Frequently Asked Questions
What is seed capital:
Seed capital is the funding required to get a new business started. This initial funding will be utilised for land acquisition and development, specifically to acquire and develop the Viola Prospect in Kansas.
Why oil and gas?
Considered to be one of largest sectors in the world, the oil and gas sector, particularly the Exploration and development side (upstream sector) holds the potential to yield the company an exceptionally strong return on investment, meaning the company will potentially be cash flow positive in the near term.
Why the USA?
There are multiple reasons for choosing the USA, not least because over 50% of the team is based there. It's a politically stable first-world nation that has a real desire to become a net exporter of both oil and natural gas. There are multiple leases with oil behind the pipe and the cost of production is exceptionally economical in comparison to other countries. There are also multiple refineries meaning once we have produced the oil, we also have somewhere to sell the oil too at predetermined prices which are imperative.
Is it high risk?
Generally speaking, investment into start-up businesses do carry a high degree of risk, however, the opportunity is asset-backed, it is not merely the creation of something that has no inherent value. The lease itself comes with a full engineering report and existing infrastructure, there are already 40 drilled wells on the lease with geological reports and core samples. We will be utilising the capital to acquire the lease and begin putting the wells back into production, creating near-term cash flow and productivity from the lease. The wells are only shallow, to the depth of circa 2,500 ft, which are considerably smaller and less costly than the deeper wells and even horizontal wells, which means that the company isn't overexposing itself to one particular property.
How do I exit?
Currently, the shares are unlisted, the company is seeking to raise £4.3 million, once the raise is complete the company will transfer into a PLC (Public Limited Company) and will seek to list on a Junior exchange initially whilst focusing on the listing opportunity on AIM.
Will you pay dividends?
This is something that the company projects to be in a position to do once it is listed on a junior stock exchange. The company has every intention to be in a position to pay dividends to its shareholders.
What is the minimum investment level?
£3,500.00 (or possibly lower subject to the managements discretion)
How often will I receive updates?
The company commits itself to Quarterly newsletters, these will include workover results, news flow, corporate progression as well as photos and videos of work on the site.
We will also hold an annual dinner meeting each August, where all shareholders will receive an invitation to attend, there will be talks from the key management teams, both UK and USA, and an open floor for questions and answers.
What will my money be used for?
The initial raise will be used for land acquisition and development, namely the Viola prospect, situated in Coffey County, Kansas, USA.
How many rounds of funding does the company need?
As a company, we will seek to raise £15 million in total, however, depending on production from the wells this figure could be reduced. The company will continually seek prospects with multiple wells with engineering reports and geological studies in order to mitigate its risk.
I would like to see the lease.
As shareholders or potential investors, you are invited to travel to the United States and spend some time with the team over there, who would more than welcome your visit to show you around the lease, discuss the business model and the long-term plan.
What is the benefit of investing today?
The company is acquiring a lease with 40 existing wells, including oil-producing wells, water wells, infrastructure, tank batteries and equipment to name but a few. TriStone is also acquiring 41 miles of a natural gas pipeline, this enables the company to have four separate income streams:
Gas from other wells
Once the lease is in production, the valuation of the company will increase. The benefits of investing early are to see the greatest amount of potential uplift and capital growth. Once the properties are in production, and the raising of capital is complete, the company will seek to obtain a full valuation from the Securities and Exchange Commission (SEC) and in addition, obtain an OOIPD reservoir study for oil reserves in the ground which is deemed as a liquid cash asset. The team will also place focus on the upstream activities affiliated to our venture. Upstream activities consist of but not limited to; Reserves and resources, exploration and evaluation, revenue recognition and disclosure of reserves and resources to name but a few. This is partly in place to raise further capital at an increased price per share.
Does 100% of my money go into the project?
No. However, the large majority of the money will go into the acquisition and development of the lease. The smaller proportion that doesn’t will be utilised for marketing, accountancy, legal, office, and general business costs. The company will not be paying salaries to any board members during the seed capital round in order to ensure the vast majority of the money goes into the first of many prospects.
For further information regarding our services please contact us and we shall be happy to oblige in assisting you further.
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TriStone Holdings Limited
A Firm of Distinction.
Main Tel: 0800 055 7079