1. Lube Oil Recycling and Re-refining
Gulf Basin Petroleum
Recycling Company
Lube Oil Recycling and Re-refining

2. Company Overview Focus Near-Term Plan Mgmt. Team
Provide petroleum based environmental services to Gulf Basin industries
Recover used oils and re-refine to generate valuable base lube oil and other refined products
Near-Term
Plan
To develop the capability to recycle used oils having a high level of contaminants
Construct a new, state of the art, 30 MM GPY used oil recycling /re-re-refining plant in Bienville, MS
Utilize the rail and barge capabilities of Port Bienville
Mgmt.
Team
Extensive experience in used oil re-refining operations, used oil collection, commercial, civil and industrial construction
Exceptional track record in building and growing business across a wide range of industries

3. Vision & Mission Our Vision Our Mission
To become the leading used oil re-refiner in the Gulf Basin and partner of choice to existing used oil collectors and generators of used oils.
Our
Mission
To make a significant and lasting contribution to the environment and to sustainable development. To aid in the economic recovery of the Gulf Region

4. More than a billion gallons of used oil is available for re-refining
US Lubricant Market (2.5 B GPY)
Used Oil Generated (1.6 B GPY)
Used Oil Collected (1.2 B GPY)
Re-refined Oil (290 MM GPY)
Improper Disposal (400 MM GPY)
Asphalt, Cement Kilns
Re-refineries
Fuel Blending

5. US market is in the early stages of development
1200 MM GPY
620 MM GPY
Used oil volume – Million Gallons/year
USA
1.2 billion gallons collected
290 million re-refined
8 Plants operating
3 Plants announced
Europe
620 million gallons collected
500 million re-refined
28 Plants operating
No new plants announced

6. There is ample room for new re-refineries in each regional market

7. The feedstock supplier (collector) market is extremely fragmented
USED OIL COLLECTION
TOP 10 US COLLECTORS (MM GPY)
The collection market in the US is highly fragmented and estimated to include ~400 companies nationwide providing collection & recycling services
There is only one national company (Safety-Kleen) & approximately 30 significant regional Companies; the balance of the industry participants are small “Mom & Pop collectors
These small companies typically sell their used oil to Industry as an alternative to virgin fuels
Burning used lubricants is a poor use of the material from both an environmental and economic perspective
Used oil generators would prefer to have their used oil recycled
Company
Annual Volumes
Primary Service Area
Safety-Kleen
180 ~ 200
National
FCC
75 ~ 80
Mid Atlantic / Gulf Coast
United Solutions
30 ~ 40
North Central
Thermo Fluids
70 ~ 80
Intermountain West
DeMenno / Kerdoon
40 ~ 50
California
Universal Lubricants
20 ~ 30
Midwest
Inter Gulf Corporation
25 ~ 30
Southwest
Universal Environmental Svcs
30 ~ 35
Southeast
Lorco Petroleum
15 ~ 25
Northeast
Aaron Oil
20 ~ 25
Gulf Coast

8. Supplying re-refineries is the best option for collectors
Majority of collectors are now selling into lower margin burner markets as an alternative to virgin fuels
Collectors are experiencing erosion of margins
Lower cost of natural gas
“Warm mix” asphalt reducing demand for fuel
General economic malaise
Due to margin squeeze, small collectors are losing market share to collectors with re-refining capability or access to higher paying markets such as fuel blending, exporting.
More re-refining capacity is needed to support used oil collectors
Most collectors desire to get into higher margin re-refining but don’t have the resources or expertise to go it alone
Capital cost of re-refining equipment
Lack of technical expertise to operate a re-refinery

9. Strengths Constructed, commissioned & operated a re-refinery
Have constructed, commissioned and operated a re-refinery in Chester, SC
Team has significant expertise in building and operating oil collection and fuel processing facilities.
Established customers for all re-refinery products
Understand the challenges and opportunities in the business
Have the team
& execution
capabilities
to grow
We have a very strong and experienced management and operations team to grow the business across multiple locations
Lessons learned from prior operations and commissioning experience give us a strategic advantage for technology selection and commissioning of plants
Have significant
Business
experience over a
wide rang of
industries
Expertise in government, military and government bid contracts
Managed and Directed operation of construction firms operating
across the globe
Managed and directed used oil collection company
Managed and directed fuel recovery company

10. The time is right to build re-refineries in the US
CONSCIOUSNESS
ATTRACTIVE ECONOMICS
Increased public awareness of the harmful effects of unregulated disposal of waste on the environment and on the health of its citizens
Increasing consciousness on recycling and people’s willingness to pay the same or more for recycled products
Increase in crude oil prices and tight supply of virgin lube oil
Payback period for re-refining is now less than 4 years.
Re-refined base lube sells at a discount of around ~10% to virgin base lube
Propelling Growth
GOVERNMENT INITIATIVES
TECHNOLOGY IMPROVEMENTS
Several national, international regulations are in place for collection and processing of used oil
US DOE targets by 2015, B GPY to be re-refined. This will require a tripling of current capacity in the U.S. Thus, re-refining in the US is a phenomenal growth opportunity
Through continuous development, the technology has improved and is cost effective. Several players are successfully using the company’s planned equipment set
Used oil collection systems have improved, partly through government initiatives

11. Lubricant Market Overview
Lubricating oils are largely (75-95%) made of base oils, a mineral oil produced at an oil refinery; The balance would be additives, which are used to improve the lubricant’s performance
It takes approximately 2 barrels (84 gallons) of crude oil to produce 1 gallon of virgin base oil
The US Market represents 25% of global Lube Oil consumption, which total global consumption of approximately 10.3 billion per annum
Annual US sales of Lubricants between have been relatively flat at ~ 2.5 Billion Gallons, due to the link between economic growth – net new vehicle sales and manufacturing equipment sales, offset by extended intervals in oil changes.
There are vast differences in per capita consumption – United States 8.40 Gallons; Asia Gallons; Western Europe 3.47 gallons
Region
Demand, Billion (Gallons /Year)
Per Capita Demand (Gallons / Year)*
United States
2.5
8.4
Latin America
0.8
1.8
Europe
2.8
6.9
Middle East
0.5
3.1
Africa
0.7
APAC
3.2
09-5.3**
Total
10.3
1.7