About Dunwell Corporation

Written by Robert Anderson, Investor

Background, Niche and Timing

The Dunwell Corporation; where integrity meets opportunity in a niche oil business.

The philosophy is simple, avoid dry holes, reinvest the majority of the recurring revenue back into added production until your cash flow meets goal. The question is how do you avoid dry holes and how is it possible to find properties where production is enough to make it a worth while investment? The answer is a niche where older proven reserves meet new technology for exceptional reoccurring revenue.

In the early years of the oil business it was oil scouts who would go around and ask farmers if their well water had a certain smell or if there was any seeping black stuff in the area then wildcatter (independents) would drill in the area. These oil rich fields and the surrounding areas were bought up and tied up by those with money which are now some of the largest oil companies in America. Robert Duncan’s father was in the land business and one of the people that tied up land and then sold it to others to drill for oil more than 50 years ago. Robert as a young boy learned much about mineral rights, oil leases and geology from his father. This knowledge has served Robert Duncan well to this day. Besides where oil was coming out of the ground, there was still a lot of new oil to be found. As the price rises it becomes worth while to look for new production in lower producing and higher risk areas. This practice still occurs today. These lower producing higher risk areas are what most investors are offered as an investment in today’s oil exploration market.

The Oil Embargo causes a turn of events.
It was a turn of events that has now caused today’s opportunity with the Dunwell Corporation. As you may have expected, it was the U.S. Government that created the problems that has now led us to an opportunity.

In the early 70’s there was an oil embargo and the decoupling of the U.S. dollar to gold, causing oil to shoot up in price. Many independent oil drilling companies, including Robert Duncan, participated in order to take advantage of the rise in oil prices. Large oil companies on the other hand started looking and drilling for oil off the coasts, in Alaska as well as looked into oily sands (shale) for their profits. The large oil companies needed large producing fields to make it economical for them to invest millions or even billions of dollars. If they were going to focus their huge infrastructure and overhead on production, they needed large expansions of properties to work with for years going forward. This is one reason why offshore and Alaska were key targets. So here comes the 80’s, the oil embargo is history and oil prices have dropped. The economics of the lower oil producing properties that small independents focused on were no longer viable. The large oil companies now had Alaska and the associated pipeline in place as well as some offshore production, but the economics were over. The U.S. government in their wisdom hit the oil companies with a special tax (The Wind Fall Profit Tax) while the environmentalist pressured Congress to throw up road blocks to offshore and excessive drilling in Alaska. At the same time OSHA regulations became more stringent causing costs to rise. So what did extra regulations and costs cause the Large Oil companies do? It drove the large companies outside of the U.S. to start looking for oil in more economical and politically friendly areas.

The past U.S. Government and environmentalist’s pressure has now created an opportunity for Robert Duncan, the Dunwell Corporation and you in the oil business today? Remember the very first independents that found the large productive properties that the wealthy (now large oil companies) bought up or tied up in the early years. These properties still exist. They have been controlled by the large oil companies all of these years. Although the large oil companies have had control of these areas, the economy of scale is gone. The large oil companies are no longer that interested in spending the time and money to dig up a few opportunities that may have fallen between the cracks as pressures have just made it too cost prohibitive. The government has added so much red tape and regulations on large oil companies that they actually keep the larger oil companies from producing on a small scale. This has given those like the Dunwell Corporation, a window of opportunity as the large oil companies loosen or let go of their hold over the mineral rights in some of the best producing areas in the U.S.A.

There are several reasons why this successful 63 year old veteran oil man is now back and focusing on oil production. The key reason, however, is simply timing. Robert knows the old timers in these well established productive areas. These old timers know how to dig up opportunities from the library (rather than the computer) and can identify with using ground work in order to find pockets of production. Robert understands the unwinding process presently occurring and knows how to properly tie up mineral rights. In addition, Robert knows the oil drilling business. He feels it is much wiser to spend time and money and finding and tying up the right properties and then oversee those he hires to drill and complete the wells rather than put money into the oil drilling equipment. Developing and participation more in the long term production rather than making quick money from the drilling or promotion is the Dunwell Corporation’s goal.

Philosophy, Making A Profit (MAP) and controlling costs, KISS, Investors

Company Philosophy
The Dunwell Corporation’s business philosophy is simple, drill where there is oil, USE TODAY’S PROVEN TECHNOLOGY TO MAKE THE COMPANY AND INVESTORS MONEY. Don’t drill dry wells!

With over 35 years of experience, Robert Duncan, President of Dunwell Corporation, would rather drill where there has been proven infield oil production, rather than attempting to find a new track. This reduces the biggest risk for oil investors, dry holes. Everyone wants a great return on their investment, but few can afford to lose all of their money on dry holes. “We try to minimize our investor’s risk by drilling where there has been proven success. With today’s technology, there is no reason an investor should take huge risks, unless they are looking for 50 to 1 exploration wildcat shots. There is no such thing as a sure thing when drilling an oil well, but we try to give our investors the best possible odds to not only make money, but more importantly not lose their money.

Making a well and making money are two different things. You can have a good well, but if your cost for the investment is too high you will not make a profit.In the oil industry, many times companies are representing (promoting) other people’s project. There is nothing wrong with this, some people only raise money while others only develop projects. However, it doesn’t stop there. Many times a project will have gone through several different hands before someone calls the retail investor. If a project is good and is not kept in house (Rare and called an industry deal), a project is sold to a promoter and then at times resold to a sub-promoter and possibly sold again. Costs are added in several times before the street views the package. By the time a good project gets to most investors, the price could be so high, that the well’s return may not make financial sense. Most packages that retail investors see are marginable and the good projects are typically over priced.

Dunwell keeps costs down and profits up!
The Dunwell Corporation researches to find a property, buys the land or mineral rights and puts together the package that the investor is offered. Dunwell is personally vested in finding and having profitable projects since Dunwell participates in part of the well with the investors. Dunwell hires all the necessary sub-contractor’s to do the work and oversees the project from conception to production. At times, Robert Duncan, he will park a trailer on location in order to oversee the project, on site during critical stages of drilling and completion. As one who has owned a drilling company (see bio. on www.dunwellcorp.com), Mr. Duncan knows the ins and outs, the truth and the con when it comes to drilling and drilling contractors. In short, you get a well drilled and completed at a truly fair price that allows an investor to make a profit and reasonable rate of return.

One at a time, but more than one opportunity!
When investing with Dunwell, the investor has “first right of refusal” on the additional wells drilled on the same track. Many times, when developing a project, acreage is tied up for a minimum of two additional wells. We always plan on the first well producing so other wells can be offered to the original investors as an exclusive offering. However, Dunwell does not sell multi-wells as there is no guarantee the first well will be successful. The worst decision you can make as a driller or investor is being forced to pay for drilling when you know the odds are poor of a producing well. That is unless the promoter’s profit is from selling the project to the investor and not from the production of the well.

KISS (Kept It Simple Stupid)

1. Keep risk to a minimum. Research and find a quality prospect where oil has been under developed. Research, research, research!!!
2. Buy the land or mineral right at a good price or don’t buy it. Control enough land before drilling the first well to be able to add wells in the area without paying a premium for the land.
3. Offer an investor a chance for a very good return while keeping the risk low.
4. Offer the package as a turn-key so the investor knows up front their financial requirements.
5. Keep the costs down and under control by hiring and watching good sub-contractors.
6. Drill one well at a time and know what is there, before drilling a second well on property.
7. Offer the second and then a third well to original investors that invested in the first well drill on the track.
8. Research, research, research and offer a new project.

The importance of investors
Always try to drill quality projects in order to make the investors successful and happy. Robert Duncan, President and founder of Dunwell Corporation, fells that loyalty lies within the investors. “It is the investors that make it possible for me to do projects and achieve my goals; the investors deserve my gratitude, loyalty and a biggest piece of the pie”.

My goal is to create a large long term cash flow tied to the price of oil. I am uncomfortable with what might happen to the value of the U.S. Dollar in years to come, but I know oil will always have intrinsic value. Even if oil was not used for energy, there will always be an ongoing demand for plastics, medicine and roads, etc. There are only a few places in the world where an individual can own oil. The United States of America happens to be one.

There are only so many projects the Dunwell Corporation will offer each year. Robert wants to make sure each well is carefully chosen and brought in properly. This limits the amount of wells that will be offered, as his time is finite. This also means the amount of investment needed is limited. Because there is a limited amount of investment needed and Robert considers the investors to be the most important, therefore, are specific rules that Dunwell has implemented.

1. Past investors get the first opportunity at new projects.
2. It is a first come, first serve, regarding the buy in and it is money in hand that counts, not the ones that promise to send in the money first.
3. As justified, we will try to offer each project as a minimum of two or more wells that could be addition to the project if the first well is deemed successful.
4. No investor can own more than 10% of any one project, usually less.
5. If an investor decides not to go into one of the added oil wells on a project, the existing investors have first right of refusal for his share. If more than one wants to buy his share, it is divided equally between those investors.
6. Once there is enough investor to fulfill the Dunwell Corporations financial needs, additional investors will have to be placed on a waiting list until there is additional availability.

The Dunwell Corporation and specifically Robert Duncan, believes every project offered to the investors is exceptional. It is import to understand why and what makes the company different. If an offer is presented to you, you can be assured that the offer is one of quality. Timing is everything and I hope that when an offer is made to you, it is something that you can take advantage of.