BLACK CRYSTAL OIL & GAS

OUR OPERATING PRINCIPLES

At Black Crystal Oil and Gas, we foster and encourage continuous enhancement of the company’s image of excellence, including a reputation for quality products and services; an enduring commitment to protect the interests, life, safety, welfare of the staff; the financial interests of our investors and our customers; and an unwavering support of our community --especially through our determination to protect the environment from pollution using available technology that brings value to our investors, integrity to the staff, pride to the community, and satisfaction to our customers.

We are proud to maintain our reputation as a great place to work, where our employees exhibit strong desire, motivation, and commitment to out-perform the competitors. Our organization continuously empowers our employees to make decisions, take prudent but calculated risks, be creative, learn from mistakes and bring forth innovative ideas that work.

We espouse and foster a work environment that is challenging, stimulating, innovative, creative and fair, where each employee has the opportunity to grow. Importantly, our operating principles are guided by conscious awareness and sensitivity to the environment, based upon four primary principles which are:

First, is the desire and willingness to comply with the law of the land and be environmentally friendly.

Second, is the aggressive pursuit and expansion of our exploration, drilling and production programs or internal and external prospects.

Third, is the drive and energetic motivation of management, staff, investors, and customers to support all our global enterprises by ensuring continuing products and service improvements, lowering the cost of production using innovative efficient and effective methods, and maintaining better environmental standards and character.

Fourth, is the willingness and commitment of our organization to positive organizational growth and development through improvement of the quality of life of personnel, and generation of a high rate of return on investment for investors using creative management and financial approaches.

Fifth, is our ability to espouse innovative technologies that enhances productivity, efficiency, and effectiveness, thus invariably improving the quality of our customer service, and allowing our competitive placement in the industry as one of the best, if not the best, independently owned and operated oil and gas Company.

While traditional primary exploration and production strategies and approaches may vary depending on location, type of reserve, government regulations and current market economy, B.C. O&G with the aim of implementing solutions to gain global competitive advantage in the petroleum industry, is resolved to implement and follow our long-and short-range strategic goals as indicated below.

B.C. O&G’s exploration and production strategy will be determined by targeting the best prospects in the geographical local and international productive regional basins, where assurance of proven reserves has been established, documented and verified based upon current or past production statistics; or where we can be the number one top producer of newly discovered productive fields. Consequently, the following questions and corresponding answers will inform our decision or choice for exploration and production:

  • Is the area a core region with proven reserve or is it a new unproven area that will consume resources and undermine our core operational competencies?
  • Is this new frontier acreage unexplored, or fairly explored with proven reserves or basins?
  • Are we going in alone as an operator, or as a partner, scouting or non-operator investor?
  • Are we the first player in the game, or are we a late-comer with guaranteed potential for marginal production?
  • What is the extent of the reserve? Is it a large-volume target or concentrated production area with limited estimated target value, but with temporary marginal remunerations?

At B.C. O&G, a successful strategy will be selected to achieve production results based on our set goals for the exploration project. Regional selection of operations will be based on economics, the location, business practices in the area, politics, and political viability of reparation of profits, etc.

OUR CORPORATE VALUES

Black Crystal Oil and Gas encourages transparency, honesty and open communications that foster a climate of trust. We respect professionalism and dignity inside and outside our organization. We explore, acquire, develop and produce oil and natural gas leases where possible to meet the needs of our customers, investors, and the public.

The core standards that define our organization and corporate culture are our tenacity, innovation, creativity, and performance excellence. We believe in professionalism, profit, accountability and responsibility. Our corporate values espouse ethics, diversity and sensitivity. With quality leadership, respect, teamwork, honesty and integrity we earn the commitment and loyalty of our employees. All these along with products and services enable us to use best-in-class standards as a measure of our drive for performance excellence in the oil and gas industry.

According to Aristotle, (we are what we repeatedly do) therefore in our organization, excellence is not an act, but a habit” As a result, Black Crystal Oil and Gas has chosen the path of performance excellence and it is and will continue to be the “Soul of our business.”

We would like to maintain our reputation as a great place to work, where our employees exhibit creative and innovative thinking that provides effective solutions for our operations, staff, customers, supply chains, consultants, clients and impacted public; with a strong desire to produce and deliver quality customer service and products, while outperforming our competitors.

We empower our employees to be responsible and accountable, make decisions, take prudent but calculated risks, be creative, learn from mistakes and bring forth innovative creative ideas that work. Our organization continuously creates a work-place that is challenging, stimulating, innovative, creative and fair, where each employee has the opportunity to grow.

As we strive to meet today’s oil and gas needs, we continue to dedicate more resources into developing reliable and consistent energy sources for the future. We are committed to sustainable innovative state-of-the-art research and technology that enhances development. This commitment constitutes our source of pride.

Following our expansions into major oil and gas field’s procurement and development, BC O&G plans to acquire, refurbish, build and own crude oil refineries, gas processing plants, pipelines, chemical and petrochemical installations, LNG and electrical power plants worldwide

Our “Triple-Heritage” Corporate-Values

We hold assets that have been certified as having large potential amounts of oil and gas. Our intent and immediate priority is to implement development programs (independently or through joint partnerships) to fully explore these assets in a timely manner, through efficient commercialization of the accumulated oil and gas reserves within.

Our company's triple value heritage inherent in the management and general operations of all our petroleum oil and gas assets are optimization, realization and creation of tangible values that enhance growth, development and sustainability.

Black Crystal Oil and Gas has a triple-value-heritage value philosophy that was e created through our successful business operations and which involve our effective and efficient exploration, production and distribution of oil and gas. The first of these is value realization, the second is value creation, and the third is value optimization.

Once we realize our values, we can create and embrace them and finally we plan to optimize them in order to enhance our profits, growth and economic sustainability.

We work very hard to realize, create and optimize all our company’s values

Value Realization

Our active and relentless pursuit of performance excellence in oil and gas “Exploration” is currently aimed at identifying current and future needs or assets, and optimizing these assets to achieve our company’s objectives. This will be achieved by increasing oil and gas production and reducing operating and management costs through effective and efficient long-and short-term strategic management, planning and implementation for all future and current exploration, development, and depletion of oil and gas discovered fields.

Value Creation

We are focused on processes that add economic values to our growth, that improve quality and efficient “Production” of oil and gas including associated assets; that encourage the use of advanced technology in our production operations that will give us a competitive edge in the industry, as we are currently obtaining licenses to acquire more international production acreages in different countries across the globe. This focus on production processes we anticipate will improve and increase our operations and assets both in the onshore and offshore basins where we have initiated an action plan to generate more prospects for future oil and gas exploration and hopefully more discoveries. Exploration opportunities and negotiation for more oil and gas leases are underway inside and outside the United States, Canada, Nigeria, Guinea, Zambia, Namibia, and Angola.

Value Optimization

We are committed to value-added programs through efficient “ Distribution” of all our petroleum crude and refined products and services, hence we have identified strength, weaknesses, opportunities and threats (SWOT) to a more efficient operation and management of all our production resources while we set priorities for planned action. Opportunities exist for our Company to pursue new international markets, develop its refined petroleum and petrochemical retail market, and introduce new products all in addition to our current local markets operations. These untapped areas will allow us to enhance and diversify our business operations, potentially increase revenues, and strengthen our current customer and geographical operational base. Black Crystal Oil and Gas is aware that these opportunities are attainable, given the appropriate investments in capital and human resources.

Corporate Strategic Plans

Using technology to grow our business is the corner stone of our long range development strategic plan. We plan to achieve increase reserve, improve production, expand and grow our business operations with excess cash flow, by executing our strategy as highlighted below:

  1. Develop and Maintain Strong financial Standing, and Capital Investment flexibility
    As a privately owned independent company, our business priority is to utilize the best-in- class financial and economic strategy and practices to address our capital outlay, debt and equity in a responsible manner. Therefore, to protect our venture capital, generate better returns on investment, reduce internal financial inadequacies or bias, and to manage our capital infrastructures and human resources capital effectively and efficiently, we have chosen to use the best financial management practice by employing an outside financial management firm to review, update and counsel our company in all financial matters, venture and obligations. We belief that with this strategy, our ability to execute our business plan, manage our resources, protect our returns on investments and keep our supply chain in line will be greatly enhanced
  2. Actively review, manage and increase the value of our portfolio assets and reduce any and all associated maintenance costs
    As part of our cost savings measure, we periodically, plan to identify, review and divest all company assets and real properties that are strategically not profitable to our current operations, considered to be in areas in which their acquisitions and continue investment are determined to no longer meet our stated primary objective and economic goals, where higher operating costs make it impossible and cost prohibitive to keep or operate--especially those properties we considered to be outside our geographic and economic operational viability.
  3. Encourage, seek and acquire viable value laden assets that meet our strategic corporate and financial objectives
    Maintain an insatiable drive to identify, acquire and produce oil and gas properties that will add tremendous economic values, profits, and continuous sustainability to our core areas of operations; that will increase and enhance our current production and future drilling ventures and overall exploration and exploitations of new discoveries. We plan to energize our economic profit potential drive by shifting primary focus from acquisition of existing producing properties to a more profitable new capital ventures involving large scale foreign “oil block” acreage acquisitions, through international joint-venture partnerships.
  4. Identify, review and exploit current productive farm-out leases and acquired properties
    We plan to aggressively drill horizontal wells, implement down-spacing of wells, and recomplete existing wells to enhance our production and reserve position. In some areas, our focus will be directed toward unconventional drilling and exploitation of formations which have not been exploited or were considered economically unviable or to have had a poor pay zone for large scale production, given current drilling and production-techniques. We will continue to exploit those assets which have resulted in higher oil production than originally expected.
  5. Initiate, develop and implement aggressive exploration and production programs
    We plan to be actively involved in the current drive to explore and produce from active shale based reservoirs throughout the nation--especially the central North Texas Barnett Shale oil and gas production. Our new acreage and expanded geological and geophysical exploration program will however focus more attention specifically on the oil and gas producing areas of the Appalachian Basin natural gas region of Pennsylvania, New York, Ohio and West Virginia with emphasis on the Marcellus and Huron Shales respectively. The Marcellus Shale alone extends over 600 miles with a thickness of more than 1000feet and reportedly holds approximately 1.5 to 500 trillion cubic feet of gas. (These deposits are also known as the Pennsylvania Shale, or New York Shale, West Virginia Shale or Ohio Shale.)
  6. Develop expansive program of joint venture partnership opportunities with other Oil Companies
    We plan to enter into joint venture partnership with UNIGAS Corp and other privately owned oil and gas exploration and production companies in order to share capital resources–especially drilling costs outlay due to the huge overall exploration and production capital required for drilling, logging, completing, fracking and treating wells, including production and direct pipeline connection costs.
  7. Expand both our midstream and downstream assets and infrastructures
    We hope to develop and enhance our assets by negotiating joint ownership agreement with already identified major oil companies, to partially own and promptly hook-up our producing wells as they come on line for delivery to designated markets as needed. As part of our long-range operating strategy, we anticipate developing production lines for delivering our crude and refined products to the market. Plans are currently underway to identify profitable sites for our own name brand gas stations starting in Oklahoma and Texas. This strategy will provide us the needed opportunities to transport third party gas and generate incremental gathering and transportation fee income
  8. Aggressively expand our operations on the continent of Africa
    The continent of Africa is in an interesting and fascinating oil region comprised of many oil producing and potential oil producing countries. While there are fewer or limited petroleum refining and petrochemical processing infrastructures in place to care for the needs of nearly 1 billion populations, approximately 90% of the citizens on this continent have little or no access to electricity; the industries are plagued with inability to generate their own power, or build modern petrochemical infrastructures that can serve the people.

All hands are on deck of a drilling rig

Many parts of Africa are just getting ready to enter the industrial age where petroleum crude is critical to day-to-day activities. This means that they have to rely extensively on fossil fuels which though readily available, have not been tapped. The region of East Africa with its massive oil reserves actually boasts the richest concentration of oil on the entire continent of Africa, and until now has remained virtually untouched by major oil and gas companies. One of the reasons the area was untouched is due to civil wars in the region. However, today with a little political stability in the region, roughly $10 trillion worth of crude oil is at stake in East Africa alone. This area is becoming a hotbed of petro-action with intensive exploration programs. The area is now very inviting to many petroleum exploration companies. Therefore, the entire continent of Africa, not just East Africa, presents a huge economic opportunity for our company.

Source: U.S Energy Information Administration

Black Crystal Oil Gas

“Excellence is a habit and it is the soul of our business”

P. O. Box 794734 Dallas, TX 75379-4734. USA. Email: mail@blackcrystaloilandgas.com