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The Roosevelt Energy Exchange, Inc. [TREE]

INTRODUCTION TO OUR COMPANY

The Roosevelt Energy Exchange, Inc. [TREE] was formed for the purpose of acquiring operating port properties with existing fuel tank farms, or land on which fuel tanks can be built with functioning ports and / or fueling piers and the upside potential and technology to improve the trade of fuel via a massive amalgamation of fuel tanks, piers, ports and discounted fuel from partner sources.

TREE shall apply advanced scheduling, systems integration & trading software and engineering techniques to deliver discounted fuel to trade customers from its operating ports in the Caribbean. In summary, our strategy to create value in the physical fuel trade sector will be a [low risk, high return] strategy that includes both conventional and unconventional physical trading techniques. Our operations will focus initially on the following geographic areas in the Caribbean: Puerto Rico and St. Croix, USVI.

 

Our focus is creating and maintaining investor wealth through regional alternative investment strategies in the physical fuel trading segment of the Oil & Gas sector. The team’s collective abilities provide an advantage over investing individually by allowing TREE to quickly and efficiently address any issues. Because TREE executives are directly involved in the placement of investment funds, TREE can manage investments more actively than large institutional investors. By investing in a company with an experienced and specialized executive management, investors are freed from the complexities, worries, and time required for individual investment management.

Over the years, we have seen extreme market fluctuations; because of this, we are always researching market trends to develop strategies allowing us to mitigate this volatility and reduce its negative effects on our investors. This experience has also better positioned us to take advantage of opportunities presented in such times of uncertainty. This proactive approach sets TREE apart as an alternative to the Rotterdam Port tank farm, servicing the western region countries.

TREE’s model is to operate by engaging global traders of fuel who have expertise in efficiently trading fuel to a global market, while our executive management team will maintain financial and managerial control on the operations. This will be a very cost-effective model as TREE operating division, FūelBank™, begins operating more tank farm properties and physically trading fuel to markets centered in North, Central & South America and the Caribbean.

 

The Company intends to build its own fuel tanks also and have its operations team assume day to day operational control of the properties, post acquisition. For the near term, the executive management team will utilize additional senior industry consultants as needed to review and advise on the operations plans so the Company maintains the highest level of technical operations and maintenance on the tanks and pipelines to achieve optimal trading of refined fuel product, while deploying capital efficiently. As a practical matter, our executive management team has over 150 years in combined experience in the physical fuel trade and tank farm / pipeline / port operations & management sectors of the oil and gas industry. The Company’s goal is to maximize tank storage space from the tank leases with a shortened lease-time and to increase the amount of fuel traded by ready access to ships, boosting both the cash flow and the underlying value in each tank lease.

Acquisitions will focus on operating port properties that follow the same model of the Rotterdam port facility, but with a substantially increased volume of fuel moving through the tanks and pipelines on a weekly basis to increase the use of the real estate latent within each tank. A field specific scheduling plan and trading program will be implemented to increase rotation time and physical trade on each tank.

Initially, proceeds from fuel trades will be invested into the upgrade and reconditioning of tanks on the properties to increase capacity, pipeline flow, flange / pump flow-rate and cash flow. As trading capacity is increased and profitability ensured, FūelBank™ may issue an IPO to satisfy the investor's options on exit strategy. The Company’s goal is to increase both the level of fuel trade capacity via tanks acquired or built and cash flow positive positions to allow us to acquire more ports with larger upside for additional global trading footprint.

In the initial stage, the Company is targeting three private ports and two government owned ports: one port in St. Croix, USVI and two private & two government ports in Puerto Rico. The management team anticipates these initial properties to yield an undiscounted cash flow per each port’s specific financial model. Management believes each port will maintain significant residual value after the refurbishment and new construction of fuel tanks is completed and capital has been fully deployed. There is the potential that additional capital raises will be done after the successful construction ceases on the first properties, to allow the acquisition and development of even larger port properties.

The goal of the company is to increase shareholder value, long term. The focus is to acquire and build fuel tank farms to trade fuel and increase cash flow annually, thereby creating a sustainable enterprise value.

While the core value of TREE's operations falls within the physical sites and its port / tank farm facilities, the value proposition our team provides is the added profitability that physical fuel trading will bring using the tank farm as our capital reserve and commodity bank.  FūelBank™, one of our subsidiaries, has access to thousands of physical fuel traders through our partner, TradEx [www.tradexfuel.com].  Using the fuel stored at TREE we can use this network of traders, along with our own traders, to physically trade fuel, globally taking advantage of our prime location in the middle of the trans-shipment corridors between North American, Caribbean, South America, Africa, the Middle East and Europe. 

The global physical fuel trader (the Buyer) is constantly looking a reliable, consistent source of fuel and logistics assurances that is located in the western hemisphere.  The opportunity exists in Puerto Rico due to its unique geographically centralized location, within the global trans-shipment trade corridors between North American, Caribbean, South America, Africa, the Middle East and Europe.  Globally, there is a much higher demand for physical tank storage located at deep water ports than is available to the independent physical fuel trader. There are thousands of traders worldwide; Alibaba, Glencore and The ICE reflect perfectly how much the global fuel trade sector has grown exponentially over the last decade. FūelBank™ is positioned to become the “go-to” fuel-trade destination (the Amazon or eBay of fuel trading). Currently, Rotterdam is the largest petrochemical storage facility in the world (175 million barrels of storage) and provides Europe, Asia and Africa with a centralized location from which to trade and take delivery of the commodities stored within the various storage and shipping facilities in the area. TREE has targeted the acquisition and construction of over 200 million barrels of tank storage.

SUMMARY OF OPERATIONS

And we know that there is so much more to come: oil is the world’s primary fuel, oil is the enabling force of globalization, and 85% of the global population lives in undeveloped nations still waiting for their chance to consume oil. — according to forbes.com

In its forecast through 2040, Exxon predicts that oil will remain the dominant fuel source, as demand for both plastics and transportation grows, mostly because of increasing incomes across Asia.

- according to wsj.com

 

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