The South Plains Petroleum, Inc. offering is now closed and is no longer accepting investments.

South Plains Petroleum, Inc.

Rediscovering Energy

Regulation Crowdfunding
Abilene, TX
Business to Business
Accepting International Investment
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Investor Snapshot

Company Description

South  Plains Petroleum, Inc. uses modern technologies to re-evaluate and reprocess data on old oil and gas wells to rediscover remaining reserves. This approach increases the Company's returns on investment by reducing outlays for exploration and infrastructure costs. Relying on a team of seasoned professionals, management has achieved a significant track record of successes.

Key Highlights

  • We hold Options to Purchase substantial oil and gas reserves which include 17 existing wells and over 50 developmental well sites containing over 8 million barrels of oil and gas equivalent from affiliated parties.
  • Upon Filing of this Crowdfunding, the Company closed on over $3 million worth of interests in 10 existing wells with development acreage.
  • Upon completion of a fully subscribed Offering, SPP will have an international Board of Directors with over 100+ years tactical experience in the key areas of Oil well/field evaluations  and internet marketing. 

Security Type

Common Stock

Price Per Share

$1.60

Pre-Money Valuation

$8.313M*

# of Employees

4

*Contingent upon the certain events throughout the course of this campaign, up to 17,500,000 additional shares of common stock may be issued, resulting in a post-money valuation of $37.7M assuming a fully subscribed offering (subject to adjustment for bonus shares).  See details in Offering Terms below.

5% Bonus Shares


If you invest $1,600+, you will receive a 5% bonus.

Invest

10% Bonus Shares


If you invest $3,200+, you will receive a 10% bonus

Invest

15% Bonus Shares


If you invest $6,400+, you will receive a 15% bonus.

Invest

20% Bonus Shares


If you invest $9,600+, you will receive a 20% bonus.

Invest

Our mission is to build shareholder value by acquiring distressed or undervalued proven developed and undeveloped oil and gas assets in the US that offer the greatest potential returns. To create and build a dividend paying public oil and gas company that investors want to own and hold.

The Problem

Invest in South Plains Petroleum, Inc.

The United States is blessed with natural resources, oil and natural gas chief among them. Since the 19th century, this abundance has shaped America into both the leading oil and natural gas consumer in the world, and a leading global producer. Oil and natural gas have literally fueled the modern era and the importance of these two commodities to our economy cannot be understated. That's why, despite the shift towards renewable energy sources, the oil and natural gas industries continue to grow.


As the demand for cheap energy has risen, the industries have had to find new ways to keep production high. For a long time, while exploration and development were less expensive, the easiest course of action was to plug an under-performing well and drill a new one, leaving good resources in the ground written off. While the industry has moved on to horizontal drilling and fracking to increase production, South Plains Petroleum knows there's still substantial value in those old well sites.



The Market

The Oil and Gas Market

The U.S. is both the world's largest oil consuming nation and the world's largest natural gas consuming nation, consuming nearly 913.3 million metric tons of oil and 27.1 trillion cubic feet of natural gas in 2017. In recent years, the Oil and Gas Extraction industry has been challenged by a decline in oil and natural gas prices and a slow demand due to an oversupply in the market and  weaker global economic growth. According to the IEA (International Energy Agency), they believe the US will enjoy the biggest oil and gas boom ever in the next few years and by the late 2020's, the US will become the undisputed global oil and gas leader for decades to come. This growth is expected to be the result of a strong rise in demand as China, India and SE Asia all turn away from coal to cleaner energy sources. 


Sources:
http://fortune.com/2017/11/14/us-oil-and-gas-boom/
https://www.statista.com/topics/1706/oil-and-gas/



The Solution

The South Plains Petroleum, Inc. Approach

Rather than gamble money on risky exploration, South Plains Petroleum identifies older oil and natural gas deposits with proven production records for re-development. Many times, by using new technology and/or simply modern equipment, South Plains Petroleum can take a defunct well, shut down due to lack of production or technical issues, and bring it back online. The process requires a fraction of the original investment and is ultimately low-risk, creating a win-win scenario for both South Plains Petroleum, and their shareholders.


Right now, South Plains Petroleum is a small oil and natural gas producer focusing on this redevelopment approach. Knowing just how vast the potential for this market is, we believe, with your help, South Plains Petroleum could be transformed into a major American oil producer and a driving force for revitalization of our older oilfields.



The Business Model

How does South Plains Petroleum, Inc. work?

When it comes to oil and natural gas production, South Plains Petroleum works just like any other oil and natural gas company: we own wells, we operate those wells, and then we sell what comes out of them. But that's about as far as the similarities go.


Small companies might own a couple of wells and distribute locally, but their focus is on maintaining the wells they already operate. Large companies take a global approach, engaging in high profile exploration and large-scale well operation. But there's very little in between. That's where we come in.


South Plains Petroleum seeks to fill that middle ground by focusing on production and redevelopment while relying on exploration undertaken in the past. We identify wells that have been shut down for mechanical or economic reasons in areas with known oil and natural gas deposits. Despite their status, many of these wells still have considerable reserves left and, with the right technology and practices, can be brought back into full production quickly and for little expense.


By targeting prospects which have successfully passed a vigorous checklist, we significantly lower development costs. And by sticking with conventional wells and formations, our wells generally have lower decline rates than tight formations (shale) horizontally drilled thereby creating long-lived cash flows, value and returns to our potential shareholders.




The Roadmap

What is South Plains Petroleum, Inc.?

South Plains Petroleum, Inc. has 2 Option to Purchase Agreements for the acquisition of the assets from 2 successful oil and gas companies.  The management of both companies had similar approaches to risk which led them to synergize their Texas and Louisiana assets.  Together, they are creating a company which is dedicated to delivering returns to its shareholders and micromanage risks.  Our management will continue to take advantage of modern technologies by applying them to historical well and production data in areas where wells or entire oilfields were shut down for one reason or another – economic, mechanical or managerial – and abandoned to find oil and gas left behind. South Plains Petroleum purchases those wells and redevelops their assets with modern technology, leading to the production of significant revenue streams from the regular production of oil and gas. Though there is risk inherent in any oil or natural gas venture, we believe by using pre-established offline wells, we lower the associated risk significantly, greatly reduce development costs and thereby reward our shareholders.


South Plains Petroleum is a traditional oil and gas production company with regard to how it earns revenues, but that is as far as it goes. The company does not attempt to produce tight reservoirs which require substantial investments in horizontal drilling and fracking. Nor does it engage in exploratory drilling or wildcatting.  Instead, the company micromanages its risks by engaging in what we believe to be the lowest risks possible and works to develop proven assets into reliable revenue streams.  Because of the size of the oil and gas industry, there are many of these type properties just waiting to be rediscovered.



The Marketing and Sales Strategy

The South Plains Petroleum, Inc. Vision

The United States is not only the leading oil and natural gas consuming nation on the planet, but also one of the largest producers of both commodities. In fact, the United States' current oil production, far outstrips any other time in our history. Now is the best time to be in the oil and gas industry


South Plains Petroleum aims to bring as many oil and natural gas projects online as possible, first from our Optioned wells in Louisiana and Texas, and then through further acquisition. While we are more of a development company, rather than an exploration company, we currently contract a team of geologists to re-survey abandoned wells. We are always looking for new places to expand.


With the funds made available through this equity crowdfunding campaign, we plan to turn-on additional wells from our Optioned inventory and create new revenue streams to sustain the company and allow it to grow, if needed, solely from its own revenues. Once our current wells are re-equipped, production is expected to more than double based upon recent test results and the majority of these funds along with cash flow will be used for redevelopment and expansion of our existing fields and wells.


As a private oil company, we cannot leverage our reserves, only our production. But as a public company with your investment, we think we'll be able to increase liquidity and put our reserves on the books, with the goal of significantly raising our net worth. With our knowledge and expertise, we believe that with each well we place back into production will increase the value of the Company.  Our success will be your success.


Our size and nimbleness allows us to find these hidden gems and act on them quickly. With this advantage, we expect the Company to grow quickly and steadily.  We believe that all it will take is this one crowdfunding campaign to springboard us into the future.



The Competition

The South Plains Petroleum, Inc. Advantage

According to our research, South Plains Petroleum is one of the few companies to operate with this approach in the United States and because of that, we have nearly unfettered access to wells in these decrepit states. These underperforming and abandoned wells are burdens on the companies that own them, both financially and physically. That’s why, with little competition in this area, we can make outstanding acquisitions to the point that in some instances, they give us the wells for simply accepting the plugging liabilities. 


Upon the filing of this Crowdfunding, South Plains Petroleum will close on and own substantial known oil and gas reserves which are partially developed.  Within the past 5 months, tests on one of the wells in Texas was conducted which more than doubled existing oil production using new equipment. Utilizing funds from this offering South Plains Petroleum plans to outfit the remaining wells with similar equipment and repairs from which it expects to see similar results. 


Make no mistake:  With the acquisition of the Texas wells and properties, we have an established foundation from which to grow the Company and with your investment, we can jump start the process.



The Financials

Monthly Cash Flow Growth!

There are few businesses in which the opportunity realistically exists to grow from an acorn to a mighty oak tree inside 5 years. However, the oil industry is one of those. Generally it happens with a big discovery, but in South Plains Petroleum’s case, we believe it can happen based upon the assets in hand being placed back into production and the remainder of the properties developed. While we are limited in what we can project, it is safe to say that as oil prices rise, production increases and the Company is not investing today's cost to acquire or develop these properties, our return on investment should be substantially higher than if we had to first find the oil, drill the well, build the roads, build the pipelines and build the storage facilities in order to start production.


Completing the Swenson #9 Well



The Team

About South Plains Petroleum, Inc.

South Plains Petroleum, Inc. was first the vision of several oil and gas executives who had a goal of pooling several of their most successful assets into a company whereby they could access capital not easily available to each individually.  Thus, South Plains Petroleum was founded.  Having succeeded in establishing a system that more often than not resulted in profits, they decided that with the current swing in oil prices it was time to go big.  Richard Quintal, utilizing his business background pushed to create not just another company, but one that would leave a legacy.  


Shortly after taking control of South Plains Petroleum, he was introduced to Nicolas Boatwright who had also been pursuing a similar path in acquiring existing wells and reworking them, only Nic's playground was South Louisiana's deeper wells.  While the deeper wells offered greater returns, they also came with greater costs.    


After several meetings, Nic and Richard agreed to pool their efforts as it was a win win situation: Nic and his Louisiana oil properties would join the Company after it had acquired the Texas Properties and returned them to production.  Thus, South Plains Petroleum would have cash flows from the Texas wells which could be used to turn on the bigger and deeper Louisiana wells and Richard would remain onboard as a Board Member to see his vision fulfilled.

Finding Gushers is a passion both men share.  To the right is the Swenson 1A well April of 2018 blowing oil.



The Investment and Use of Funds

Why You Should Invest in South Plains Petroleum, Inc.

In many ways, South Plains Petroleum is just like any other traditional oil and natural gas company that relies on regular production and sale to make a profit. What sets us apart is that rather than spending precious resources on exploration (trying to find the oil) and infrastructure (building pipelines and roads to the fields) development, we focus on overlooked oil and gas reserves in wells that have, for one reason or another - economic or mechanical - gone off the market. By acquiring these wells and implementing modern technology, we can increase physical production at these sites quickly and produce significant revenue streams through the traditional production of oil and gas.

 

South Plains Petroleum implemented shareholder friendly bylaws requiring dividends be paid when oil and gas prices exceed certain levels – something unheard of that will help protect shareholder value.  


We expect our current inventory of wells will provide consistent sources of revenue once re-equipped and returned to production.  The tasks of returning the wells to production ranges from something as simple as pulling tubing and replacing a joint which has a hole in it to replacing a pump jack with a jet pump to move more fluid to a bit costlier task of running a 4 1/2 inch liner inside 7 inch casing to stop it from leaking.  All are normal daily operating procedures.  We believe our model is as low risk as you can find in the industry.

 

With your investment in our equity crowdfunding campaign, we can skip years of development and production, and get right to expanding.  With your help, we can change the face of the American oil and natural gas industry forever.

 




Offering Summary


Company

:

South Plains Petroleum Inc

Corporate Address

:

402 Cypress Street, Suite 809, Abilene, TX 79601-5156

Offering Minimum

:

$10,000.00

Offering Maximum

:

$1,070,000.00

Minimum Investment Amount

(per investor)

:

$480.00











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

6,250

Maximum Number of Shares Offered

:

668,750

Price per Share

:

$1.60

Pre-Money Valuation

:

$8,313,208.00











*Maximum subject to adjustment for bonus shares. See Bonus information below

Investment Bonuses

If you invest $1,600+, you will receive a 5% bonus.

If you invest $3,200+, you will receive a 10% bonus.

If you invest $6,400+, you will receive a 15% bonus.

If you invest $9,600+, you will receive a 20% bonus.

The 10% Bonus for StartEngine Shareholders

South Plains Petroleum Inc. will offer 10% additional bonus shares for all investments that are committed, within 24 hours of this offering going live, by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 in the StartEngine Reg A offering which closed earlier this year.

StartEngine shareholders who invested $1,000 or more in that StartEngine Reg A offering will receive a 10% bonus on this offering within a 24-hour window of this offering’s launch date. This means you will receive a bonus for any shares you purchase. For example, if you buy 100 shares of Common Stock at $1.60 / share, you will receive 110 Common Stock shares, meaning you'll own 110 shares for $160 Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors received their countersigned StartEngine Crowdfunding Inc. subscription agreement.

Irregular Use of Proceeds

We will not incur any irregular use of proceeds.

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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$320.00 USD
USD
Cash And Cash Equivalents
$320.00 USD
USD
Accounts Receivable
$0.00 USD
USD
Short Term Debt
$0.00 USD
USD
Long Term Debt
$0.00 USD
USD
Revenues And Sales
$0.00 USD
USD
Costs Of Goods Sold
$0.00 USD
USD
Taxes Paid
$0.00 USD
USD
Net Income
-$80.00 USD
USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Material Change in Offering

3 months ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the South Plains Petroleum, Inc. offering. Here's an excerpt describing the specifics of the change:


The company is running a concurrent Regulation D offering for a total of $1,500,000.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Funds Disbursement

4 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, South Plains Petroleum, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in South Plains Petroleum, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Notice of Funds Disbursement

5 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, South Plains Petroleum, Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in South Plains Petroleum, Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Show More Updates End of Updates

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