Opportunities for Margin Expansion – With the upcoming addition of 11,742 barrels per day
capacity at the Class I Conroe, TX well, TGD will soon have the operational capability to take
advantage of higher margin non-hazardous industrial waste business. TGD will also have 3
additional wells permits with an added capacity of up to 35,226 barrels per day.
Opportunities for Growth – TGD’s current average monthly utilization has been 5,442 barrels
per day. TGD has total current drilled capacity of 15,000 barrels per day and permits for an
additional 5,000 barrels for day. With a projected total future capcaity of 20,000 barrels per day,
a significant growth opportunity exists while there are no large incremental costs or capital
expenditures required outside of this offering to growing the business.
Strong Industry Trends and Customer Demand – The tremendous growth in the energy sector
has driven demand for TexCom’s oilfield service customers. These customers are experiencing
high levels of utilization and end-user demand for their services by the dominant energy and
power companies. [Quantify with market size]
Blue Chip Customer Base – TexCom’s customers include some of the leading energy and
power companies, including Anadarko, ConocoPhillips and Chevron as well as many wellservicing
and oilfield-servicing industry. In addition, management believes TexCom is a sole supplier to many of these customers’ waste disposal needs. Since recently undergoing a series of operating and compliance audits by key clients, the Company has been added to approved vendor lists for respective clients, some of whom have large needs for Class II non-hazardous and NORM disposal services.
Expandable, Centrally-Located Waste Disposal Sites – TexComs’s disposal wells are
geographically well situated within close proximately to many of the active rig sites within
Southeast Texas and the Gulf of Mexico. The existing wells operate efficiently, require no
extraordinary maintenance and have a long remaining useful life.
Seasoned Management Team – The Company has an experienced management team with a
combined experience of more than 100 years in the oil and gas, petrochemical, biodiesel, plastics
and other industries.
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