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Canada, 0... "Executive Summary Tairex has spent considerable energy and risk in taking the project to the stage it is today. It began with a trip to Thailand in June 1998. On visiting the DED operations in Northern Thailand it was obvious that this area was oil prone. It was also obvious that there was a number of factors that had curtail the development of the 7.5 million acres to area less than 200 thousand acres. Those were the fact that the area was politically unstable in the pass; remote making it difficult to prove economics; limited industrialisation in the past in the area, and probable the most important, due fact that the majority (if not all) reservoirs found to date on shore Thailand are rather small for major standards. It was now June 1998 and number things had changed. One the Chiangmai international airport had been open for 2 years and Chiangmai was now the second largest city in Thailand and growing rapidly as with the area. In short the area is industrialising and is in the need of energy and by-products from hydrocarbons. All of this need has to be presently served by the south refineries some 900 kilometers away. This is highly uneconomical to truck the product to the north, as it is uneconomical to truck oil to the south to be refined, when the fastest growing demand is in the north. The most important change that will make it economic to go after the known reserves in the north is 3D seismic. It is one-hundredth the cost, it was five years ago and dropping daily as this technology is highly link to computer horsepower and available programs (which are more numerous everyday). These changes have sparked Tairex interest and the fact that the DED has held 7.5 million acres since the 1950’s. In the past, the DED, not known for understanding petroleum, used this as a retirement haven. They would ask for funding that far exceeded what they needed for projects and pocket the difference (please note this is highly sensitive and should not be open discuss for obvious reasons as no one wants to admit this) and because economics the lands held by the DED have never been develop to there full potential. The DED is now today cut off from any more funding from the government and must seek outside sources to explore and develop their lands. Tairex has made consider strides, that include bring a team of three Generals and four Colonels to Calgary for discussion on the exploration and development of their blocks in July 1998. Tairex at this time presented to DED, a memorandum of understanding (MOU) and return to Thailand in mid August to continue the discussions on how to best develop the DED blocks. Tairex continued to do research and build a sound understanding of the geological and reservoir nature in the area. In February, Tairex return to Thailand to begin discussion on how to structure a full proof plan, to develop the blocks held by the DED. This lead to the clear understanding that in order to bring investors to the table a proper feasibility must be done that included involving an industry world wide recognised firm to give their stamp of authentication to insure investors understood the risks, which are low considering there is oil to surface in number of areas. No one has ever disputed the fact there was oil it just the economics that has prevented the development of the reserves. However, until Tairex no one has had planned to develop the reserves in Northern Thailand. What Tairex learn from February to May 1999, was that there are a number of departments involved overseeing the exploration and development of hydrocarbons. First all mineral rights are held by the Department of Mineral Resources (DMR), which falls under the Ministry of Industry. Therefore, the exploration and development of the DED held blocks are somewhat governed by the DMR, even though the DED (the DED falls under the Ministry of Defense) has been give these blocks with an unlimited life. Another department that has huge influence on how energy is developed and answers directly to the Prime Minister’s Office, is the National Energy Policy Office (NEPO). Tairex has held several meetings with both departments and have gain full support for our project; in fact both departments have commended to Tairex on our vision and approach to the project. Tairex also has had a number of discussions with various support organizations willing to back the project, which includes; Rolls Royce, GE Capital, Edmund deRothchild Group, and services contractors that have all given their support financially and aided in providing information that has helped in the development of ideas for this project. Tairex has review the possibility with joint venture partners which includes Texaco Exploration (Thailand), the Petroleum Authority of Thailand, and Harrods Oil (Thailand), which have all indicated support. The list of how many other support organizations from various government departments and support companies is growing daily. Where do We Go from Here The next step is to raise the necessary funds for “The Feasibility Study”. This will require approximately US$3 million dollars. Tairex would be willing to give very favourable terms to the person(s) or organisation(s) that would be willing to put these funds up. Tairex is looking for US$2 million dollars for “the Feasibility Study”, Tairex itself will put up one million US dollars in trust to the DED to begin “The Feasibility Study”. Tairex would like to raise the remainder US$2 million dollars for “The Feasibility Study” from outside sources, in exchange for overall working interest in the project, on more favourable terms, than any other funds raised for the project. Tairex has spent over US$500,000 to date to bring the project to where is today and the project is about to proceed to the next step. Rather than risk 100% alone and take all the upside we would like share all our hard work with a equity/investment partner that sees the same vision we de and share in the upside. To move this project along in a timely fashion and take advantage of the current economic situation, in Thailand and the oil industry we need to move as quickly as we can. This will best be done by taking the next necessary step and open office (subsidiary company) in Thailand as soon as possible. In order to bring the DED and other various departments to our board table and complete the signing rights to begin a six-month “Feasibility Study”. The six month feasibility study will be certified by Gaffney, Cline and Associations. Who are consider an elite consulting firm in the investment community and energy industry world-wide and have offices throughout the world including Singapore. Their stamp of authenticity, will not only insure the study for it accuracy and proved the ultimate investor confidence. The upside for the US$2 million for the feasibility study we are requesting for would be negotiable, as we will not require all of the US$2 million immediately. In fact, we only require approximately a commitment for US$500,000 before the end of August and the remainder of the funds to follow over the course of 8 months. It is highly likely we will not require the full US$2 million and funds left over can be place toward the project for a further upside or return as decided. Phase One The next step is to raise the necessary exploration and drilling funds for the exploration and drilling which i...
