Bering Sea Abyssal Commons Natural Gas Project, (30% Equity):

·         Area; 200,000 square kilometers;

·         This is possibly one of the larger undeveloped clean energy natural gas fields.

·         Contains a speculative resource estimate made by USGS geologists, of approximately 900 Trillion cubic feet (Tcf) in-situ of natural gas and the possibility of deeper oil resources, with perhaps 100Tcf recoverable free gas.

Economic Geology:   Thousands of gas chimney structures, fueled by warmed source beds in Miocene siliceous deposits, occur in the Aleutian Basin Abyssal.  The gas chimneys occur in a flat area of the abyssal plain, comparable in size to Nevada and Utah combined. In addition to known gas resources, there is also oil potential as heavier petroleum sources are thought to be located underneath the gas chimneys.

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

Tenure:  The Strategic Nine Corporation led Consortium lodged an International Resources Rights Claim dated May 26th, 2008, covering An area located in the Bering Sea Abyssal beyond the 200nm EEZ of any country.

This is a speculative Tenure situation. The Bering Sea Abyssal Commons; Known to fisherman as the ”donut hole“ it is a portion of the Bering Sea surrounded by the EEZs of Russia and the United States. It lies just off the eastern Bering Sea on the Aleutian Basin. The ”donut hole“ is essentially a high-seas enclave outside the jurisdiction of any country.

International Waters Claim Has Higher Potential Profit Margins

Management believes that the Outer Blake Ridge International Waters Claim area gas resources and Bering Sea projects could generate higher internal rate of return (IRR) than other LNG projects.

Other Benefits

1.      The areas carry lower political risks as there is no regime to expropriate floating Assets.  Freedom of the Seas is one of the most inviolable Rights in the world today.

2.      Most of the LNG and subsea equipment is moveable and can be relocated to other gas resources when the resource is depleted.

3.      Faster development, due to the lack of bureaucratic permitting delays.

4.      Operating in international waters eliminates in-country political risk factors and cuts taxes and other imposts to zero. These are substantial commercial advantages.

5.      Natural resources in the oceans commons have historically been extracted wherever it is profitable to do so as the lack of any onerous government resource rent makes a substantial difference in overall economic returns.

ENERGY MARKET NEED;  The worldwide demand for clean energy such as natural gas is increasing geometrically. US domestic gas supply is largely static, despite 90% of US onshore drilling rigs being employed seeking gas. 

The Consortium is proposing that the natural gas resources be immediately developed using a mass-produced fleet large floating LNG (FLNG) production vessels.