the United States, Indonesia, Singapore, and Dubai. The primary distribution markets will
include West Africa, Asia, United States, and Europe. The headquarters with executive staff and financial
controllers will be in New York City, with the operations and production team in Nigeria with the sales
offices in Asia and Europe.

PHASE III HOSPITAL & MEDICAL TRAINING FACILITY

The 100 bed hospital will be located in Cross-Rivers State, Nigeria, on the same 90 Hectares reserved for
the oil refinery, powered by the same gas turbines supporting the Facility. The hospital will also include
training facilities for pharmacists, doctors, and nursing assistants. It will not only serve the staff and
employees at the Facility, but also others citizens of Nigeria and the bordering Cameroon to provide a
higher standard of healthcare within Nigeria comparable to wealthier nations. Resources have already
been donated by other health professionals including two ambulances and several medical doctors have
already expressed interest in working for subsidized rates to make a higher quality of care more
affordable.

Figure 2: 3D Rendition of Hospital Facility

Figure 3: Hospital Floor Plan
INDUSTRY OVERVIEW
According to a report by the Organization of Petroleum Exporting Countries (OPEC), Nigerias oil
production increased from 1.550 million b/d in January to 1.608 million b/d in February following decline
in attacks in the oil producing region.1 Per research conducted by the Wall Street Journal, the estimated
cost of production per barrel is approximately $28.00, accounting for all related expenses to generate net
profit, which is reflected in the financial model.

Figure 4: Cost of Oil Production

MARKET TRENDS

The recent price decline of the Nigerian currency in the past year and current recession and paradoxically
favorable to the Facility. The weaker local currency will not be used and only US dollars will be acquired
and exchanged, or a comparable stable currency if sold internationally. Therefore, the buying power of
the facility will increase while the exchange rate is suppressed and regional vendors, staff, and other
related providers reduce rates to be more competitive in a buyers market. A threat of this recession is
that local government may pressure the Facility for money, but this is mitigated by being entirely self-

1
Source: http://www.africanews.com/2017/04/03/nigeria-plans-to-transform-illegal-refineries-into-consortium//
sufficient from the national energy grid and other national resources that would otherwise invite
government control.

Figure 5: NGN to USD Chart

MARKET GROWTH

OPECs level of adherence to the output cut deal has been very high, ~90% in January, and this will drive
the market rebalancing process in the coming months. In the short-term, McKinsey & Co. expect LTO
production to return to strong growth, while accelerated legacy declines due to the lack of upstream
investment will help reduce the oversupply. In the long-term, future oil demand growth slows down due
to slower global GDP growth of 2.5-2.7% p.a. through 2030 and decreasing oil intensity driven by energy
efficiency and substitution. On the supply side, recent improvements in project costs are expected to be
partially maintained and translate to 15-20% reductions in project breakeven price by 2030.2

Figure 6: Two Year Crude Oil TWI

2
Source: https://www.mckinseyenergyinsights.com/services/market-intelligence/reports/global-oil-supply-demand-outlook/
MARKET SEGMENTATION

The oil products will primarily be sold in West Africa, Asia, the United States, and Europe. The companys
focus is Asia, since it has a contract to purchase at least 60% of Petroleum based products from a company
in Indonesia.

Figure 7: Global Oil Demand3

Asia: The high operating cost in many Asian countries, particularly the Asia-Pacific countries have resulting
in a large portion of their oil sources being imports. Asia Pacific oil demand is expected to grow by 800,000
- 900,000 barrels per day in 2017/2018, while production from the region could shrink by as much as
330,000 bpd over the same period.4

United States: Despite pressure by the US government, the global oil demand in the United States is
expected to increase over the next twenty years. In 2016, the United States consumed a total of 7.19
billion barrels of petroleum products, an average of about 19.63 million barrels per day.5 In 2016, U.S.
net imports (imports minus exports) of petroleum from foreign countries were equal to about 25% of U.S.
petroleum consumption.

Europe: The production of crude oil in the EU-28 only covers a small proportion of its needs (12.6 %). In
2014 net imports (imports minus exports) of crude oil into the EU-28 from the non-EU countries was 486.1
Million tons (Mt). The major imports came from Russia (150.3 Mt in 2014), Norway (64.6 Mt), Nigeria
(45.2 Mt) and Saudi Arabia (44.2 Mt). See Table 1 and Figure 2 for the historic evolution since 2000.6

3 Source: https://www.iea.org/oilmarketreport/omrpublic/currentreport/
4 Source: http://oilprice.com/Energy/Crude-Oil/Oil-Could-Rise-Further-On-Stronger-Asian-Crude-Demand.html
5
Source: https://www.eia.gov/tools/faqs/faq.php?id=33&t=6
6
Source: http://ec.europa.eu/eurostat/statistics-explained/index.php/Oil_and_petroleum_products_-_a_statistical_overview
STRATEGY & IMPLEMENTATION SUMMARY
The fact that Acme Oil has over twelve years of oil trading experience means that unlike many refineries
that depend upon intermediaries, Acme Oil can sell directly to its existing client network and therefore
have a high price per barrel and higher profit margins. Moreover, it does not need to be concerned about
sale of the product since the management already has prior experience and contacts for the downstream
oil.

Upstream Refinery

The refinery will be entirely self-sufficient and not require assets from outside parties with a 30,000 BPSD
modular facility installed, in addition to tank farms in Togo and Ghana with proprietary pipelines leading
to each facility. Trucks and other transportation vessels will also be procured to transport the petroleum
for shipment and export. The site will also contain a fire department, shopping, lodging, and hospital
facility to provide all the needs of workers with minimal to no third-party interaction required.

Downstream Distribution

Acme Oil already has buyer relationships established for the output of the facility, but it will invest in
additional sales/administrative offices in the Asia-Pacific, Western Africa, Europe, and United States to
develop and maintain its own distribution channels. This will avoid the requirement of interacting with
intermediaries and enable the business to sustain temporary oil price declines and have overall higher
profit margins.
MANAGEMENT TEAM

John Doe Chief Executive Officer

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Susan Miller Chief Operating Officer

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Kevin Jones -Chief Financial Officer

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Adrian Wilcourt Legal Compliance

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ORGANIZATIONAL CHART

Adrian
Board/Investors
Wilcourt/Legal

John Doe/CEO

Susan Kevin
Miller/COO Jones/CFO

Marketing
Sales Director Accounting
Director

Sales Reps Collections

SWOT ANALYSIS

Strengths

Acme Oil has prior experience in oil trading and therefore, has downstream connections.
The Facility will be self-sustaining and not dependent on the municipal grid or other resources.
The companys administrative offices will be in New York City for management control.
The company will provide the lender will access to all financial logs held in New York.
The management team has prior experience managing high output modular oil refineries.
The management team is well versed in Nigerian business and understands its threats.
The oil will be traded in US dollars or a comparable stable currency to avoid deflation.
The Facility is asset intensive and will have the ability to liquidate real estate if needed.
The company already has secured a buyer for at least 60% of Petroleum based products.
Additional staff will be secured by Phillips Consulting, and experienced industry leader.
The company will own all assets across the upstream and downstream supply chain.

Weaknesses

Financing the facility with debt will increase the risk over a short-period of time, but most modular
oil refineries are financed by debt of some form and the 4.5% interest rate is very manageable.

Opportunities

The cost to build a facility is decreased due to the exchange rate of the NGN to USD, which will
allow the company to construct the refinery at a lower cost and operate the Facility with lower
fees.
Despite the introduction of supplements such as natural gas and electric vehicles, the world will
remain dependent on oil until reserves are depleted, as widely held by most research firms.
The cash flows of oil refineries are both stable and predictable, offering easy loan repayment.
The naturally cool climate in the Cross-Rivers State area will make energy usage on heat and air
conditioning minimal, saving gas turbine production costs.

Threats

The recent oil price decline has decreased the profit margins of oil refineries, however, evidence
suggests that this decline is only temporary and is believed to increase over the next decade.
The recent recession and corruption levels in Nigeria make it a challenging place to operate a
company, but the operations will mostly take place in New York City and the facility will have
minimal interaction with the municipal government.

Acme Oil | Business Plan | PAGE 17

COMPARABLE FACILITIES

There are several existing and planned oil refineries within Nigeria, in addition to many illegal and
undocumented refineries. Acme Oil has already received municipal approval to establish and operate the
30,000 BPSD facility and therefore, will have protection to operate the refinery as competition decreases
with the government interception of illegal refineries.7 According to an April, 13, 2017 article in Reuters,
Nigeria's military said that it had destroyed 13 illegal refineries in the restive Niger Delta oil hub, in an
operation in which two soldiers died in clashes with "sea robbers".8

Existing Oil Refineries

Kaduna Refinery (NNPC), 110,000 bbl/d (17,000 m3/d)

Port Harcourt Refinery (NNPC), 210,000 bbl/d (33,000 m3/d)
Warri Refinery (NNPC), 125,000 bbl/d (19,900 m3/d)
Dangote Refinery (Dangote Group), 650,000 bbl/d (103,000 m3/d), (under construction)

Planned Oil Refineries

Italian oil company Eni plans to build a crude refinery in Nigeria with capacity of 150,000 barrels
a day through its Agip subsidiary, the country's oil minister claimed in May of 2017.9
Capital Oil and Gas Industries Limited is in collaboration with Lagos State government (Lagos) for
the construction of 200, 000 barrels per day (bpd) refinery.10

7 Source: https://www.theatlantic.com/photo/2013/01/nigerias-illegal-oil-refineries/100439/
8 Source: http://www.reuters.com/article/us-nigeria-oil-idUSKBN17F1BZ
9 Source: http://af.reuters.com/article/investingNews/idAFKBN1851Q9-OZABS
10
Source: https://www.proshareng.com/news/General/Capital-Oil,-Lagos-plan-200,000bpd-refinery-/6543

Acme Oil | Business Plan | PAGE 18

MARKETING PLAN

Acme Oil has over 12 years of experience trading oil internationally, it intends to utilize its existing
downstream connections to sell its own Petroleum based products. An agreement with an existing buyer
from Acme Oil trading intends to purchase 60% Petroleum based products from the Acme Oil refinery.
However, similar relationships will continue to be developed as the company establishes foreign sales
offices throughout Asia, Europe, Western Africa, and in the United States.

DOWNSTREAM STRATEGY

Business Development

Regional business development managers and supporting business development staff will be hired as hub
and spoke sales regions to develop and nurture downstream supply agreements for the Petroleum based
products. Having an international presence will enable the Facility to avoid countries experience
temporary economic challenges or long-term supply changes with government initiatives to reduce
foreign oil dependency, while diversifying the buyer network to avoid dependency on any one buyer
and/or country.

Transpiration & Logistics

The Facility will establish its own pipeline, transportation vessels, and other assets for transport and
storage to its tank farms in Togo and Ghana for refinery and storage. At that point, it will transport the
barrels to buyers coordinated with the business development team. There will be no interaction with
third-parties and minimal government engagement to avoid corruption.

Collections & Receivables

The collections and receivables will take place with the US dollar or a comparable stable currency, all
finances and assets will be managed by the New York City entity with account management and
collections taking place with the regional offices offshore. This will avoid the use of the Naira currency and
reserve the local currency for purchasing after accounting for the strong US dollar exchange rate.

Acme Oil | Business Plan | PAGE 19

FINANCIAL FORECASTS

START-UP SUMMARY

Per the term sheet provided by PointFinance, the financing will arrive in three tranches, the first tranche
comprised of $250,000,000, the second to be phased in on September of 2017 of $150,000,000 and the
remaining $50,000 to be distributed in December 2017 with an interest rate of 4.5% and ten year
amortization. The startup summary provides a detailed breakdown of the build-out and pre-production
costs, as Month 1 of the financial forecasts begins on the first day of operation.

Startup Expenses Startup Liabilities

Staffing Company 120,000 Liabilities and Capital
Auxiliary Staffing 175,000 Current Borrowing -
Legal/Accounting Fees 50,000 Long-Term Liabilities 250,000,000
Project Management 75,000 Accounts Payable -
Total Startup Expenses $420,000
Startup Investments
Startup Assets Planned Investment
Staffing Company 120,000 Owner -
Auxiliary Staffing 175,000 Investor -
Legal/Accounting Fees 50,000 Total Planned Investment $0
Project Management 75,000
Working Capital 36,755,000
Startup Funding
Total Startup Assets $120,000 Total Liabilities 250,000,000
Total Planned Investment -
Total Requirements Total Funding $250,000,000
Total Startup Expenses $250,000,000
Total Startup Assets -
Total Requirements $250,000,000

Acme Oil | Business Plan | PAGE 20

 FINANCIAL HIGHLIGHTS

The consolidated financial highlights shows the first twelve months and five years of operations after
construction has been completed. Variance each month accounts for the number of operating days in
the month given the capacity and assuming the facility operates 7 days per week. The beginning of the
second phase is indicated by the negative cash flow in the latter portion of the FY 2017 cash flow.

Financial Highlights ($000)

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 51292 46328 51292 49637 51292 49637 51292 51292 49637 51292 49637 51292 603922 603922 603922 603922 603922
Gross Margin 39023 35247 39023 37764 39023 37764 39023 39023 37764 39023 37764 39023 459464 459464 459464 459464 459464
Operating Expense 18710 18710 18710 18710 18710 18710 18710 18710 18710 18710 18710 18710 224514 224514 224514 224514 224514
EBITDA 20238 16462 20238 17697 18956 17697 18956 18956 17697 18956 17697 18956 218658 217281 217048 217048 217048
Net Profit 18485 14720 18508 15977 17248 16000 17270 17282 16034 17305 16057 17328 198366 198664 200183 200183 200183

Gross Margin/Revenue 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76%
EBITDA/Revenue 39% 36% 39% 36% 37% 36% 37% 37% 36% 37% 36% 37% 36% 36% 36% 36% 36%
Net Profit/Revenue 36% 32% 36% 32% 34% 32% 34% 34% 32% 34% 32% 34% 33% 33% 33% 33% 33%

Net Cash Flow 17647 13871 17647 15106 16365 15106 16365 16365 (36449) (35190) (36449) 14242 34628 161316 161083 161083 161083
Cash Balance - Ending 54402 68274 85921 101027 117392 132498 148863 165227 128779 93589 57141 71383 71383 232699 393782 554865 715948

Projected Operating Highlights By Year ($000) Projected Revenues By Year ($000)

700000 700000

600000 600000
Revenue
500000 500000

400000 Gross Margin 400000

300000 300000
EBITDA
200000 200000

100000 Net Profit 100000

0 0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

Projected Cash Flow By Year ($000) Projected Net Income By Year ($000)
800000 200500
700000 200000
600000 Net Cash Flow 199500
500000
199000
400000
198500
300000
Cash Balance 198000
200000
100000 197500

0 197000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

Acme Oil | Business Plan | PAGE 21

FINANCIAL INDICATORS

The financial benchmarks have used Petrobas Argentina S.A. as a comparable since the company is public,
is operating an 80,000 BPD in a country with a low wage rate and does not engage in any unrelated
activities. Additional comparable indicators include the planned development of a 650,000 BPD facility in
Nigeria that has been adjusted for capacity and used for regional comparison.11

Financial Indicators
Year 1 Year 2 Year 3
Profitability %'s:
Gross Margin 76% 76% 76%
Net Profit Margin 33% 33% 33%
EBITDA to Revenue 36% 36% 36%
Return on Assets 47% 34% 27%
Return on Equity 100% 50% 34%

Financial Indicators
80%

70%
Gross Margin

60%

50% Net Profit Margin

40%

EBITDA to Revenue
30%

20%
Return on Assets
10%

0%
Year 1 Year 2 Year 3

11
Source: https://www.sec.gov/Archives/edgar/data/1449877/000119312514159779/d714879d20f.htm

Acme Oil | Business Plan | PAGE 22

REVENUES FORECAST

Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Forecast
Oil & Gas Production 593,380,500 593,380,500 593,380,500 593,380,500 593,380,500
Medical Fees 10,541,383 10,541,383 10,541,383 10,541,383 10,541,383
- - - - -
Total Revenue $ 603,921,883 $ 603,921,883 $ 603,921,883 $ 603,921,883 $ 603,921,883

Direct Cost of Revenue

Oil & Gas Production 142,350,000 142,350,000 142,350,000 142,350,000 142,350,000
Medical Fees 2,108,277 2,108,277 2,108,277 2,108,277 2,108,277
- - - - -
Subtotal Cost of Revenue $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277

Revenue By Year
700000
600000
500000
400000
300000
200000
100000
0
Year 1 Year 2 Year 3 Year 4 Year 5

Year 1 Revenue Monthly

52,000,000
51,000,000
50,000,000
49,000,000
48,000,000
47,000,000
46,000,000
45,000,000
44,000,000
43,000,000
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Acme Oil | Business Plan | PAGE 23

PERSONNEL FORECAST

Most expenses will be allocated towards development and sales. The employees will be paid competitive
wages so that the company can acquire and retain top talent and compete with large competitors. As the
company grows, it may work in options and bonuses into the salaries, but will focus on a straight full-time
salary with benefits for employees.

Personnel Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Personnel Count
CEO 1 1 1 1 1
CTO 1 1 1 1 1
COO 2 2 2 2 2
Admin. 300 300 300 300 300
Engineer 184 184 184 184 184
Operations & Maintenance 400 400 400 400 400

Hospital
CEO 1 1 1 1 1
CTO 1 1 1 1 1
Admin. 2 2 2 2 2
Medical Doctor 4 4 5 5 5
Nurse 16 16 20 20 20

Real Estate
CEO 1 1 1 1 1
COO 1 1 1 1 1
Admin. 30 30 30 30 30

Total Personnel 944 944 949 949 949

Personnel Wage
CEO 360,000 360,000 360,000 360,000 360,000
CTO 220,000 220,000 220,000 220,000 220,000
COO 220,000 220,000 220,000 220,000 220,000
Admin. 4,648,000 4,648,000 4,648,000 4,648,000 4,648,000
Engineer 4,784,000 4,784,000 4,784,000 4,784,000 4,784,000
Operations & Maintenance 5,200,000 5,200,000 5,200,000 5,200,000 5,200,000
Medical Doctor 268,000 268,000 335,000 335,000 335,000
Nurse 592,000 592,000 740,000 740,000 740,000
Personnel Costs
Employer Expenses $ - $ - $ - $ - $ -
Total Payroll $ 17,668,674 $ 17,668,674 $ 17,901,842 $ 17,901,842 $ 17,901,842

Acme Oil | Business Plan | PAGE 24

PROJECTED PROFIT AND LOSS

The profit and loss assume that the company will have margins at a comparable level to companies within
its industry. While management might not have incurred exactly for future operating expenses, they have
been assumed to reasonable reach comparable profit margins to industry comparables. The management
will operate with minimal expenditures to focus on R&D and commercialization expenses until the
company has sufficient income to support dividend distribution.

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5
Sales Revenue
Crude Barrels 10,950,000 10,950,000 10,950,000 10,950,000 10,950,000
Hospital Patients 36,500 36,500 36,500 36,500 36,500

Revenue 603,921,883 603,921,883 603,921,883 603,921,883 603,921,883

Subtotal Cost of Revenue 144,458,277 144,458,277 144,458,277 144,458,277 144,458,277
Total Cost of Revenue $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277

Gross Margin $ 459,463,606 $ 459,463,606 $ 459,463,606 $ 459,463,606 $ 459,463,606

Gross Margin/Revenue 76% 76% 76% 76% 76%

Expenses
Administrative and selling expenses 181,176,565 181,176,565 181,176,565 181,176,565 181,176,565
Other operating expenses, net 43,337,483 43,337,483 43,337,483 43,337,483 43,337,483
- - - - -
- - - - -
Total Operating Expenses $ 224,514,048 $ 224,514,048 $ 224,514,048 $ 224,514,048 $ 224,514,048
Wages & Payroll 16,292,000 17,668,674 17,901,842 17,901,842 17,901,842
Depreciation, Amortization & Taxes - - - - -

Net Income $ 198,365,961 $ 198,664,282 $ 200,183,059 $ 200,183,059 $ 200,183,059

Net Income/Revenue 33% 33% 33% 33% 33%

Acme Oil | Business Plan | PAGE 25

PROJECTED CASH FLOW

Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Cash Balance $ 36,755,000 $ 71,382,539 $ 232,698,683 $ 393,781,659 $ 554,864,635
Cash Inflows
Income from Sales $ 603,921,883 $ 603,921,883 $ 603,921,883 $ 603,921,883 $ -
Accounts Receivable $ - $ - $ - $ - $ -
Total Cash Inflows $ 603,921,883 $ 603,921,883 $ 603,921,883 $ 603,921,883 $ 603,921,883

Cash Outflows

Investing Activities
New Fixed Assets Purchases $ 150,050,000 $ - $ - $ - $ -
Inventory Addition to Bal.Sheet $ - $ - $ - $ - $ -
Cost of Sales $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277 $ 144,458,277

Operating Activities
Salaries and Wages $ 12,444,000 $ 17,668,674 $ 17,901,842 $ 17,901,842 $ 17,901,842
Fixed Business Expenses $ 224,514,048 $ 224,514,048 $ 224,514,048 $ 224,514,048 $ 224,514,048
Taxes $ - $ - $ - $ - $ -

Financing Activities
Loan Payments $ 37,828,019 $ 55,964,741 $ 55,964,741 $ 55,964,741 $ 55,964,741
Line of Credit Interest $ - $ - $ - $ - $ -
Line of Credit Repayments $ - $ - $ - $ - $ -
Dividends Paid $ - $ - $ - $ - $ -

Total Cash Outflows $ 569,294,343.40 $ 442,605,738.93 $ 442,838,906.43 $ 442,838,906.43 $ 442,838,906.43

Cash Flow $ 34,627,539.10 $ 161,316,143.57 $ 161,082,976.07 $ 161,082,976.07 $ 161,082,976.07
Operating Cash Balance $ 71,382,539.10 $ 232,698,682.67 $ 393,781,658.74 $ 554,864,634.81 $ 715,947,610.88
Ending Cash Balance $ 71,382,539.10 $ 232,698,682.67 $ 393,781,658.74 $ 554,864,634.81 $ 715,947,610.88

Year 1 Cash
200,000,000

150,000,000

Net Cash Flows

100,000,000

50,000,000
Cash Balance

-
Month 11
Month 7
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 8

Month 9

Month 10

Month 12

(50,000,000)

Acme Oil | Business Plan | PAGE 26

PROJECTED BALANCE SHEET

The projected balance sheet assumes that there are no dividend draws and all cash flow is re-invested
back into the company at the end of the year. The balance sheet does not assume any line of credits or
account receivables that are outstanding at the end of the year and that the company will have paid off
all liabilities. Likewise, it assumes that all accounts will pay within thirty-days and there will be no
delinquency of payments.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash $ 71,382,539 $ 232,698,683 $ 393,781,659 $ 554,864,635 $ 715,947,611
Other Current Assets $ - $ - $ - $ - $ -
Total Current Assets $ 71,382,539 $ 232,698,683 $ 393,781,659 $ 554,864,635 $ 715,947,611

Long-term Assets
Long-term Assets $ 362,875,000 $ 362,875,000 $ 362,875,000 $ 362,875,000 $ 362,875,000
Accumulated Depreciation $ 16,079,974 $ 16,867,474 $ 17,654,974 $ 20,274,902 $ 24,811,441
Total Long-term Assets $ 346,795,026 $ 346,007,526 $ 345,220,026 $ 342,600,098 $ 338,063,559
Total Assets $ 418,177,565 $ 578,706,208 $ 932,729,437 $ 1,091,192,484 $ 1,247,738,922

Liabilities and Capital

Current Liabilities
Accounts Payable $ - $ - $ - $ - $ -
Current Borrowing $ - $ - $ - $ - $ -
Other Current Liabilities $ - $ - $ - $ - $ -
Subtotal Current Liabilities $ - $ - $ - $ - $ -

Long-term Liabilities $ 413,539,357 $ 375,403,718 $ 335,516,135 $ 293,796,123 $ 250,159,501

Total Liabilities $ 413,539,357 $ 375,403,718 $ 335,516,135 $ 293,796,123 $ 250,159,501

Common Stock $ - $ - $ - $ - $ -
Retained Earnings $ 198,365,961 $ 397,030,243 $ 597,213,302 $ 797,396,362 $ 997,579,421
Total Capital $ 198,365,961 $ 397,030,243 $ 597,213,302 $ 797,396,362 $ 997,579,421
Total Liabilities and Capital $ 611,905,317 $ 772,433,961 $ 932,729,437 $ 1,091,192,484 $ 1,247,738,922

Acme Oil | Business Plan | PAGE 27

SENSITIVITY ANALYSIS

The sensitivity analysis can be considered the variance on the company revenue based upon a standard
deviation of +/- 15% of the current oil price of $54.19 used in the financial mode, ranging from a low of
$46.06 to a high of $62.31 or may be considered a capacity variance of 25,500 for the worst case at the
current oil price of $54.19.

Best Case Scenario (Revenue Increase by 15% )

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $ 682,387,575 $ 682,387,575 $ 682,387,575 $ 682,387,575 $ 682,387,575
Cost of Goods Sold $ 163,702,500 $ 163,702,500 $ 163,702,500 $ 163,702,500 $ 163,702,500
Gross Margin $ 518,685,075 $ 518,685,075 $ 518,685,075 $ 518,685,075 $ 518,685,075
Gross Margin/Revenue 76% 76% 76% 76% 76%
Operating Expenses $ 220,719,150 $ 220,719,150 $ 220,719,150 $ 220,719,150 $ 220,719,150
Wages & Payroll $ 17,668,674 $ 17,668,674 $ 17,901,842 $ 17,901,842 $ 17,901,842
EBIT $ 280,297,251 $ 280,297,251 $ 280,064,084 $ 280,064,084 $ 280,064,084
EBIT/Revenue 41% 41% 41% 41% 41%

Worst Case Scenario (Revenue Decrease by 15% )

Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $ 504,373,425 $ 504,373,425 $ 504,373,425 $ 504,373,425 $ 504,373,425
Cost of Goods Sold $ 120,997,500 $ 120,997,500 $ 120,997,500 $ 120,997,500 $ 120,997,500
Gross Margin $ 383,375,925 $ 383,375,925 $ 383,375,925 $ 383,375,925 $ 383,375,925
Gross Margin Revenue 76% 76% 76% 76% 76%
Operating Expenses $ 220,719,150 $ 220,719,150 $ 220,719,150 $ 220,719,150 $ 220,719,150
Wages & Payroll $ 17,668,674 $ 17,668,674 $ 17,901,842 $ 17,901,842 $ 17,901,842
EBIT $ 144,988,101 $ 144,988,101 $ 144,754,934 $ 144,754,934 $ 144,754,934
EBIT/Revenue 29% 29% 29% 29% 29%

Revenue
$3,000,000

$2,500,000 Best Case

$2,000,000

Most Likely
$1,500,000

$1,000,000
Worst Case

$500,000

$-
Year 1 Year 2 Year 3

Acme Oil | Business Plan | PAGE 28

 Year 1 Profit & Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales Revenue
Crude Barrels 930,000 840,000 930,000 900,000 930,000 900,000 930,000 930,000 900,000 930,000 900,000 930,000
Hospital Patients 3,100 2,800 3,100 3,000 3,100 3,000 3,100 3,100 3,000 3,100 3,000 3,100

Revenue 51,291,996 46,328,254 51,291,996 49,637,415 51,291,996 49,637,415 51,291,996 51,291,996 49,637,415 51,291,996 49,637,415 51,291,996
Subtotal Cost of Revenue 12,269,059 11,081,731 12,269,059 11,873,283 12,269,059 11,873,283 12,269,059 12,269,059 11,873,283 12,269,059 11,873,283 12,269,059
Total Cost of Revenue $ 12,269,059 $ 11,081,731 $ 12,269,059 $ 11,873,283 $ 12,269,059 $ 11,873,283 $ 12,269,059 $ 12,269,059 $ 11,873,283 $ 12,269,059 $ 11,873,283 $ 12,269,059

Gross Margin $ 39,022,936 $ 35,246,523 $ 39,022,936 $ 37,764,132 $ 39,022,936 $ 37,764,132 $ 39,022,936 $ 39,022,936 $ 37,764,132 $ 39,022,936 $ 37,764,132 $ 39,022,936
Gross Margin/Revenue 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76% 76%

Expenses
Administrative and selling expenses 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047 15,098,047
Other operating expenses, net 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457 3,611,457
- - - - - - - - - - - -
- - - - - - - - - - - -
Total Operating Expenses $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504 $ 18,709,504

EBIT $ 20,313,432 $ 16,537,019 $ 20,313,432 $ 19,054,628 $ 20,313,432 $ 19,054,628 $ 20,313,432 $ 20,313,432 $ 19,054,628 $ 20,313,432 $ 19,054,628 $ 20,313,432
EBIT/Revenue 40% 36% 40% 38% 40% 38% 40% 40% 38% 40% 38% 40%

Acme Oil | Business Plan | PAGE 29

 Year 1 Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Revenue
$ 51,291,995.5 $ 46,328,254.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5
New Current Borrowing
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Long-Term Liabilities
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Sale of Other Current Assets

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sale of Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Investment Received
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Subtotal Cash Received
$ 51,291,995.5 $ 46,328,254.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5 $ 49,637,415.0 $ 51,291,995.5

Expenditures

Expenditures from Operations

$ 31,053,563.1 $ 29,866,234.8 $ 31,053,563.1 $ 31,940,453.6 $ 32,336,229.7 $ 31,940,453.6 $ 32,336,229.7 $ 32,336,229.7 $ 81,940,453.6 $ 82,336,229.7 $ 81,940,453.6 $ 32,386,229.7
Subtotal Spent on Operations
$ 31,053,563.1 $ 29,866,234.8 $ 31,053,563.1 $ 31,940,453.6 $ 32,336,229.7 $ 31,940,453.6 $ 32,336,229.7 $ 32,336,229.7 $ 81,940,453.6 $ 82,336,229.7 $ 81,940,453.6 $ 32,386,229.7

Additional Cash Spent

Current Borrowing Repay

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
L-T Liabilities Principal Repay
$ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 2,590,960.2 $ 4,145,536.4 $ 4,145,536.4 $ 4,145,536.4 $ 4,663,728.4
Purchase Inventory
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Purchase Long-Term Assets
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Dividends
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cash Spent
$ 33,644,523.3 $ 32,457,195.0 $ 33,644,523.3 $ 34,531,413.9 $ 34,927,190.0 $ 34,531,413.9 $ 34,927,190.0 $ 34,927,190.0 $ 86,085,990.0 $ 86,481,766.1 $ 86,085,990.0 $ 37,049,958.1

Net Cash Flow

$ 17,647,472.2 $ 13,871,059.0 $ 17,647,472.2 $ 15,106,001.1 $ 16,364,805.5 $ 15,106,001.1 $ 16,364,805.5 $ 16,364,805.5 $ (36,448,575.0) $ (35,189,770.6) $ (36,448,575.0) $ 14,242,037.4
Cash Balance
$ 54,402,472.2 $ 68,273,531.2 $ 85,921,003.4 $ 101,027,004.6 $ 117,391,810.1 $ 132,497,811.2 $ 148,862,616.8 $ 165,227,422.3 $ 128,778,847.3 $ 93,589,076.7 $ 57,140,501.7 $ 71,382,539.1

Acme Oil | Business Plan | PAGE 30