Oil and Gas Manufacturing and Services Co.

Oil and Gas Manufacturing and Services Co.

Russel Oil and Gas Valves Co. Inc.

Executive Summary

Russel Oil and Gas Valves Co. Inc. is another organization that was framed by two previous oil and gas workers. Both have broad involvement in the specialized some portion of seeing every one of the parts of the business.

In light of a venture by financial specialists, both accomplices plan to raise $3 million dollars; this will go toward the setup of the organization, assemble the required creation offices, and contract the staff. 

The area Russel Oil and Gas Valves Co. Inc. will be working in is the valve business. The items and administrations will be particular to the oil and gas business. The accomplices composed an uncommon in valve organization that takes into account better stream of the fluid in the channel lines. At this moment the stream is impeded by 23% taking into account concentrates on. This new patent-pending connection will diminish the impeded fluid by 19%. In light of studies this will mean a normal increment in income by $768.00 per moment of stream. 

There have been letters of interest marked by significant oil and gas organizations for the item we will be creating. In 2008 there was an extraordinary hit to money markets and oil went down to $55 per barrel from a high of $125 a barrel in 2007. We will likely have a plant up and running mid 2010.

Company Summary

Russel Oil and Gas Valves Co. Inc. was built up by as of late laid–off workers of Shell Canada. Ben Wedge and accomplice George Russel both were laid off following 10 years with Shell Canada. While both lamented leaving the solace of an unfaltering wage of work of a huge firm, they understood this was an incredible chance to take their extensive severance pay and take the risk to begin an organization they both discussed while cooperating for Shell. 

The primary center of this firm will be to take items from existing suppliers of valves to the oil and gas business sector, and afterward alter the manufacture of the end stream units that control the supply and weight pretty much as the gas leaves the valve At this moment this is finished by the introducing organization. The establishment by the organization of this is finished by a welder on location building one expansive channel custom to the funnel line, where the valve is being introduced. This moderates done the valve establishment a lot. We trust our procedure will take into consideration us to dispense with this through and through.

Company Ownership 

Russel Oil and Gas Valves Co. Inc. was set up Ben Wedge and accomplice George Russel. Both accomplices will be 24% shareholders, totaling 48%; the equalization of proprietorship will be new speculators in the firm. The accomplices are willing to surrender possession keeping in mind the end goal to secure the financing required to get the business off the ground. 

The organization will be enrolled in Ontario as a Limited Liability Company and joined along these lines from that point.

Start-up Summary 

The organization will be begun by speculations from every accomplice of $50,000. This will add up to $100,000 as start-up capital, alongside another $100,000 from an outside financial specialist who has as of now been brought on board. This speculator has consented to take a 10% value stake in the organization in return for this venture. Extra financial specialists will be offered a lesser stake in return for speculation with the two accomplices and the primary substantial financial specialist who claims 10%. 

The accomplices have as of now picked an area to work their office out of, alongside the required offices that will be utilized to fabricate the items the firm will be offering. Russel Oil and Gas Valves Co. Inc. accomplices both have building foundations. This permitted them to draw the plans for the valve item. Hence the following stage will be result of the unit available to be purchased to the end clients.

Products 

Russel Oil and Gas Valves Co. Inc. has outlined various items it will offer to the oil and gas market. Here is the thing that has been outlined and is holding up to be fabricated.

• Gas valve connector for way out
• Gas valve connector for passageway
• Oil valve for way out
• Oil esteem for passageway
• Minimize valve slower
• Flow valve constrictor

Every one of these units is new to the business sector today; that is the principle reason the substantial oil and gas firms procure or have on staff welders who uniquely design these as they are required.

Market Analysis 

This is a replacement market product, with no real product on the market at the moment. we have a tendency to perceive that after we have a tendency to hit the market can|there'll} be competitors WHO will see the market and check out to enter it. the dimensions of the market annually supported range of pipeline comes being either created or serviceable.

We believe the market size for our product and services to be $1,000,000 within the initial year, then $3,000,000 year 2 and as our services and product become a lot of wide known  our third year sales can rise to $5,000,000.

Market Segmentation 

With the oil and gas market being therefore high, we've outlined the market we tend to ar going once as a awfully little niche market. Our phase are going to be within the valve market. This being solely alittle a part of the trade, at the side of the actual fact that our product ar solely to be alittle phase of this space.

We perceive there ar the water and steam similarly industrial applications for our products; however we are going to solely concentrate on the oil and gas business for the primary five years. If, as we tend to move on, we see that entering into these alternative markets are going to be advantageous for US {and we tend to|and that we} have the specified staffing and funding with out moving our core market, we tend to might then go in these alternative markets.