PATENT PENDING Clean H2O Wastewater/oilfield produced water back to drinking water gallon for gallon
PATENT PENDING Clean H2O Wastewater/oilfield produced water back to drinking water gallon for gallon


Strategic Business and Marketing Plan






Cronus Resources Group LLC

8955 Katy Freeway, Suite # 101

Houston, TX 77024

866-235-9366 or 832-226-4301









Cronus Resources Group LLC

Business Summary




1.0 Executive Summary


The purpose of this business plan is to raise the necessary capital to build and operate water processing centers in Oil and Gas producing shale areas of the US The investment cost to build and put into operation one processing center is approximately $35,000,000 (Thirty five million dollars).   Cronus plans to build a minimum of five treatment centers in 2015. By 2020 we expect to have as many as 200 treatment centers in operation. We have showcased the expected financial returns and operation costs over the next 5 (five) years. Cronus Resources Group LLC (Cronus) is a Texas based Limited Liability Corporation that can process practically any contaminated water back to drinking water standards in particular, but not limited to produced water, re-flowed frack water, brackish well, sewer lagoon water, mining water and other contaminated produced water within United States. The Company was founded by William Peoples.


1.1 The Process


Cronus has developed a patent pending process by which most contaminated produced water from the drilling, producing or mining of hydrocarbons can be processed into drinking water with less than 200 PPM or less. This "Eco-Smart Technology" will revolutionize the hydrocarbon production industry.   Whether fracking an oil or gas well, mining for minerals or recovering old contaminated water from pits.  This process will allow the industry to begin to function in an environmental acceptable manner.  There is NO doubt that this patent pending process can and will change the dynamics of waste water disposal.  This technology, when properly applied, can and will significantly reduce or eliminate the need to dispose of contaminated water by down hole injection.  Thereby, significantly reducing the frequency of earthquakes in or near oil producing communities.  Additionally, this process, will reduce the likelihood of the contamination of water wells, reservoirs or waterways.


It should be noted that at all times, Cronus will comply with all applicable federal, state, and local laws (including OSHA) in order to ensure the safety of all employees.



1.2   The overview


Cronus has identified several major issues with produced water from the drilling, production or the mining of hydrocarbons.


  1. Most companies that use hydraulic fracturing processes when drilling oil and gas wells used to require fresh water for that process. However, due to some of the issues that are listed here many companies have begun to use brackish water or recycled produced water for the fracking process. Several issues that have created this change in the dynamics of water use are:


                        A.  Many  areas are running out of fresh water to supply these companies.

                        B.  Many areas are either limiting the amount of contaminated water that can be
                             disposed of or are trying to eliminated entirely the process of pumping                         contaminated water down hole, (as is the case in the States of                                            Pennsylvania and Oklahoma), even at a premium price.  In fact, Oklahoma                         has begun shutting down disposal facilities.  Other states, like Texas, has                                changed regulations so that the State could shut down injection facilities.

  1. Many regulatory agencies are becoming more strict and more strongly enforcing regulations.
  2. A recent Report by Rice Univ states that  “The quality of shale gas produced waters is a current environmental concern and disposal problem for producers.”
  3. The USGS, and other studies, have shown that the disposal of waste water is a leading cause of earthquakes. A class action law suit was just filed in Oklahoma against several oil producing companies for operating recklessly and causing damage to homes , businesses and water reserves.



1.2 Financing


At this time,  Cronus is seeking $ 4,000,000.00 (four million) to complete a pilot project.  This pilot will not only be profitable. But, with it in place and up and running as a “show and tell”  Cronus will be able to make a very fast impact in the marketplace.   Upon completion of the aforementioned pilot project Cronus will be seeking                 $ 35,000,000.00 ( Thirty Five million) of private funds for manufacturing of each of the "Eco-Smart Technology processing centers The suggested location for these centers here in the US been determined to be:

  1. The Permian Basin Region in Texas
  2. The Eagleford Shale Region in Texas
  3. State of Oklahoma
  4. The Barnett Shale Region of Texas

Additionally, Cronus believes that it will have as many as 100 locations in operation by 2020.

Tentatively, Cronus is seeking to sell a 20% equity partnership or loan in exchange for the capital sought in this business plan.  The financing will be used for the following:

*     Manufacture of each processing units that will process 2,000,000 gallons of contaminated fluid a day.

*     Purchase of lease land in the regions necessary for the installation and operation of these each processing plants.

*      All operational and start up costs associated with each Eco-Smart Facility



1.3 Mission Statement


The Cronus mission is, by the use of their Patent Pending "Eco-Smart Technology" to revolutionize the water  processing industry. More specifically, to allow companies involved in any type of production of hydrocarbons to reclaim their contaminated water, reduce their  use of Potable water supplies and to allow them to return  their waste water back into the product with which they started, "DRINKING WATER".


Furthermore, Cronus believes that they can do this in a cost effective, yet, profitable manner.


1.4 Management Team


The Company was founded by William Peoples. Mr. Peoples completed his undergrad studies at Central Missouri State Univ.  He later completed his post graduate studies at Arkansas State Univ.  Mr. Peoples has more than 20 years of oil field management and production experience. Mr. Peoples has been able to draw from a large group of consultants in the industry.   Through his expertise and relationship with other professionals and businesses, he will be able to bring the operations of the business to profitability within its first year of operations. Mr. Peoples is the holder of all intelligent property of this venture.  Mr. Peoples currently has 4 patents pending and is in the process of filing 2 more applications.


Robert W. Roten is a member of the management Team.  He is a graduate of the University of Texas.  Mr. Roten was an executive with Monsanto Chemical Company for over 25 years.  Mr. Roten was a founding member and major investor of a major start up chemical manufacturing and trading company, Sterling Chemicals.  Mr. Roten was the CEO and Chairman of the board of Sterling for many years.


Nigel Ekern is another member of our management team.  Nigel completed his undergrad studies at Dartmouth University.  After graduation he completed his JD and MBA at New York University. (NYU)


1.5 Sales Forecasts


Mr. Peoples expects a strong rate of production growth at the start of operations. After completing a pilot project.  (already under contract) Cronus believes that they can grow 10 fold in 3 years and 100 fold in 10 years.


1.6 Expansion Plan


Cronus plans to aggressively expand during the first five years. The business will be very profitable  as soon as the processing plants begin to go on line. Cronus will make substantial re-investments into the company. The acquisition of new customers as well as the increase in contaminated water that needs to be processed in many locations will allow Cronus to flourish.   As the regulations become more strict and the need to process increases Cronus believes that it will be the leader in the industry.



2.0 Company and Financing Summary

2.1    Registered Name and Corporate Structure


Cronus Resources Group LLC is a registered  Limited Liability  Corporation in the State of Texas.

2.2    Required Funds


At this time, Cronus requires $ 4,000,000.00 to complete a pilot project in Texas.  Then, upon completion of this pilot project (6 months or less)  Cronus will seek another $ 35,000.000.00 ( Thirty Five million) of equity funds per facility to be built.


2.3 Current Status


At this time Cronus is in negotiation to build water processing facilities in the Permian Basin region of West Texas to process  the produced and re-flow water.  Cronus has a letter of intent from a company in the Permian Basin.  Cronus has 2 locations for a pilot project.  Both are in Texas.  One is from a waste water recycling pit of 1000  barrels a day from a Fortune 100 company.  The other is from a disposal facility that disposes of 25,000 barrels a day of contaminated water.


It is believed that due to current studies and regulatory issues that are coming very quickly in the industry that Cronus is positioned to revolutionize the produced water industry.  Cronus is the only company that has a complete full circle, environmental sound sustainable solution.  Cronus is able to process contaminated water at a high rate of speed and do it in a cost effective manner.


Cronus will be able to severely reduce or eliminate the crisis of continually pumping our natural aquifers, depleting our natural resources.


Cronus will be able to severely reduce or eliminate the need to pump contaminated fluids into a disposal well, causing earthquakes and contaminating our sources for drinking water or more.




2.3 Investor Equity


At this time, Cronus is seeking to sell a 20% equity interest in exchange for the capital sought in business venture.


2.4 Management Equity


After the requisite capital is raised, Cronus will retain a 80% ownership interest. 



2.5 Exit Strategy


Cronus has discussed and planned for three possible exit strategies:


The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the oil extraction industry maintains a moderately low risk profile once the business is established Cronus feels that the Company could be sold for fifteen (15) to thirty (30) times earnings.


The second exit scenario would entail selling a portion of the Company via an initial public offering (or “IPO”). After a detailed analysis, it was found that comparable companies sell for ten to fifteen times earnings on the open market. However, taking a company public involves significant legal red tape. PE&E. would be bound by the significant legal framework of the Sarbanes-Oxley Act in addition to the legal requirements set forth in form S1 of the Securities and Exchange Commission. The Company would also have to comply with the Securities Act of 1933 and the Exchange Act of 1934.


The last exit scenario would involve the use of a private placement memorandum to raise additional capital from private sources. This is also a significantly expensive process that requires the assistance of both an experienced securities law firm and an investment bank. Funds would be raised from private equity and merchant banking sources in exchange for a percentage of the Company’s stock.



2.6 Investor Repayment Structure


The investor will receive a 20% of net profit.



3.0 Water processing Operations


Cronus hasidentifiedseveralmajorissueswithproducedwaterfromthedrilling, productionortheminingofhydrocarbons. (Also stated in 1.2)


1.  Most companies that use hydraulic fracturing processes when drilling oil and gas wells require fresh water for that process.  Which has created several  issues.


                 A.  Many areas are running out of fresh water to supply these companies               due to over pumping natural aquifers. (As is the case in the State of Texas)

       B.  Many areas are either limiting the amount of contaminated water  that            can be disposed of or have entirely eliminated the process of pumping          contaminated waterdown hole.  (as is the case in the State of Pennsylvania).  Some states are limiting the amount of lease water (saltwater) can be pumped down-hole.

       C.  Many  entities are beginning to limit  the amount of fresh  water  that                          can  be sold  for drilling, even at a premium price.

                   D.  Many  regulatory agencies are becoming more  strict  and  are                          beginning to more  strongly enforcing regulations.


4.0 Innovative Sustainable Solutions


Cronus has developed a patent pending process by which most,  if not all, contaminated produced water from the drilling, producing or mining of hydrocarbons can be processed into drinking water with less than 200PPM.  This"Eco-Smart Technology" will revolutionize the hydrocarbon production industry.  Whether hydraulically fracturing an oil or gas well, mining for minerals or recovering old contaminated water pits this process will allow the industry to begin to function in an environmentally acceptable manner.  In fact, standard everyday lease water (saltwater) can be transformed into drinking water as opposed to pumping it down-hole.


It should be noted that at all times, Cronus does comply with all applicable federal, state,and local laws (includingOSHA) in order to ensure the safety of all employees.

 4.1     Strategic and Market Analysis

 Cronus has reviewed studies and reports that indicate serious issues lie ahead in the contaminated and fresh (drinking) water markets.

 It has been shown that the depletion of fresh water aquifers is nearing crisis level in many areas.  In Texas there are a few small towns that are almost out of water.  This is partly due to the sale of fresh water to oil companies for hydraulic fracturing needs.  In fact, Forth Worth's water supply is at a critical stage now.  San Antonio has allocated  $ 3,800,000,000.00  ($ 3.8 Billion) venture to install a 142 mile pipeline for brackish water. We could build our plants around San Antonio and provide the same gallons per day from produced water for less than $ 800 Million.  And the oil companies would be paying for the processing.  Not to mention the City of San Antonio would not be taking on the massive liability of a 142 miles of pipeline pumping saltwater over farmland.


Contaminated water and lease water (saltwater) for years has been pumped into disposal wells.  However, in the State of Pennsylvania, Oklahoma and California the States are reducing or eliminating the ability of these companies to inject contaminated water into disposal wells.  All of the contaminated and lease water (saltwater) is being transported to other regions for disposal at a significant expense.


These issues will only become more severe as time passes.  Many states are now considering regulations to limit or eliminate hydraulic fracturing due the above listed seemingly unsolvable issues. 


However, Cronus has the ability to provide significant innovative solutions to both of these issues.

 4.1 Economic Outlook

 This section of the analysis will detail the economic climate, the oil extraction industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

 Cronus has products within its process that are patented or patent pending.  To our knowledge there is NOT another company that can provide a process by which contaminated water can be clean to within drinking water standards in a safe, economical and environmentally acceptable manner. The major issue is cost to process.  Cronus can process most water at or about the same cost being paid today by companies for disposal.

 Cronus originally thought that processing facilities that could process about 500,000 gallons a day would be viable.  However, during recent studies and research we have found that we will need to increase our processing to 2,000,000 gallons a day.  Even at that rate there will still be a need to expand most facilities within the first 24 months as the water needs increase.

 4.2     Industry Analysis

This patented process will revolutionize the oil and water industries. Furthermore, as the dynamics of this industry evolve the market for recycled distilled and drinking water will increase.  With regulations becoming more strict and some oil companies having to halt production due to lack of waste water holding capacity the market price for processing could increase significantly.

 This is a multi-TRILLION dollar industry.  With just one processing facility running at just 2,000,000 gallons a day will return in the first 36 months over $ 30 million in net profits.

 The investors have sought the safe haven of commodities in lieu of the value of the dollar. This demand is expected to remain strong in the face of inflationary pressures.  However, as the economy begins to recover the need for energy independence becomes greater. With the overall plan of the USA to become oil independent the future of oil production is clear.  There is no place to go but up for a long long time if you are ready and producing oil. 

 Therefore, with the increase of hydraulic fracturing as it is today Cronus needs to quickly position itself to be a major player in that market.  Additionally, oil companies are now seeking to increase production by going back to older wells and re-fracturing them.  Thus, increasing the need for water processing.  Additionally, as oil pricing gains strength and with the new additional reserves discovered it is in the best interest of all parties to move forward as quickly as possible.

 4.3 Customer Profile

 Any oil, gas or mining company that produces any water of any kind with any contamination needs Cronus.

 Any municipality that has a need for additional sources for drinking water needs Cronus.

 The environmentalist need Cronus. 

 The regulatory agencies need Cronus.

 The World needs Cronus.

 Cronus is going to help save the world.  One drop at a time !!!

 4.4 Competition

 As of today there are only 2 companies that have to ability to clean contaminated water to within drinking water standards.  Both of those companies are in a legal binding relationship with Cronus.  With our system added to the other processing systems there is not another company that can process the contaminated water to the degree and with the speed that Cronus can and will. Other companies are just making dirty water “less dirty”.  At Cronus we actually clean and purify it.

 Most other process system run into 100% rejection of water over 40,000 PPM.  Our system has been proven to be able to process water of over 347,000 PPM.  And we clean that water back to less than 100 PPM.  An independent third party laboratory result is available.

 5.0 Marketing Plan

 The marketing campaigns required by Cronus are minimal as the business will sell itself.  The need for water recycling and purification is just now entering into the market place.  Many other companies in the past have treated water.  But, always had a need to pump excess contaminated solutions into a approved injection well.  Cronus can reduce that amount drastically if not completely eliminate it.  Where others stop is where Cronus starts.  They put their reject water into a pit for disposal.  We can pump that water up and process it back to drinking water standards.

 5.1 Marketing Objectives

  • Cronus has established relationships with oil producers and operators within the targeted market.
  • Cronus has a  relationship with a top law firm that will assist in all of its business functions.
  • Cronus has had positive discussion with the Texas RRC, TCEQ, Parks and Recreation Dept and congressmen in multiple states. In addition, some higher ranking officials in government are very positive about Cronus' process and value.
  • Cronus has verbal commitments from several Fortune 100 companies.
  • Cronus has a commitment from an owner of 26 disposal sites in the Eagleford Shale region.
  • Cronus is in the process of strong positioning in the Permian Basin Region.
  • Cronus has a letter of intent from a disposal facility in the Permian Basin.
  • Cronus has a commitment from a major producer in the Marcellous Shale Region.

 5.2 Pricing

 Cronus can process and produce the highest quality of water for the oil industry in a pricing range that is comparable to or less than the market pricing today for standard produced water disposal.  The re-flow water can also be processed at a competitive cost of disposal today.  While there are many varibles in the processing of water the typical cost per barrel is less than $ 1.00.

 6.0 Financial Plan

 6.1 Underlying Assumptions

 The Company has based its proforma financial statements on the following:


  • Cronus will have a revenue in excess of $ 30,000,000 in first 3 years.
  • The Founders will acquire $35,000,000 of equity funds to develop the business.
  • Cronus will sell a 20% equity interest in exchange for the requisite capital sought in this business plan.
  • Investor would receive a tremendous revenue stream of profits in this business.

 7.0 Conclusion

 In conclusion, this project is a very low risk and high reward venture.  With over 18 years in research and development Cronus will be able to be very profitable for a long time.

 The water issues in America and in the oil field are not going away.  They are only going to become more serious. Cronus will be positioned to process water in a profitable manner for a long time.

 Laboratory Summary

 Cronus Resources Group LLC

Houston Texas

July 26, 2016


In 2014 we received a sample of reflow frac water from a top five major oil company operating in the Bakken region.  This produced water is known as some of the worst in the world for contaminates.  We acquired these samples to test our new innovative process that we believed was a practical solution to water recovery and disposal issues that loom in the oil industry.  What we learned was amazing and will change the dynamics of water recovery and processing in many areas, not just in the oilfield.

 While other processing methods have been used for many years it is well known and documented that they are very expensive and are not very efficient.  Produced water from the oilfield contains extremely high levels of suspended solids, metals, carbonates and chloride salts. 

 The best technology used currently begins to fail at just over 35,000 PPM.  Produced water from the oilfield can contain contaminates of over 300,000 ppm.  Our process is the only one that can take water at these contaminated levels and not just make it reusable in the field.  But, through our process we can return this water its original drinking water state.

The sample that we received contained over 230,000 PPM of TDS with other contaminates totaling over 374,000 PPM and was cleaned through our patent pending process to less than 100 PPM.


Some of the initial test data is listed below:










39.9 MG/L


38.8 MG/L


39.9 MG/L


17.2 MG/L


233,333 MG/L




733 MG/L




140,000 MG/L




1266 MG/L


12.8 MG/L


0.26 MG/L




383 MG/L
























140 MG/L




1,047 MG/L




6,433 MG/L




71,333 MG/L




40,333 MG/L
















17,587 UG/L


239 UG/L


17,933 UG/L


548 UG/L


18,273 UG/L


628 UG/L


18173 UG/L


628 UG/L


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