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zeekhoe Member Level  Wednesday, 04/03/19 04:05:50 PM
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MDM Permian, LLC was registered in Texas in 2017 by Mr. Michael L. Rafael. The primary objective of the company is to build value in the Permian Basin of West Texas and Eastern New Mexico. This will be accomplished through strategic lease acquisition, drilling and producing oil and natural gas, purchase of existing production, re-working old oilfields for overlooked reserves, and waterflooding energy depleted zones. MDM Permian, LLC recently completed a reverse merger and is now a publicly traded company (OTC: MDMP). MDM Energy, Inc. is a wholly
owned subsidiary operating company of MDM Permian, Inc. MDM Energy, Inc. was incorporated in the state of Texas in 1981. The company has drilled over 125 wells in the Illinois Basin over the last decade and had been
involved in all aspects of oil and gas development in the basin for over 35 years. Asfounder and President, Michael L. Rafael has led the company since inception and takes an active, hands on approach to the business. Mr. Rafael has been directly involved with the drilling and or Completion of over 350 oil and gas wells in Illinois, Kentucky
and Texas.

1. Short Term Funding
MDM Permian, Inc. expects to raise sufficient capital to implement the business plan and provide the company short term operating capital and drilling funds for an Illinois oil well. Royalty interests will be purchased from Illinois Basin oil wells, providing production revenue. The company will also initiate the process of providing a Regulation A offering for up to $20,000,000. MDM Permian, Inc. is currently negotiating for lease and drilling rights in 3 counties, in 2 separate portions of the Permian Basin.

2. Deposits for Oil and Gas Leases
The company will secure leases in the Delaware and Midland Basins of West Texas. The leases in Irion County consist of approximately 18,000 to 24,000 acres. The asking price for the acreage is currently in the $350. to $450. per acre range (depending on total acreage purchased and negotiated) and will come to MDM at 75% net. The acreage has production potential in the San Andreas, Clearfork, Wolfcamp, Canyon Sands, Strawn, and the untested Mississippian. There are over 100 plugged Canyon sand wells located throughout the prospect area. MDM has a Petroleum Engineer Assessment for the Irion County acreage at 80,000,000 barrels of recoverable oil and gas from these stacked pays. Once leased, this could establish a $4 billion asset for the company (at current pricing). Surrounding leases are primarily held by Apache, Laredo, Pioneer, and Devon. The Crockett County leases consist of approximately 2500 acres. The acreage is held by CRP who will be instituting a waterflood on the shallow Graysburg formation. MDM is negotiating a farmout for the deeper acreage below the San Andreas and currently has a signed LOI with CRP. This acreage offers value with stacked pays from the Wolfcamp through the Ellenburger. The company also is conducting due diligence research on leases in Lea County, New Mexico and is close to signing an LOI with the current owner. Attorneys will be needed to execute the necessary documents as well as conduct title searches prior to closing.

3. Due Diligence, Legal Services.
A due diligence package will be necessary to provide to potential Funding sources for the 1st round of major funding. The due diligence is conducted by a legal firm in conjunction with our corporate legal team. The company represented by Jeff McPhaul, with the Winstead Law firm in Dallas, Texas.

4. Secure 1st Round Funding.
1st round of funding for the Permian operations will consist of $20,000,000. Funded via a Regulation A public offering. The funds will be allocated to secure leases, drill and complete oil and gas test wells, build infra-structure, and cover administrative accounting legal services and commissions. MDM has assembled a team of professionals
with extensive experience working in the Permian Basin.

5. Begin the Drilling Program.
Initial drilling on the leases acquired will consist of a minimum of 2 vertical wells to a depth of sufficient to test the San Andreas, Clearfork, Sprayberry, Wolfcamp, Cisco, Canyon, Strawn, and Atoka. Each zone contains multiple completion benches that will need to be evaluated for completion. Scientific data will be acquired (seismic, logs,
cores, DST’s), and determinations made regarding placement of wells and potential for horizontals. The zones of interest will be identified by our team from the science generated from in-depth regional studies, the logs of the wells drilled and recommendations from third party engineers and technical team (LAS). Each well drilled becomes a data point for our engineers to continuously update the reserve base.

6. Establish Cash Flow From Production.
Once the wells are drilled, evaluated and completed, revenues from the wells is expected to reach a net of approximately $500,000. To $1 million per month. Operating and administrative expenses are projected at $100,000. per month. On the low end a net revenue will be expected in the range of $6mm to $12mm annually. It may take as long as 1 year to establish the full cash flow potential.

7. Secure 2nd Round Funding.
The second round of funding will supply additional funds for continued drilling of development wells and further lease acquisitions. Second Round Funding will begin at $35 million to $50 million through a combination of stock offerings and JV’s and partnerships. Throughout the process reserve estimates will be updated and added to the company bottom line. Production revenue will begin to add to available resources for the building of further value.

8. Exit Strategy
Once production and leasehold value are established and the company holds significant acreage, a sale of assets becomes the most viable option. Of course, shareholders may exit at any time by simply selling shares on the open market. Management will endeavor to build a robust trading market for our shares as well as having a goal of moving the company to alternate platforms for trading shares (NYSE, Nasdaq, etc.).

For more information please contact:
MDM Permian, Inc.
Investor Relations
14275 Midway Rd. STE 220
Addison, TX 75001

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