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21 st Century Clean Energy Centers

21 st Century Clean Energy Centers. Quantum Energy & Bilfinger westcon Present. Who is Quantum Energy?. QUANTUM ENERGY, INC . is a development stage publicly traded diversified holding company with an emphasis in oil field development trading under the stock symbol “QEGY” on the OTC.

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21 st Century Clean Energy Centers

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  1. 21st Century Clean Energy Centers Quantum Energy & Bilfingerwestcon Present

  2. Who is Quantum Energy? QUANTUM ENERGY, INC. is a development stage publicly traded diversified holding company with an emphasis in oil field development trading under the stock symbol “QEGY” on the OTC. Specializing in: • Land Holdings • Oil & Gas Holdings • Refinery Development

  3. Quantum Energy Corporate Facts • August 12, 2004 – Filed SB-2 public offering. • May 30, 2006 - Changed its name to Quantum Energy, Inc. and acquired interests in the Barnett Shale area of West Texas. • February 28, 2009 - Terminated its Barnett Shale interests. • June 20, 2013 - Stan Wilson appointed as Chairman and sole officer and director and given controlling shareholders proxy. • June 25, 2013 – Acquired 100% of FTPM Resources, Inc. from Mr. Wilson who received 200K shares (80%). • November 15, 2013 – 150 to 1 forward split record date. • March 22, 2014 - Andrew J. Kacic appointed to the board and named Chief Executive Officer.

  4. 21st Century Clean Energy Centers QUANTUM ENERGY, INC. proposes to develop five 21st Century Clean Energy Centers throughout the Bakken field with each to include: • a 20,000 bpd diesel refinery; • a separate adjacent 100k bbd processing plant to strip the NGL’s from the crude for development of the local propane, butane and fertilizer markets; and • the latest CO2 capture technology to reduce emission regulation while providing injection supply of CO2 for enhanced oil recovery (EOR). • Projected refinery annual revenue (five Centers): $3,329,451,860 • Projected NGL Crude Processing annual revenue (five Centers): $182,500,000 • Projected CO2 Capture EOR annual revenue (five centers): $262,500,000 • Combined Energy Center annual revenue (five Centers): $3,774,451,860 • Combined EBITDA: $882,160,030

  5. 21st Century Clean Energy Centers Refinery • Refinery: 20,000 barrel-per-day diesel refinery that produces 7,000 bpd of ultra-low sulfer diesel. The scope of the refinery is an atmospheric topping plant, naphtha stabilizer, distillate hydrotreater, 668,000 barrel tank farm and supporting facilities. The project will have an integrated truck loading rack and will produce ultra-low sulfur diesel fuel to be distributed locally, with the secondary products shipped by rail to other refineries or end users • Proven Bakken crude supply producing 1,000,000 barrels per day and a proven local diesel demand for 75,000 barrels per day of diesel consumption that is only being served by 27,000 BPD of local Bakken refined diesel (Tesoro and MDU) • Proven substantial price advantage (transportation/shipping advantage) to locally refined diesel fuel versus crude transported to the coasts to be refined and shipped back to the Bakken

  6. Refinery Project of Similar Scope Dakota Prairie Refinery – Dickinson, ND • Dakota Prairie Refinery, when complete, will be the first greenfield refinery built in the U.S. since 1976. • The refinery will process 20,000 barrels per day of Bakken crude oil. • Construction of the diesel refinery, on a 318-acre site located west of Dickinson, N.D. is expected to take approximately 20 months. • It will employ 400 to 500 employees during peak construction and about 100 employees when it is operating. • Total project costs are estimated to be approximately $300 million.

  7. Refinery Project of Similar Scope Dakota Prairie Refinery – Dickenson, ND Estimated Completion December 15, 2014

  8. 21st Century Clean Energy Centers Crude Splitting - NGL Stripping • An adjacent atmospheric tower facility that uses the refinery infrastructure to process crude by stripping NGL’s to reduce volatility and increase the safety of Bakken crude rail transport. • Renders the processed crude as capable of being exported under existing U.S. law to allow worldwide export directly from the Bakken Williston Basin. • Stripped NGL’s can be used for the local market of propane, butane and fertilizer. • Processing fee of $1.00 per barrel when processing 100,000 bpd per Energy Center. Quantum anticipates potential additional revenue from the marketing of the processed NGL’s though marketing agreements with its producer customers.

  9. 21st Century Clean Energy Center CO2 Capture – Enhanced Oil Recovery • Capture and use the CO2 Greenhouse Gases for Enhanced Oil Recovery (EOR) to produce oil and gas in the region by using the latest technology that will provide Quantum with a ready supply of CO2 for sale as a well injection source that has been proven to enhance oil production successfully in other oil fields. • The CO2 has a demonstrated market value of $70 per compressed ton that is pipe ready. Quantum expects to capture 750,000 tons per year per Energy Center @ $70 per ton for a total of $52,500,000 revenue per year per energy center and 3,750,000 tons per year for all five energy centers @ $70 per ton = $262,500,000 of CO2 revenue per year. • The capex for the CO2 capture technology equipment is $60 million per each of the five Energy Centers.

  10. Who is Bilfinger-Westcon? • Industrial Project Specialists – HQ in Bismarck, ND and founded in 1981 by Mark C. Peterson • Purchased by Bilfinger Berger (Mannheim, GER) in July 2012; 2013 Revenue of 8.6 Billion Euros ($11.3 Billion USD) • No history of client lawsuit or liability • No history of Subcontractor lawsuit or liability • No LD penalization • 85% of work is repeat business or client referral • Successful project execution working with Engineering Firms • Received a national award for “Dispute Resolution” • Turnover rates less than 2% historically • Project Management and Development Company for the Dakota Prairie Refinery Project in Dickinson, ND – Currently completing the construction

  11. Corporate Headquarters Bismarck, ND Oskaloosa, IA Canton, OH Piqua, OH

  12. Quantum Bilfinger-Westcon Alliance • Land Acquisition • Site Selection • Strategic Alliance • FEED-Package • Permitting-Package • PFD’s • Plot Plans • Design Basis • Preliminary Schedule Phase l Phase II

  13. Quantum Bilfinger-Westcon Alliance • Detail Engineering • Constructability • ±10% Estimate • Detail Schedule • Execution • 500 – 600 Construction Jobs • 100 Full-time Employees Phase III Phase IV

  14. Quantum Energy Project Projected First Year Earnings Per Single Energy Center Financial Summary * Refinery $665,890,534 NGL Processing $36,500,000 CO2 Capture $52,500,000 Total Revenue $754,890,534 Cost of Goods Sold $546,998,528 Gross Profit $207,892,006 Operating Costs ($31,460,000) EBITDA $176,432,006

  15. Quantum Energy Project Capital Requirements 20,000 bpd refinery: $350,000,000 per refinery NGL Processing: $60,000,000 ($30 million per 50,000 bpd facility) CO2 Capture: $60,000,000 ($10 million per 20,000 bpd) Total Five Centers: $1,750,000,000 five refineries $300,000,000 five 100,000 bpd NGL processing $300,000,000 five CO2 capture facilities Combined total: $2,350,000,000

  16. Quantum & Bilfinger-Westcon are at the forefront of development in the Bakken, Join Us. With projected annual net earnings of over $70 Million, a strong project management and development team, and an experienced engineering and fabricating organization experienced in construction and operation in arctic conditions, our 21st Clean Energy Centers will be well-positioned to be economically viable for the foreseeable future. QUANTUM ENERGY, INC. 60 East Rio Salado Parkway Suite 900 Tempe, Arizona 85281 Stan Wilson, Chairman stan@quantum-e.com 480-699-0009 BILFINGER WESTCON INC.7401 Yukon DriveBismarck, ND 58503 Bill Bradley, Project/Program Director bill.bradley@westconindustries.com 701-222-0076 Andrew J. Kacic, CEO 815 Main Street Williston, North Dakota 58801 andrew@quantum-e.com 701-651-6614 www.quantum-e.com www.westconindustries.com

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