Oil and Gas Investment
!
Humble Salt Dome Field Project
Rework/Existing Oil & Gas Investment
Investment Opportunity
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
This investment opportunity offers a unique combination of existing oil production and the “rework”
of existing wells with a seasoned development and management team.
In many oil properties, such as the Humble Salt Dome Field, significant quantities of oil remain after
conventional recovery methods have been exhausted. Black Sands Advisers (BSA) has assembled a
team of experienced executives to develop and manage the reworked wells. Together the senior
management has over 150 years of oil and gas experience. In addition, BSA has teamed up with MI
Investments to assist in the financial structuring of the investment and investor participation.
MI is offering to investors a combination of current cash flow from existing commercially viable
wells that are producing income to provide our investors a 10% cash-on-cash return. and the
significant upside derived from reworking existing wells on the Humble Salt Dome Field. The
preferred return will run for six years at the end of the sixth year the Fund will return your initial
investment.
Rework of Existing Wells
Although the relatively high price of oil has increased competition for the acquisition of oil
properties, the United States portfolio of producing oil fields has matured over the last 20 years and
provides a rich inventory of fields that are still capable of being highly productive when the proper
recovery methods are employed. The Humble Salt Dome Field is arguably the most potentially
prolific mature field available on the Texas/Louisiana Gulf Coast. The Humble Salt Dome field is
located near Humble, Texas approximately 45 miles North of Houston, Texas.
BSA and BSA’s partners acquired the North portion of the Humble Field approximately three (3)
years ago and have spent millions of dollars preparing this field for enhanced production. During
the past year the BSA team has reworked ten (10) existing wells on the lease. This rework program
has proven that the existing wells have recharged over the years and that every well has
economically viable quantities of oil that can be recovered. Of the existing ten wells, three are in
full production producing over 60 barrels of oil per day yielding investors well over 20% per
annum. The other seven are in various stages of production/development.
Previously drilled depths of many wells are approximately 3000 feet in a zone known as the Upper
Yegua. The Upper Yegua will typically produce at a rate in excess of 10 barrels of oil per day.
These wells also have a zone known as the Lower Yegua; the Lower Yegua will typically produce
even larger quantities of oil per day. Our projects will involve the deepening of wells into the Lower
Yegua; if for any reason the Lower Yegua proves to be unproductive, we will go back up the hole
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
and re-complete the Upper Yegua. We feel confident that the lower Yegua will produce higher
qualities of oil based on our engineering reports and the lower Yegua’s historic production.
The north side of a Salt Dome is known for having greatest oil reserves. Interestingly, the north side
of the Humble Salt Dome has never been drilled due to the fact that the north side of the Dome is
under the San Jacinto River. In the 1950’s there were approximately 35 wells drilled along the edge
of the San Jacinto River; most of these wells had initial production of over 10,000 of oil per day.
The third well in this project is located near the edge of the San Jacinto River; and thus, has the
greatest upside of the three wells. Western Energy Group will re-enter this well and then drill
directionally under the San Jacinto River; they expect to encounter virgin formations; and,
potentially a large producing oil zone. If for any reason the trip under the river proves to be
unproductive, they will go back up the hole and re-complete the Lower Yegua.
LOCATON
THE HUMBLE FIELD
The Humble Field is located 20 minutes
north of downtown Houston off of US
Highway 59 and FM 1960. Below is a
surface location map of drilled oil wells on
the Humble Salt Dome Field. The field has
produced more than 150 Million Barrels of
Oil since its discovery. The Texas
Company, later renamed Texaco, has been
active in the field since the 1940’s and is
the largest producer in the field today. Due
to residential and other development, many
areas of the field have not been fully
utilized.
Bissonet Oil
Lease
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
GEOLOGY
The Humble Field is a predominantly deepseated pier cement salt structure, with the
salt rising to within 1200 feet of the
surface. The resulting salt intrusion or
“dome” formation created both structure
and numerous oil-bearing fault traps and
isolated reservoirs along the top and flanks
of the structure (see example of salt
structure).
The Humble field has produced more than
150,000,000 barrels of oil since 1905, with
more than 70% of this production from
Miocene sands on the cap rock at very shallow depths. The objective area is the “caprock transition
to flank sands”. This area takes advantage of the shallow sands with potential for migrating
hydrocarbons and reservoir recharging from the deeper flank sands (See video on website for more
information).
HISTORY
HUMBLE SALT DOME FIELD, Harris County, Texas
Humble Salt Dome Field was discovered in the early 1900s.
Bubbles of oil were first observed seeping from ground near the San
Jacinto River in 1887. Humble became an oil boomtown in the
early 1900s when oil was first produced there. The first oil was
produced a couple years after the famous Spindletop discovery in
Beaumont, Texas.
In the fall of 1902, George Hart spudded a well in the field on
evidence of escaping gas in the area. His operation was halted by a
blowout, an unexpected volume of gas under pressure that forced the
drilling equipment out of the hole. Blowouts were encountered in
several wells in the part of the field later called "the hill" and drilled
in the summer of 1904 by C. E. Barrett of Houston. Despite the menace of blowouts, some success
was found in the early field when Higgins Oil and Fuel Company brought in a large-volume gas well
half a mile southeast of the Barrett wells in October 1904. By the end of the year Humble field
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
reported two sporadically-producing oil wells that had yielded 2,000 barrels of oil. Since none of the
crude had been sold, it was stored in earthen tanks for use in the field. Even though blowouts
hampered field development, their threat was minimized by the invention of a blowout preventer,
which was in use by 1905 when D. R. Beatty drilled the No. 2 Fee. The well came in on January 7,
1905, and gave up the first gusher production in the field with a potential of 8,500 barrels of oil per
day from a depth of 1,012 feet. Other wells were sunk into the same shallow caprock, and some
showed potentials of 10,000 barrels of oil per day. From 1905 through 1913 development of the field
concentrated on the cap rock of the salt dome, producing at depths of 1,100 to 1,200 feet.
By 1955 annual production pushed past 600,000 barrels and by 1965 the totals neared 700,000
barrels of oil. After the Humble field reached its seventieth anniversary, Humble Light field was
added to it, and annual production for 1975 was 923,245 barrels of oil and 434,071,000 cubic feet of
casing head gas. Several secondary recovery projects, including salt-water injection for water flood
and pressure maintenance, steam injection for thermal recovery, fracture stimulation and gas
injection for attic recovery, were initiated in the field. At the end of 1985 annual production declined
to 453,125 barrels of oil and 268,060,000 cubic feet of casing head gas.
January 1, 1994, the Humble Field, one of the four early salt dome fields (that laid the baisis for the
Texas oil industry), reported cumulative production of 152M barrel of oil produced.
MANAGEMENT TEAM
Black Sands Advisers’ Management Team
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Black Sands is an oil and gas exploration and development company that specialize in acquiring oil
and gas rework properties as well as properties that are currently oil and gas in economically viable
quantities. Curtis Overstreet has been in the oil and gas industry in various capacities for over thirty
years and will serve as General Manager of this project. His resume is attached.
Curtis Overstreet
CEO/President
Mr. Overstreet has extensive background in oil and gas with an emphasis on the acquisition of
producing properties and the implementation of new technologies used to improve existing
production. Mr. Overstreet has gained valuable experience in the last 30 years in various aspects of
oil and gas development. Other key supporting areas include: CEO of a successful regional
exploration company, raised over $50 Million for various exploration companies, managed the
acquisition of dozens of producing properties, CEO of a publicly traded company, financial partner
of a small Exploration and Production company and leadership roles in over two dozen companies.
Mr. Overstreet was Co-Founder of the largest oil and gas software company in North America
(Petroware, Inc.). Mr. Overstreet served as CEO of a publicly traded company for over six years. Mr.
Overstreet has a commitment to positive relationships anchored in integrity and is motivated by a
desire to produce shared benefits for all parties involved. These characteristics have generated
successful results and many long-term strategic business relationships. He is a 1968 graduate of
West Texas State A&M University.
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Spectral Oil and Gas is an energy technologies company that uses proprietary nuclear logging tools
to find overlooked hydrocarbons in old oil and gas wells. These tools use advanced spectroscopy
detection to highlight hydrocarbons behind-pipe, allowing for cheaper recompletion of old wells.
Steve McGuire is founder and manager of Spectral, holds the patents on several of the technologies
that are used on this project and serves as Chief Scientist on the three well rework projects.
Steven S. McGuire
Steve McGuire has thirty years of experience in the fields of energy technologies, renewable fuels,
power generation, process systems, controls and infrastructure. He has funded and managed over
$200 million in projects that have integrated new technologies with the energy industry.
Mr. McGuire founded Spectral Oil and Gas, an energy technologies company that uses proprietary
nuclear logging tools to find overlooked hydrocarbons in old oil and gas wells. These tools used
mini-trons and chemical sources matched with advanced spectroscopy detection to highlight
hydrocarbons behind-pipe, allowing for cheaper recompletion of old wells. Spectral owns leases and
wells in the prolific Humble Oil Field that has produced over 100 million barrels of oil before 1930
and has begun to restore production to the flank of this salt dome.
Additional positions held by Mr. McGuire include Chief Executive Officer of Texogo Technologies
Corp., Former CEO of SAFE Fuels (Safe Renewables Corp.), Former CEO of Biofuels Power Corp.,
Former Chairman and President of energy technologies companies with over 300 employees and
1,000 wells in Texas, Louisiana Gulf of Mexico and offshore. Steve also was a senior engineer for
Schlumberger Offshore Services. He worked as a logging engineer and further developed training
and interpretation manuals and became a noted lecturer on using new technologies to uncover
overlooked oil and gas deposits.
Mr. McGuire attended the University of Illinois and received his Bachelor of Science (BS) in
Physics. He has written many technical papers, white papers, and business plans pertaining to the
energy industry along with holding several patents. Mr. McGuire works closely with various
research organizations including Southwest Research Institute, US Army Aberdeen Proving
Grounds, Austrian Research Center, China Lake Naval Test Facility, USAF Research Lab, Houston
Advanced Research Center and Rice University.
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Western Energy Group is an Oil and Gas exploration and production company based in Humble,
Texas. Western has been in operation for over thirty years and has successfully operated in the
Humble, Texas area for eight years. Paul Cothran is the founder and President of Western and will
the Operator on the three well rework project.
Paul Cothran
Mr. Cothran has extensive background in oil and gas with an emphasis on the exploration and
development of producing properties. Mr. Cothran has gained valuable experience in the last 20
years in these aspects of oil and gas development: Acquisition and development of and gas leases.
Remediation of under-performing oil and gas wells, Deploying of unique technologies to enhance
the production of oil and gas wells and Development of Texas Gulf oil and gas properties
Other key supporting areas include: Director of Technical resources for a large offshore oil and gas
company, worked with the University of Texas to run 3D seismic over state owned properties on the
Texas Gulf coast, managed the acquisition of hundreds of producing properties for several of the
major corporations in the oil and gas industry, and worked as an oil and gas land man. Mr. Cothran
has over eight years of experience in remediating oil and gas wells in the Humble Salt Dome area.
He graduated from Southwest Texas State University in 1986.
!
!
!
!
Br a z o s
" #$!%&' ( ) *+#' , !-, *.!!
!
!!!!!!!!!!
!
Brazos Land and Production is an Oil and Gas exploration and production company that specializes
in the acquisition of distressed oil and gas properties. Deane Watson, Jr. is the founder and President
of Brazos and is an oil and gas attorney and has operated as an oil and gas land man for over thirty
years. His resume is attached.
Deane Watson, Jr
Mr. Watson has extensive background in oil and gas with an emphasis on the acquisition of
producing properties and the implementation of new technologies used to improve existing
production. Mr. Watson has gained valuable experience in the last 25 years in these aspects of oil
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
and gas development: Acquisition of over 35 oil and gas leases with over 200 under-performing
wells, remediation of under-performing oil and gas wells, buying large oil and gas leases and
reselling them to large to mid-size companies, acquiring and funding large off shore oil and gas
leases.
Other key supporting areas include: Director of Business Development of a successful regional
exploration company, Board of Directors of a large regional telephone company, managed the
acquisition of dozens of small telephone co-ops, sold a large regional telephone company to one of
the! largest utilities in Texas, Board of Directors of two publically traded companies, and leadership
roles in over two dozen companies. Mr. Watson was one of the early pioneers in the Eagle Ford
shale
play
in North America (Petroware, Inc.).
!
! company
!
Br a z o s
" #$!%&' ( ) *+#' , !-, *.!!
He is a 1972 graduate of West Texas State A&M University and Texas Wesleyan School of Law,
Admitted to the State Bar of Texas in 1994.
!
!!!!!!!!!!
!
J&D Petro is an oil and gas operator that specializes in aggregating oil and gas production. J&D has
been aggregating and managing oil and gas producing properties for over twenty-five years. J&D
provides the technical resources to ensure that the properties continue to produce at optimum rates.
J&D will manage the producing properties for Black Sands Advisers.
M.I. Investments is a boutique investment entity focused in the Commercial Real Estate and Oil and
Gas sectors. Purpose: invest in sectors that provide long-term opportunistic returns, measurable
economic demand and risk.
Michael N. Mirolla
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Michael has over 25 years of hands-on commercial and residential real estate experience in the
following disciplines: underwriting, workouts, loan servicing, development, project management,
property and asset management, marketing, capital markets, finance and brokerage. In the last
recessionary cycle (1990s) he repositioned over three (3) billion dollars of assets developing “out-ofthe-box” revenue strategies and exits. Michael has had national and global responsibilities for
portfolio performance with career revenues/expenditures in the billions of dollars per annum
representing: multifamily, retail, office, hotel and land.
Michael has been a guest speaker at real estate functions and hired to consult on projects throughout
the country. Michael earned an MBA in finance from Rutgers University Graduate School of
Business where he was president of the student body. He received his BS from Seton Hall
University, Stillman School of Business. He was an Adjunct Professor of real estate for the masters
program at New York University School of Continuing and Professional Studies. He is a licensed
real estate broker in the State of New York and Nevada; and is a certified real estate instructor in the
State of New York. He is the chairman of the finance committee for a major political party in Clark
County.
Investment Cycle
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Investment Options
Unlike many investments, oil and gas direct investing offers three investment options:
 Direct Cash Investment

Self-Directed IRA/Pension Fund

1031 Exchange
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Each of the above referenced options require careful consideration and it is recommended that your
financial advisors, including but limited to a CPA, Tax Attorney and Estate Planner provide the
proper financial guidance prior to investing.
Pricing History 1985 - 2013
Note: Pricing Volatility of Gas & Oil Since 1985
Project Overview
BSA/MI Investments design each investment project to minimize the risk profile associated with
investing in the oil and gas sector. This unique financially designed structure has the following
three attributes: (1) reworked wells tend to be a more consistent investment based on patented oil
reserve discovery technology and existing historic oil production logs; (2) revenue from existing
proven producing wells providing each investor a minimum fixed return (investors will earn a return
the first month the fund is operational); and (3) based on the price of oil and the production per well,
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
the investor may earn up to 21% per annum until the end of the sixth (6) year. The investor’s capital
is returned (see Exit Strategy) and the investor earns a distribution for the remainder of the project
life estimated at 15+ years.
Minimum First Year Return
Investors will enjoy a minimum return of ten (10) percent cash-on-cash return first year earned by
the purchase of existing oil reserves. The oil reserves acquired, will produce a 10% return which
will be paid to the investor, 1/12th starting in the first month acquired. In addition to the fixed return
to the investor, the revenue produced from the reworked wells will be distributed once they start
producing.
Exit Strategy - Return of Capital
MI Investments has created exist strategies for our investors depending on the level of investment
funded. Every investor that invests in a fund will receive their principal returned in the sixth (6) year
investor will exit receiving 100% of their principal via GICP.
Note: EACH INVESTOR UPON RETURN OF CAPITAL IN THE SIXTH (6) YEAR WILL
CONTINUE TO RECEIVE DISTRIBUTIONS THROUGH THE LIFE OF THE INVESTMENT.
Tax Advantages
The following IRS tax advantages are granted to investors that fund direct oil and gas projects. Note:
additional tax credits and depreciation is available that is not listed below.
Oil and Gas Production Income: Depletion Allowance is 15% TAX FREE INCOME (minimum
15%) with the percentage determined annually by the IRS based on average price of crude oil and
other factors. For wells that meet certain marginal production guidelines set by the IRS, percentage
deductions can be as high as 25% of the gross income produced by the well. (Please see IRC
Sections 611, 613, 613A(c)(6) for more information).
Intangible Drilling Costs (IDC): The primary expense incurred in oil and gas partnerships is for
drilling, testing, and completing the oil or gas well. These costs can be deductible for tax purposes.
IDC can vary from 65% to 95% of total unit cost. Our example estimates 90%.(Please see IRC 98 –
Code – Vol, Sections 263(c)(e)(2) and 59(e) and Treasury Regulations 1.612 parts 4 and 5 for more
information).
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV
Tangible Drilling Costs (TDC):
Approximately 15% - 30% of the investment constitutes “TDC’s”. This portion of your investment
is depreciated over a 7 year period using the Accelerated Cost Recovery System (ACRS).
Tax Advice Disclaimer: The information on this website should not be used in any actual transaction without the advice and
guidance of a professional Tax Adviser who is familiar with all the relevant facts. Although the information contained here is
presented in good faith and believed to be correct, it is General in nature and is not intended as tax advice. Furthermore, the
information contained herein may not be applicable to or suitable for the individuals' specific circumstances or needs and may require
consideration of other matters.
Disclaimer
This document does not constitute an offer to sell or a solicitation of an offer to purchase. This
business overview has been prepared by Black Sands Advisers and MI Investments (“the Parties”)
solely for information purposes and is not to be used as a basis to form an investment decision. The
business overview is neither an offering document nor are any guarantees expressed or implied by
the Parties regarding the success of the venture described in this business overview. The information
contained in this business overview does not purport to be all inclusive or to contain all of the
information that a prospective investor may require. This business overview includes certain
statements, estimates, projections and assumptions that reflect management’s subjective views
regarding the anticipated future performance. Such statements, estimates and projections reflect
various assumptions concerning projected results, which may or may not prove to be correct, and
there can be no assurance that any projected results will be achieved.
Contact Information:
MI Investments
Michael N. Mirolla
Managing Member
D: 702.608.7020
Black Sands Advisers - Richardson, TX
MI Investments - Henderson, NV