Arete - What We Do

Arête Industries, Inc. is a business development company focusing on traditional oil and gas projects, alternative and renewable energy, and management mentoring for emerging growth stage companies.

Arête is building a consortium of diverse expertise in its advisory board, including investment and merchant bankers, investment advisors, portfolio and fund managers on the one side, and project developers and technology owners on the other, to plan and implement projects that match the chosen investment criteria developed by this consortium with attention to socially responsible investment principals, practices and behaviors.

Arête's business plan relies on its financial model of developing third party funding sources and in-house financial vehicles for direct investment in energy projects. Because of the wide margin between the cost of extraction and production and the price of energy, projected out into the future, successful projects can be highly leveraged to generate further needed capital for project completion and new project acquisition. Arête plans to initially use revenues from fees and participation interests, as well as sale of its own securities to secure development capital to pursue these projects, developing them sequentially to produce increasingly self-sustaining and self-sufficient sources of capital, as the projects generate cash flow to provide return on equity and cover debt service.

To begin, Arête is pursuing projects that have significant upside potential and can produce significant revenue in a short period with relatively little initial investment. As the projects are developed, Arête, or entities created by Arête, will have ownership interests in the revenue streams, which can be securitized and collateralized to private debt holders, enabling the company to continue to fulfill its ongoing financing requirements as well as initiate new projects.

Traditional Energy

Arête has been presented with a number of oil and gas, alternative, and renewable energy projects that will provide the value proposition to attract equity and debt capital into the company, allowing it to continue to acquire similar projects building cash flow and assets for the company. Equity and/or debt investors will benefit from a broad portfolio of projects invested in by the company, and Arête shareholders will continue to benefit from capital appreciation as well as potential dividend distributions.

Arête is launching an ambitious plan fueled by the belief that the energy sector is returning to prominence and that it will do so behind those that can re-discover and exploit bypassed and overlooked reserves in known producing fields. We believe that the potential returns from development of this opportunity will far outstrip investment returns in any other sector of the economy. We intend to leverage the opportunities and expertise we have in this sector to internally generate investment capital that will contribute to the evolution of our society both domestically and internationally by advancing new technologies for alternative and renewable energy. The underlying philosophy is based on our experience beginning with the OPEC Oil Embargo of the late 70s and 80s and the Middle East Conflict to the urgency of the international and environmental crises we are experiencing today.

Alternative Energy

We believe that a strong financial commitment to oil and gas projects will provide financial means to promote alternative and renewable energy projects in a principal as well as a consultative capacity, which we see as both a socially necessary endeavor and a high-growth, emerging industry sector. Our strategy is to provide financial and executive level expertise to developers of the 'New Energy', and to engage in opportunities by originating and coordinating project financing for discrete projects.

Arête has identified several Alternative and Renewable Energy Projects presenting opportunities to immediately engage in booked projects of corporations interested in being acquired by a publicly held company and desiring to become public in their own right in the near future. Such opportunities will provide revenue and infrastructure as well as human capital to expand Arête's own capabilities in this arena. They will also provide a base of assets and revenue that can be securitized to provide independent funds for direct investment into future projects.

Management Mentoring

Arête provides director level input in areas of business plan development, corporate finance and capital structure, financial and management systems and information, as well as business, marketing and financial plan analysis and helps implement appropriate corporate governance systems based on the real-world experience of its management team and directors. Arête brings its corporate, securities, and investment banking experience to the fundraising process in preparing companies to go public through a carefully designed and properly executed strategy that takes its clients public when real, fundamental values are achieved, maximizing the market capitalization of the client at the time it goes public.

Registered Dividend Spin-off or Rights Offering Programs

Arête actively recruits companies and projects that require an affiliation with a public company and/or an exit strategy through a publicly traded vehicle to attract financing, sponsoring investors, technology providers, or customers. Arête is prepared to initiate an acquisition transaction for such suitable entities, including registration of a dividend spin-off or rights offering for the acquired entity, and is willing and capable of providing comprehensive executive and board level management support during the process of going public.