About Blue Sky

Executive Summary

Blue Sky commenced its operations in 2007 by acquiring oil and gas properties in the Gulf of Mexico (GOM) from ConocoPhillips for $50 million. These properties included operations of Green Canyon Blocks 52, 53, and 184, and deep water oil fields. Blue Sky produced via a Tension Leg Platform at 580 meters water depth and fixed platforms at 185 meters water depth – a record for fixed platform installations. These properties also included operations of a production pipeline to the commercial sales point.

Blue Sky is proud to have had major companies such as Chevron, Apache, and Shell support our operations by participating as our non-operating partners in these ventures.

Blue Sky sold most of its GOM assets in 2010, at which time it acquired a noncommercial oil and gas field 150 kilometers from the shore in Langsa, Indonesia. To make the field economical, Blue Sky purchased an FPSO for $12 Million and transformed the field to profitability within one year. When production declined in 2014, Blue Sky designed and implemented a Work Over program on existing wells, boosting production from 300 bopd to 2500 bopd, thus making the operation profitable even as oil prices plummeted. Langsa was among the rare oil and gas operations which could thrive at $30/bbl.

Blue Sky’s senior personnel possess an average of over 30 years of experience in the oil and gas industry. We have selectively assembled a management team with distinctive experience at the forefront of our industry. Our team has worked for and with a wide variety of industry heavyweights, including the majors. Additionally, Blue Sky shareholders have successfully consummated transactions and jointly operated assets with companies such as ExxonMobil, Chevron, Apache, ConocoPhillips, Shell, Texaco, and Amoco.

Blue Sky is actively negotiating to acquire oil and gas assets where it can replicate and expand upon the Langsa Model to maximize hydrocarbon and monetary returns.

Blue Sky aims to reward our stakeholders and shareholders by combining our experience and technical expertise with appropriate funding in order to generate profits from oil and gas fields in challenging environments, or otherwise uneconomical projects.

Well and Platform in Blue Sky's Brazos 400 Block, GOM

About Blue Sky

Corporate Structure

Blue Sky consists of two arms each headed by a stand alone unit:

  • Blue Sky Energy & Power, Ltd. – a holding company focused on oil and gas projects in the United States
  • Blue Sky International Holdings, Ltd. – a holding company focused on ownership in public oil and gas companies with projects outside the United States

An overview of these units is as follows:

Blue Sky Energy & Power, Ltd (BSEP)

BSEP, incorporated in Delaware, focuses on operating onshore and offshore oil and gas projects in the United States, with its prime assets currently in GOM.

BSEP, through a subsidiary, owns a stake in PTAP ONE, a Floating Production Storage Offloading (FPSO) vessel currently chartered to Langsa TAC. PTAP ONE accommodates 32 persons on board, has a storage capacity of 250,000 bbls, is rated for 15,000 bopd and 15 MMscfd, and is Indonesia flagged. BOS acquired PTAP ONE in January 2011 for $12 million cash and $6.4 million debt from Bank Danamon which has been effectively paid off.

BSEP is in the process of leasing land in Mississippi Canyon, GOM, in 915 meters water depth. It plans to redevelop a field which was temporarily abandoned in 2012, and which has proved reserves of 19 MMbbls. Discoveries on adjoining fields can also be brought to production, with Blue Sky signing a Production Handling Agreement (PHA) and earning a tariff per barrel of oil and gas processed. Blue Sky has significant experience in operating with PHAs from its prior GOM operations. BSEP has targeted this field for deployment of Blue Sky’s Mobile Offshore Production Unit (MOPU), with production goals of 20,000 bopd and 60 MMscfd.

BSEP also owns a 50% working interest in the Brazos 440 Block, located in 100 meters water depth in GOM. Brazos has produced 320 Bcf of natural gas, with the company estimating that 150 Bcf of reserves remain.

In addition to its GOM projects, BSEP has onshore projects being operated by BSEP or affiliated companies.

Blue Sky International Holdings, Ltd (BSIH)

BSIH, incorporated in Canada, focuses, through its public subsidiaries, on operating onshore and offshore oil and gas projects outside of the United States.

BSIH, through a wholly owned subsidiary, owns a 50% stake in the Langsa Technical Assistance Contract (TAC), which is located in offshore Sumatra, Indonesia, and currently produces about 700 bopd.

BSIH owns a majority interest in Bow Energy, Ltd., (Bow), a TSX-listed Canadian public company which owns the remaining stake in the Langsa TAC.

Bow’s asset portfolio also includes a 44.48% interest in the South Block A Production Sharing Contract in onshore Sumatra, Indonesia, where a well will be drilled in December 2016.

BSIH, through another subsidiary, owns Innovator, a MOPU capable of working in deep waters. The Innovator’s total costs exceeded $250 Million in 2007, when a semi-submersible drilling rig was converted into this deep water production unit. She was deployed in water depth of 900 meters from 2008 to 2012. Innovator accommodates 98 persons on board, is rated for 100 MMscfd and 20,000 bopd, is US flagged, and is currently docked in the Gulf of Mexico.