Burner Technology Exec Summary 4.1

8/14/2019 Burner Technology Exec Summary 4.1

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BURNER TECHNOLOGY INCORPORATEDA Hydraulic Fracturing Service Company

Green isnt green unless its in the Black

[email protected]


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BURNER TECHNOLOGY Executive Summary

_ INTRODUCTION _ Burner Technology Inc. is a recently formed Wyoming Corporation with offices in San Diego, CA. BurnerTechnology intends to satisfy the rapidly growing need for cost-effective and environmentallyfriendly processing solutions for toxic brine produced by hydraulic fracturing in the oil and gasindustry with proprietary Green technology. Burner Technology will provide on-site brine processingservices and electricity utilizing this proprietary technology.

Induced Hydraulic Fracturing, or fracking, has enabled the current boom in the extraction of shale oiland shale gas reserves in North America. While providing a means to feasibly access previously

under-utilized oil and gas resources, this method of extraction is controversial and has several challenges.BURNER TECHNOLOGY addresses several of the challenges inherent in this method of extraction witha solution that does not currently exist in the marketplace.

_ BACKGROUND _ Since 1998 at the Barnett Shale, a geological formation in Texas with extraordinary quantities of so-calledtight gas reserves, a technique has been used by the oil and gas extraction sector allowing for theeconomical recovery of previously unattainable subsurface deposits of gas and oil. This technique is calledInduced Hydraulic Fracturing, often referred to as hydrofracking or fracking.

Induced Hydraulic Fracturing, or fracking, is a process used to increase or restore the rate at whichfluids, such as petroleum, water, or natural gas can be recovered from subterranean natural reservoirs.Fracking enables and significantly increases the production of natural gas and oil from rock formationsdeep below the earth's surface. See Appendix A.

Recoverable reserves of gas and oil in shale formations in the lower 48 states of the US are estimated bythe International Energy Agency at 750 trillion cubic feet, in addition to massive reserves of coal bedmethane and tight gas. Fracking is currently the key method making their extraction viable. Fracking isnow being utilized in the US and elsewhere, particularly as these resources are less concentrated than

conventional oil and gas resources.

This oil and gas activity has led to a boom in production and lower fuel prices. This has benefitted theeconomy overall and created direct and indirect employment gains, significant private royalty earnings,as well as increased revenues to local, state and federal agencies. It is also reducing national security risks

by lessening the need for imported fuels.

However, fracking for shale fossil fuels has become a controversial and contentious activity, reducing the profit potential for operators and direct beneficiaries alike. BURNER TECHNOLOGY offers asolution to the significant challenges related to the oil and gas sectors power, water and wastewaterissues.


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One of the main challenges with fracking is the enormous amounts of water required to initially frack andthen operate a well. Water is an essential component to successful deep shale gas and oil development. In


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the Barnett Shale formation, an average of 2.5 million gallons of water is used to drill a well with the water

being sourced from local municipalities, regional water districts, river authorities (via water purchase), rivers, ponds, lakes and groundwater wells. Maintaining access to water is crucial to the success of operators.

A mix of water, sand and various chemicals (fracking fluid) is pumped into the wells half of whicheventually returns to the surface where it must be safely stored and disposed of. This wastewater, most often

called produced water, is stored in ponds for partial evaporation, with the remainder being shipped offsitefor disposal. Disposal is expensive and contentious. Risks for environmental contamination are high. Themost common disposal method is the transportation and re-injection of the brine into non-producingwells.

The tremendous volume of produced water from wells creates challenges to operators. Produced water is transportedfrom drill sites by tanker trucks at significant cost. Traffic congestion, noise and damage to roadways caused

by these vehicles have become points of contention with local permitting entities and residents in proximity todrilling operations.

_ SOLUTION _ The Oil and Gas industry in North America requires a cost-effective solution that minimizes the numerousrisks associated with fresh water needs and the produced water from fracked wells.

BURNER TECHNOLOGY INC. has negotiated the acquisition of the exclusive rights to the technology inthe Oil and Gas Hydraulic Fracturing Industry from Burner Technology and Research Corp. (BTR). BTR hasdeveloped the technology and the prototype over the last several years. This acquisition allows BurnerTechnology, Inc. to proceed with the construction of a full size brine concentrating and electric generating

system to be placed in service upon completion.

BURNER TECHNOLOGYs modular, mobile and low cost BCS systems will be used to provide brine processing and concentration to operators at the well sites. These systems are able to utilize multiple fuelsources, including current waste gas from wells. They will lessen fresh water requirements and the negativeimpacts of transporting water as well as provide low cost electricity to the drill sites. See Appendix C


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_ C APITALIZING _ BTR has developed a Waste Heat Powered Thermal Brine Concentration System (BCS). BTR Inc. is aCalifornia based Research and Development company with experience in delivering low temperature, ambient

pressure water desalination and distillation systems. Recently completed projects include:

1. A solar thermal powered sea water desalination plant for the bottled water indus try:

Solar Thermal Powered Sea Wate rDistillation/ Desalination Sys tem

(San Diego, Californ ia)

2. A proof of concept waste heat powered, mobile sea water distillation/desalination un it:

Waste/Exhaust Heat Powered BCS Unit.(San Diego, California)

BTR has commenced development of an advanced variation of its BCS Distillation system for use in theconcentration of fracking waste water utilizing waste heat and low cost materials.


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_ BRINE CONCENTRATION SYSTEM _ The Brine Concentration System (BCS) utilizes the natural process of evaporation and condensation, or thehydrologic cycle, to extract contaminants from brine or salty fluids. Unlike filtration systems that requirelarge amounts of electricity to push brine through filters, the energy input for the hydrologic cycle is heat.Burner Technology has developed a low pressure (1 atmosphere), low temperature (140 ! F-180 ! F) systemca pa ble of desalinating brine using low grade waste heat from solar thermal systems or gas powered electricgenerators, including micro turbines. Due to the BCS design, significantly lower cost materials such as plasticrather than titanium, are used in the construction of the system. The BCS system is designed to beconstructed within two 40 shipping containers lowering both manufacturing and transportation costs.

The BCS system is not dependent on any one type of energy source it can be energized by multiple fuelsources including onsite natural gas. Waste heat from electricity producing turbines provide the energy forthe hydrologic cycle of the system, with electricity as a valuable by-product. This waste electricity is thenavailable for the onsite drilling and pumping processes or for sale back to the local power grid.

Advantages of the BCS system include:

1. Low capital expense 2. Utilizes low grade waste heat (140 ! F-180 ! F)3. Produces electricity4. Modular, mobile and expandable depending on site-specific requirements 5. Operates at atmospheric pressure 6. Easy to clean and operate 7. Low temperature allows for lower-cost plastic instead of titanium construction 8. Meets sustainable technology criteria: addresses water-constraint and closes the energy loop 9. Reusable10. Significantly reduces transportation costs of water and brine delivery and removal

Burner Technology will build the first full size BCS unit for testing purposes. This first unit will requireroughly $1.1 million in investor capital for design, construction and testing. Burner Technology expects todeliver the first full size operational unit within 6-12 months.

After the development of the first test unit, Burner Technology will require an additional $3.9 million ininvestor capital over the following two years to build and place BCS units in service.

Burner Technology revenues will be generated by charging clients for fracking fluid brine processing andthrough the sale of electricity.


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-MANAGEMENT-

BURNER TECHNOLOGY, INC.s management team brings to the Company experienced personnel in thedevelopment of new businesses. Management has been involved in several start-up companies. BURNERTECHNOLOGY, INC.s ultimate success depends on the quality of its management. Specifically,management must provide:

A thorough knowledge of local conditions and opportunities; A management approach emphasizing cost control; and, A strong capability to react quickly and forcefully to problem situations should

they arise.

The management team and advisors that BURNER TECHNOLOGY, INC. has assembled have the skills,experience, and maturity of judgment to provide effective management to the Companys operations.

Officers and Directors:

The following table sets forth the names of the members of the Companys Board of Directors, ExecutiveOfficers, and the position with the Company held by each.

Name Position

Carroll Newman President, DirectorPaul Wynns Vice President Product Development, DirectorJason Sunstein Vice President Finance, Director

Each director is elected to hold office for a one-year period or until the next annual meeting of shareholdersand until his/her successor has been qualified and elected following the one-year of service. The Officersserve at the discretion of the Companys directors. There are no understandings between any of the directorsor officers of the Company or any other person pursuant to which any officer or director was or is to beselected as an officer or director.

The following is a brief account of business experience for each director and executive officer of theCompany.

CARROLL NEWMAN JR, PE PRESIDENT AND DIRECTOR

Mr. Newman has spent thirty five years in the domestic and international petroleum service sector. A

registered professional engineer consistently recognized for exceeding financial, operational and businessdevelopment goals in technical and management positions, his assignments have included major start-ups inthe USA, Latin America, Africa and the Far East.

Most recently, Mr. Newman was a consultant for Ely and Associates primarily addressing their fracturing, aswell as other product lines, cementing, stimulation, tools, testing, industrial cleaning and transportation. Whileconsulting for Ely and Associates, Mr. Newman authored the fracturing principles and practices manual forGulf International in the Sultanate of Oman and developed a pressure pumping manual for Saudi Aramco.


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Previously, Mr. Newman was Vice President of Tucher Energy Services, Inc., where he established the firstmulti-product line company for Tucker Industries in the USA developed specifically for the British Petroleum

North American Gas Division. Responsibilities included design, oversight of fabrication and field testing of an$85mm fleet of stimulation, wireline and coiled tubing equipment.

Prior to Tucker Energy Services, Inc., Mr. Newman held various postions with Trican Well Services, Inc.,Vanguard Energy Group, Inc., Jet Star Energy Services, Inc., Baker Hughes Integ, Inc., British Petroleum, Inc.and Halliburton, Inc.

Mr. Newman obtained his BSME in 1979 from Portland State University.

PAUL WYNNS: VICE PRESIDENT OF PRODUCT DEVELOPMENT AND DIRECTOR

Paul Wynns is a product and project manager with cross-disciplinary experience in military aviation anddefense aerospace technology programs. His performance in military, small, and large business leadershiproles has earned numerous executive-level commendations and awards. Mr. Wynns graduated with distinctionfrom the U.S. Naval Academy and was selected for the U.S. Navys graduate education program. Hiseducation includes an aerospace M.S. degree from Stanford University and an internship at the NASA AmesResearch Center. Mr. Wynns military service as a naval aviator includes combat tours in support of OperationEnduring Freedom and an assignment as the lead S-3B Viking instructor pilot in the US Navy. He hasattended the U.S. Navys Naval Strike and Air Warfare Center "TOPGUN" academic curriculum as an invitedcivilian attendee. His training and educational background includes multiple technical and programmanagement certifications from the Defense Acquisition University.

Mr. Wynns specializes in the leadership and development of small, agile, cross-functional project teams withstreamlined technical processes and rapid decision-making capabilities. He has held numerous aviation andtechnical management positions including quality assurance oversight for a 200-employee U.S. Navy aircraftmaintenance department. He has led military aircraft post-maintenance check flight programs with anemphasis on installation, maintenance, and evaluation of General Electric TF-34 turbofan engines. Mr. Wynnsalso managed the military aviation safety, training, standardization, and operating procedures program for all

Navy S-3B Viking aircraft, world-wide, and has authored sections of the aircrafts flight and weapon systemmanuals.

Mr. Wynns recent civilian management experience includes leadership of multiple aircraft system integration programs where his business management responsibilities included subcontract negotiation, earned valuemanagement system implementation, risk reduction/management, budgeting, scheduling, and revenue

planning. Mr. Wynns area of technical management focus is aircraft systems integration, where hisexperience includes mechanical and aerodynamic design, payload packaging and installation, and theoversight, editing, and authoring of documentation submitted to airworthiness review boards for safety-of-flight certification.

JASON SUNSTEIN VICE PRESIDENT AND DIRECTOR

Mr. Sunstein brings finance, mergers and acquisitions and general management experience to BURNERTECHNOLOGY, INC. Mr. Sunstein also serves as Vice President Finance and Director of Earth DragonResources, Inc., a publicly-traded precious metals company. Since 1990, he has participated in a broadvariety of both domestic and international structured investments and financings, ranging from debt and

preferred stock to equity and developmental capital across a wide variety of infrastructure and corporatefinancings. He has been involved in numerous start-ups, turnarounds and public companies. Prior to


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BURNER TECHNOLOGY, INC., Mr. Sunstein co-founded ubroadcast, Inc., now known as the SanteonGroup, Inc., a publicly-traded technology company headquartered in Northern Virginia with offices in Reston,VA, Tampa, FL and Cairo, Egypt. Santeon offers products and services in Agile training and transformation,healthcare and media. Prior to ubroadcast, Inc., Mr. Sunstein founded one of the first publicly-traded VoIP(Voice over Internet Protocol) companies in the United States. Mr. Sunstein serves on the Board of Directorof several companies, as well as the Advisory Board for the National Nutrition Reform, a non-profitorganization in San Diego, California. He attended San Diego State University where he majored in Financeand has held NASD Series 7 (General Securities Representative) and Series 63 licenses.

Advisory Board:

Dr. David Boylan

PhD. in Chemistry from the University of Hawaii and a post doctorate at the University of California,Berkeley. At Hawaii his thesis involved the isolation, structure determination and synthesis of the first marine

bio-toxin, at Berkeley he worked with NASA and DR Melvin Calvin (a Nobel Prize Recipient), to develop procedures for the return and the analysis of Luna samples.

Dr. Boylan has a diverse background in chemistry, biology and engineering. His work as a scientist at WoodsHole Oceanographic Institution involved the organization of a group of scientists to study biochemicalsinvolved in communication between marine organisms. The effect of chemical pollution on normal marineorganism behavior was also studied. He also worked at Greenfield Environmental where he set up a laboratoryfor the development of methods to chemically or biologically detoxify contaminated ground and water areas.An off shoot of this work lead to the formation of a laboratory to study and develop biological methods for theconversion of synthesis gas to liquid fuels.

In his latter years Dr. Boylan has devoted his work to the development and implementation of renewable

energy systems. He worked as the director of bio-systems at United Energy where he developed andimplemented a novel; low temperature solar operated alcohol fuel distillation system, and developedintegrated bio-systems for the production of water, fuels and food. A very promising genetics program wasinitiated that had the potential to produce important biochemicals such as the enzymes used in the conversionof starch to sugar. At a later date he was involved in development and testing of new methods for generatingelectricity including concentrating photovoltaics and integrated co-generation systems. At Del Mar Farms, Dr.Boylan designed and implemented an integrated fish/ hydroponics vegetable farm using recycled water. Thefarm concept was successfully applied at a commercial level. It was during this time that the initialdevelopment work for the low temperature, ambient pressure vapor distillation system, also known as aSupplemental Recovered Thermal system (SRT), currently being utilized by Burner Technology wasdeveloped.

Dr. Boylans work and concepts have recently and successfully been implemented in the bottled waterindustry utilizing solar thermal energy and sea water to produce a high end bottled water.

As the Chief Scientist for Burner Technology and Research Corporation, Dr. Boylan has designed andsuccessfully tested the Brine Concentration System utilizing waste heat.


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AMAN (Alex) SINGHA

Mr. Singha has successfully worked with management of various companies from developing strategy,acquisitions and divesting of assets, operations, legal, financing and fundraising oversight, concentrating inthe United States energy sector for the last nine years. He has worked with various leading venture capitalfirms (Kleiner Perkins, Draper, NEA, etc.) having investors invest alongside such firms in their portfolio

companies. He recently served as President and COO of AuraSound, Inc. , where as a member of themanagement team, increased sales 10 fold to $76MM and reduced SG&A by 5 times to 5.5% of revenue overthe course of 12 months. Prior to this he practiced corporate law for 8 years and received a JD from NYLS,BA in Political Science from Simon Fraser University and is published in The Venture Capital LegalHandbook Industry Insiders on the Laws and Documents That Govern VC Deals, Raising Capital, Mergers& Acquisitions & More. Including transactions where he served as attorney, in total, he has participated intransactions valued close to US$5 billion


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_ E XIT STRATEGY _ Consistent with the strategy of numerous emerging growth companies successful in maximizing value forstakeholders, Burner Technology, Inc. may opt for one of the following two exit options:

1. Sell to a major participant in the $400B+ oil and gas sector.

2. Public offering of stock, or other recapitalization.

Appendices

Appendix A Induced Hydraulic Fracturing 1. A well is drilled vertically to the desired depth, then turns ninety degrees and continues

horizontally for several thousand feet into the shale believed to contain the trapped natural gasand oil.

2. A mix of water, sand, and various chemicals is pumped into the well at high pressure in order tocreate fissures in the shale through which the gas can escape.

3. Natural gas and oil escape through the fissures and is drawn back up the well to the surface, whereit is processed, refined, and shipped to market.


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Appendix B Wastewater Management

Wastewater (also called "flowback water" or "produced water") returns to the surface after the fracking processis completed. It needs to be stored and disposed of safely in order to keep these contaminants from pollutingour air and our water. Half or more of the fracking fluid, along with water from the rock formation (which cancontain heavy metals and other minerals), typically returns to the surface for disposal, where it is stored in

ponds. These ponds can unfortunately leak, and evaporation of volatile chemicals can cause local air pollution.

Disposal is expensive, both in financial and energy terms, and contentious. The need for energy-intensive disposal lowers the Energy Returned on Energy Invested (EROEI) for the shale gas extraction life cycle. Currentmethods of disposal include:

1. Re-injecting the brine into Class 2 wells:

Due to EPA concessions made to the oil and gas industry in the last 20 years, the most commonmethod of fracking fluid disposal is via re-injecting those fluids into Class 2 oil and gas wells. How-ever, this process is proving to be both dangerous to the environment and unsafe. Cases of groundwater contamination linked to re injected fracking fluid and fatal accidents are mounting. Permitsfor fracking operations are being slowed pending fracking fluid disposal studies and assurances.

2. Zero Liquid Discharge (ZLD):

A proven, though expensive method of fracking fluid disposal is zero liquid discharge. ZLD is the process of removing contaminates from brine via evaporation and crystallization. ZLD plants are both capital energy intensive as they are generally constructed with titanium components and requirelarge amounts of electricity.


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Appendix C Brine Concentration System (BCS) Diagram

For more information regarding investment opportunities in Burner Technology, please send your contactinformation to: [email protected]

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