Executive Summary

Blue Sky Management Group, Inc. (BSG)

BSG, incorporated and headquartered in California, is the holding company of three business units: Blue Sky Energy & Power, Ltd., (BSEP), Blue Sky Holdings, Ltd., (BSH), and Blue Sky Offshore Services Pte Ltd., (BOS). BSEP and BSH are oil and gas exploration and production companies incorporated in the British Virgin Islands. BOS is an oil and gas service company incorporated in Singapore.

BSG, directly and through its subsidiaries, owns oil and gas properties in the United States, including GOM, and Indonesia

BSG’s engineering and business operations 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 industry heavyweights such as ConocoPhillips, Shell, Apache, Pertamina, BHP Billiton, and Marathon.

We proudly announce that through our collective expertise and high ambitions, we have developed the Langsa Model for reducing operating cost and increasing oil production in challenging environments. In BSG’s five years of employing the Langsa Model in the Langsa TAC in offshore Indonesia, we reduced operating cost from $53/bbl to $16/bbl and increased oil production from 223,729 bbls/year to 413,146 bbls/year.

BSG is aggresively 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 Holdings, Ltd (BSH)

BSH owns a 50% stake in the Langsa Technical Assistance Contract (TAC) located in offshore Sumatra, Indonesia. Current oil production is 885 bopd, and with a low operating cost of $21/bbl, Langsa generates a post-Government of Indonesia stake net income of $200,000/month.

BSH also owns a 67% stake in ACL International, Ltd, a TSX-listed Canadian public company. Among ACL’s assets are a 38.25% interest in South Block A in onshore Sumatra, Indonesia, where wells will be drilled in oil and gas bearing formations in late 2016. ACL also owns the other 50% in the Langsa TAC.

Negotiations are underway centered on acquiring oil and gas assets in offshore Italy, South Africa, Australia, and Nigeria.

Blue Sky Energy & Power, Ltd (BSEP)

BSEP, through subsidiary Gulf E & P, Ltd., owns a 50% working interest in the Brazos 440 Block, located in 100 feet water depth in the Gulf of Mexico (GOM). Brazos has produced 320 Bcf of natural gas, with the company estimating that 150 Bcf reserves of natural gas remain.

BSEP is also working in the Mississippi Canyon in the deep waters of GOM to deploy its MOPU at a water depth of 950 feet (reservoir depth of 8,000 feet) for oil production of 20,000 bopd and natural gas production of 60 MMscfd.

Blue Sky Offshore Services, Pte Ltd (BOS)

BOS owns PTAP ONE, a Floating Production Storage Offloading (FPSO) vessel chartered to the Langsa Field at $19,000/day. PTAP ONE has a storage capacity of 250,000 bbls and is rated for 15,000 bopd and 15 MMscfd. Acquired in January 2011 for $12 million, only $250,000 of the $6.4 million loaned from Bank Danamon remains to be paid back.

BOS also owns Innovator, a Mobile Offshore Production Unit (MOPU) capable of working in deep waters – its previous job was at 900 meters below sea level. She 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. Upon its imminent deployment, a netback of $50,000/day is expected.