#DMAN:GEO: GeoEnchanced Technologies, Inc. Updates Shareholders https://www.geoenhanced.com While what GeoEnhanced brings to the table is decidedly different than what many of the Demand Brands shareholders were expecting, we are an experienced team with backgrounds in running successful public companies, oil and gas operations, and geology. GeoEnhanced combines the upside of a proprietary technology with the strong performance of an energy company. We look forward to providing shareholders with regular updates and we move forward in the coming months. https://www.otcmarkets.com/stock/DMAN/news/GeoEnchanced-Technologies-Inc-Updates-Shareholders?id=244888 GeoEnchanced Technologies, Inc. Updates Shareholders Gun Barrel City, TX, Oct. 31, 2019
-- via OTC Markets -- Demand Brands, Inc.
(OTCPK: DMAN), (“Company” or “DMAN”), released a shareholder update today
following it's recently completed share exchange agreement between Demand Brands, Inc. and GeoEnhanced Technologies several weeks ago. Management has been actively involved in executing several important milestones discussed herein. Since most of our shareholders are unfamiliar with the operations of GeoEnhanced, we felt it appropriate to commence our shareholder interaction with this letter of introduction and set the
stage for what the company expects to accomplish over the coming year.
First, since the share exchange, we have been engaged in a lot of house cleaning issues with respect to Demand Brands. The transaction is being treated as a reverse merger with GeoEnhanced as the surviving entity for accounting and reporting purposes. We have had to review all legacy actions to revise all of the OTC Markets disclosures and put in place new agreements with attorneys, accountants and the transfer agent while also managing legacy operations. A major accomplishment of the transaction entailed getting a lot of the legacy convertible stock held by third parties negotiated into a cancellation.
This time intensive process involved a lot of negotiating and paperwork. Fortunately, much of that business is now behind us. GeoEnhanced, by way of introduction, is a technology services company engaged in seismic mapping. We have developed a unique platform that allows us to create detailed “electro-seismic” images of subsurface formations. What makes our technology more competitive is that we have several unique features:
? Using self-generated P and S waves, we can map to a depth of around 40,000
? Our technology can show the specific chemical composition of the strata. For
example, it can differentiate between oil and water, quartz and gold, and even
detect gas pockets.
? Our imaging also shows directional movement of the formation, i.e. the flow.
This feature is particularly useful when drilling for oil and gas as it allows for more precise placement of wells to maximize production volumes. Our current business model involves multiple revenue streams. First, we actively market and sell seismic imaging services to third parties. Our clients can be oil companies looking to drill, mining companies looking for ore deposits, or municipalities looking for fresh water sources. Generally, we charge a flat fee based on the acreage
being imaged plus a percent of revenues generated from using the data we provide. For example, on a current South Texas running oil project, we will receive a percentage on the oil production income into perpetuity.
Second, we are actively seeking to acquire our own oil and gas leases to establish production. There are countless under-performing oil and gas properties in the U.S. Many of these once yielding high volumes, but the formations lose pressure, the wells get clogged, or the oil runs out. These “stripper wells” generally produce a few barrels of
oil per day and operate close to break even, making them relatively inexpensive acquisitions. Our plan is to selectively target and acquire leases that we believe have drilling potential and then, using our technology, drill new wells that can produce at a significant increase to value. With respect to current operations, in early 2019 we shifted from a research and development stage and commenced generating revenues from seismic services. Sales demographics have been growing from our corporate location in Gun Barrel, Texas.
Geo's South Texas project, which we have imaged earlier this year should go into production in the coming months as our mapping showed significant resources that the prospect owners have been acquiring tens of thousands of neighboring acreage, which we expect to map as well as generating override income from those producing properties.
GeoEnhanced also owns an oil lease in the Klein Ranch in Central Texas which we have imaged and are working towards drilling sometime in early 2020. In this vein, we are actively pursuing the acquisition of several additional oil and gas leases. This effort entails performing preliminary tests, reviewing historical production data, looking at the geology, then negotiating favorable terms.
Finally, we are in the process of filing for several patents on our technology. One involves our technology application and two involve specific pieces of equipment designed in-house. We are quite excited about a drone system in the final development stage that will enable us to deploy multiple custom-designed drones into the field to image large sections of land in a fraction of the time. Currently, we use field teams and ATVs but often the terrain is difficult to navigate, which impacts the speed with which land that can be surveyed. The drone system, which is capable of running five drones simultaneously, allows the team lead to pre-program the target locations, then deploy all five to the field. Using drones, a two-person team will be able to get done 20-50 times
the amount of imaging per day over the current manual system. The drones can also be programmed to detect hydrocarbon leaks, which creates another opportunity to survey pipelines Operationally we will continue to keep costs under strict control. Financing structures are earmarked for equipment acquisition, drone implementation and acquiring company owned leaseholds for production of resources. We also are looking to get our historical financial statements audited and return to a fully-reporting status with the SEC. While no definitive timeline has been set, we anticipate starting this process by the end of the year. While what GeoEnhanced brings to the table is decidedly different than what many of the Demand Brands shareholders were expecting, we are an experienced team with backgrounds in running successful public companies, oil and gas operations, and geology. GeoEnhanced combines the upside of a proprietary technology with the strong performance of an energy company. We look forward to providing shareholders with regular updates and we move forward in the coming months. About Geo Enhanced Technologies, Inc.
GeoEnhanced Technologies, Inc. is a South Dakota company headquartered in Gun Barrel City, Texas, and engaged in both oil and gas exploration as well as using a proprietary electro-seismic technology to facilitate subsurface mapping to depths of 40,000 vertical feet. The company is positioned as service provider to the energy and mineral exploration industries where it charges fees plus revenue overrides for employing its technology to create seismic mapping. In addition, GEO is actively
acquiring oil and gas production leases which it intends to map using its technology, drill exploratory wells to confirm the mapping, then either resell or further develop and produce the properties. For additional information, see the Company’s website
at www.geoenhanced.com. Safe Harbor Act:
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the
terms "believes", "belief", "expects", "intends", "anticipates", “projects” "will", or "plans" to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company's reports and registration statements filed with the Securities
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