Industry

Real Assets

Company Type

Mining Non-Metals

Size

$58  Million

Investment Type

Equity
For important risk and disclaimer information, Click Here.

PARSONS ENERGY GROUP

Overview

Parsons Energy Group is seeking $58 million to develop a fracking sand mine in Wisconsin. Total cost of $64 million

Project Cost

Phase 1:  Pre-development, plant design:  $9 million;


​Phase 2:  Development:  $55 million Expected to supply long term sustainable fracking sand at best value from over 120 million tons of Northern White frac sand reserves Size of deposit and favorable production conditions expected to produce a minimum of


Key Highlights  

Third party quantity verification of 120 million Tons of reserves with large mineral reserve ratio to capital development costs


“Shovel Ready” – All permits approved and active


Production capacity of 2.5 million short Tons per year upon completion with additional egress options to increase production to 10 million Tons per year


Exclusive Supplier Agreement with a Native American-owned supplier providing a competitive advantage in the Bakken Region through TERO regulations.

PARSONS ENERGY GROUP

Location/Value

Location

Located in Trempealeau County, situated entirely in Independence, WI – approximately four miles north of Arcadia WI and one mile east of State Hwy 93


Value

Appraisal completed by Integra Realty Resources in February 2021 places the “As is” market value of the mine at $189 million, and a prospective market value as a “Going Concern” upon completion to $300 million

PARSONS ENERGY GROUP

Opportunity

Northern White Frac Sand is the Preferred Fracking Sand

Recognized worldwide as the preferred fracking sand due to its superior quality, equating to superior performance creating significant demand


Declining Supply 

Bakken Market – Ft. Berthold Indian Reservation (A sovereign nation unaffected by US Government directives)


Forecasted 2021 demand for frac sand is 11.2 million tons (on reservation)


​MHA Nation TERO regulations require companies to do business with Native American entities at preferred pricing opportunities


​Native American frac sand suppliers have a captive market vs Non-Native supplier Marcellus Market


Sand can be barged to the Marcellus resulting in less expensive product vs rail transportation via other suppliers

PARSONS ENERGY GROUP

Solution/Strategy

Leverage on Competitive Advantage: Leverage PEG’s competitive advantages to gain a profitable share of the frac sand market


Leasehold Rights: Leasehold rights to 120 million Tons of Northern White reserves near Independence, Wisconsin


Scalability: Develop a 2.5 million ton per year facility and make it scalable up to 10 million Tons per year


Leverage on Strategic Location: Access to four Tier 1 rail lines and major river transportation via barge


Supply/Offtake Agreements: Exclusive supplier agreement with a Native American-owned supplier licensed to conduct business on the Ft. Berthold Indian Reservation in the Bakken region in North Dakota

PARSONS ENERGY GROUP

Competitive Advantage

Customer/End User are not subject to current Federal administrative directives

Customer/end user is a 100% Native American owned company doing business on the Ft. Berthold Indian Reservation of the MHA Nation, subject to TERO regulations


TERO as defined by the MHA Nation Laws

Enables the tribe to exercise their inherent sovereign powers by imposing Indian preference on employers working on or near the jurisdictional bounderies of the Three Affiliated Tribes


Note: Tribal lands are a sovereign country; exempt from the current US administration’s executive orders Oil & gas in the tribe’s main revenue stream.​

PARSONS ENERGY GROUP

Supply/Customers

Exclusive Supply Agreement

Parsons Energy has an Exclusive Supplier Agreement with a Native American-owned supplier providing a competitive advantage in the Bakken Region through TERO regulations


Established, mature markets in the U.S.

Bakken market – Ft. Berthold Indian Reservation (A sovereign nation unaffected by US Government directives)


Native American frac sand suppliers have a captive market vs. Non-Native suppliers


Market Expansion

Barge access on the Mississippi River opens up oil and gas markets in the Marcellus region in the eastern US as well as international markets

PARSONS ENERGY GROUP

Management

Rick Parsons

Extensive management skills


Career with Bechtel Group, Inc. (largest privately owned EPCM company in the world) included the management, operation and construction activities for nuclear facilities with budgets in excess of $14 Billion


Part of the senior leadership team on Bechtel’s management teams for Department of Energy National Laboratory Facilities in multiple states


Key management roles for international work in Bechtel’s Mining & Minerals Division,Petroleum & Chemical Division, and for  the construction of US Embassies worldwide


Formed consulting company(Parsons Management Group, LLC), which has developed commercial real estate specific to Department of Energy security requirements in excess of $60 Million.

Randy Smith

Extensive business knowledge and experience in all disciplines of engineering and construction


Founder and Presidentof Northcon Inc., a successful and award-winning EPCM & GC organization successfully performing work since 1992,currently exceeding $75 million annually nationwide. Includes Federal, State, Commercial and Private Projects throughout the United States


Completed over 1,700 construction projects while leading Northcon’s growth, providing a trusted partner in project completion for its customers.

PARSONS ENERGY GROUP
Learn More About This Transaction

0 Comments

Leave a reply

Your email address will not be published.

*

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

Sending

Log in with your credentials

Forgot your details?