North and South Carolina. Blake Ridge Natural Gas Project, (30% Equity):  

The Company has also acquired a 30% equity interest in a Speculative International Resources Rights Claim in the Bering Sea Abyssal Commons, with seismic identified potential for large resources of immediately developable, clean low C02 natural gas, along with untested deeper oil potential.

These are speculative tenure situations on large gas resources and it might take some time to perfect a clean enough tenure to proceed with energy development.

These natural gas development projects, when developed might supply as much as 1Tcf gas p.a by pipeline to the Carolinas and up to 20 million tons each per year LNG.

Area; 45,000 square kilometers;

This is one of the larger undeveloped clean energy natural gas fields in the world.

The Blake Ridge-Carolina Rise area hydrocarbons in-situ resources have been estimated by various researchers from 10 drill holes and seismic studies to be approximately 2,400 Tcf in-situ.  It is estimated to contain a speculative resource of 100 trillion cubic ft of recoverable free gas, which is 18 billion BOE.

These free-gas resources cover an area, which is approximately 25% within the Consortium’s International waters Resources Claim and 75% within the US unsolicited OCS lease application.

Economic Geology:  Blake Ridge is within the western Atlantic carbonate trend, a Jurassic-Early Cretaceous reef and platform limestone complex that stretches from the Gulf of Mexico to Newfoundland. 

 Thermally mature sediments have been encountered.  Early source rock analyses suggested that Upper Jurassic carbonate reservoirs would more likely contain gas than oil.

·         Thickness of Free-Gas Zone Sediments ; 250 meters average.

·         Source Rock: Originally assumed to be biogenic but also possibly from untested deeper heavier petroleum systems.

·         Trap, Seal: Hydrate Zone, interbedded clays-hydrates above free gas zone sealed free gas over large areas below.

·         Reservoir porosity: Poor to good in fractured zones.

·         Free Gas Saturation: High.

MARKET CONSIDERATIONS; 

Conveniently located 100-200 miles offshore from the South Carolina Coast and America's largest Gas market.   Also close enough to Western Europe to deliver LNG economically.

The environmental impact of Blake Ridge gas extraction will be net positive due to the new availability of large quantities of clean, low-C02 natural gas for electric power generation, enabling the lowering of coal-fired plants C02 emissions as well as for vehicle use as CNG.

Production Potential:  The Consortium plans to eventually deploy a fleet of 6 or more 1,500ft long, floating LNG production vessels on the international Claim portion of the property, each producing 3-4 million tons per year of Clean, low C02 LNG for US and European markets.

Tenure:  The Outer Blake Ridge Commons; is an area beyond the US 200nm EEZ line and thus a high-seas enclave outside the jurisdiction of any country.

The Strategic Nine Corporation led Consortium lodged an International Resources Rights Claim dated April 10th, 2008, covering an area located adjacent to the OCS lease application beyond the 200nm EEZ of the US.   This is a speculative tenure situation and it might take some time to perfect a clear enough tenure to proceed with energy development.

OCS Lease Application:   Approximately 75% of the gas resource the Consortium has Claim to, is under US unsolicited OCS Lease Application and falls within the US Atlantic OCS lease moratorium area.

The Consortium is proposing that the government support the International Resources Claim and on the OCS lease application, either

a)     Grant a waiver from the moratorium, or

b)     Commit to granting the OCS lease when the moratorium expires in June 30th, 2012.

There is now considerable public pressure to open up the OCS for drilling due to the high costs of importing energy and the consequential grave risks to America’s security and economy.