WATER INVESTMENTS

WATERBANK^® INVESTORS I

On July 1, 2004, WaterBank^® provided its private placement memorandum for the WATERBANK^® INVESTORS I fund with attorneys and financial experts for review.  This fund is a private placement for up to $25 million to take advantage of the opportunities that flow into our office.  We have assembled one of the most impressive teams of technical advisors in the water industry in the world.  Many of our advisors come from some of the largest water and wastewater engineering firms as well as academia.  All have years of high level experience.  We have also established a highly experienced management panel who are experienced in corporate finance, corporate acquisitions, public relations and water technology.  The total combined experience of our technical and management committees exceeds several hundred years. 

When the matter of foreign investment was raised with legal counsel, we were informed that under the U.S. Patriot Act, all investors and their principals must be screened against a list of individuals and companies maintained by the U.S. Department of Justice.  This is unfortunate but it is part of the effort to cut off the flow of capital to terrorist organizations.

Newspapers worldwide are filled with stories about water.  Either there is too much, or too little.  Water offers sound investment opportunities for strategic partners and knowledgeable investors. 

Some prestigious newsletters simply report on water problems.  Others provide legal analysis of water issues. They are reporting on matters that are already well known to insiders and usually after the fact.  They do not offer information at the nascent stage of a project or an issue.  Knowing who needs water or the development of a new technology capable of obtaining significant market share is just the beginningg.  One must understand the marketplace for the large number of technical problems and the existing technologies.  One must understand the physical supply of water and the regulatory framework.

Many investors in water are satisfied to invest in water and wastewater utilities.  These can be sound investments.  But, then again they may not be.  Take for example the tale of a well known company trying to buy its way into the water business.

It is staffed by MBAs and accountants who are trying to trade water like pork bellies but there is no futures market.  They made one good buy but their cash cow lost its milk.  Now where did they go?  Actually they went bankrupt.  You know the company. Their name was Azurix a subsidiary of ENRON

WATERBANK^®   OPPORTUNITIES

WaterBank^® will catalogue and investigate opportunities. It will create additional investor funds to take advantage of several prominent opportunities in each fund.

SOME OPPORTUNITIES

SOUTHERN CALIFORNIA

Company  owns desert surrounded by National Park.  They believe they have 10,000 acre feet per year of ground water.  Analysis by WaterBank^® experts suggests the property could probably produce 50,000 acre feet per year.  The water comes from an unregulated groundwater basin.  Municipalities 100 miles away would like to have the water but they are not interested in building the 50 mile pipeline to get the water to the nearest distribution point.  Water is presently selling for $480 per acre foot delivered.  The annual amortized cost of the pipeline and the annual operation and maintenance costs work out to about $325 per acre foot.  The difference of $155 per acre foot yields a $7.75 million net revenue stream annually for the investors to earn a good return and for the water owner to reap a good profit.   There is also enough of a price difference to offer good competition to other sources of supply the municipality may be lining up.

SAN ANTONIO AREA

Company has 4,000 acres of land above a very prolific aquifer.  The groundwater potential has yet to be evaluated but could be 15,000 acre feet per year.  The property is near a major rapidly growing city.   The property owner just purchased the land and has already been offered twice what he paid for it.  On learning of the value of the property, the owner reneged on the sale contract.  As of July, 2002, the matter is now in litigation.  If the buyer is successful in his suit he will be interested in partnering with someone to realize the greatest return possible.

PROPRIETARY GROUND-WATER EXPLORATION TECHNIQUES

AGW Consultants of Albuquerque, New Mexico has been involved in ground-water exploration worldwide for 30 years.  They use all of the standard geological and geophysical tools that everyone else uses, sometimes.  The usual methods include: fracture trace analysis, earth resistivity, magnetics, magnetotellurics, seismics, gravity, and earth conductivity. 

However, they usually use proprietary geophysical methods that has never been published for locating well fields and well sites.  One of these methods is Thermonics the other is Electromagnetic Pulsed Proton Relaxation or EPPR.

Thermonic requires high precision equipment that is not available commercially.  The Thermonic method involves significant know-how and the proprietary "valley mapping function" technology for data processing and interpretation. 

EPPR is capable of determining the depth and width of water-bearing zones.  It has been tested over water-bearing faults, in limestone terrane with a 700 foot dry hole at the test site and in an area containing interbedded sandstone and shale of Cretaceous age.  In all cases, penetrations to 3,000 feet were accomplished and results verified.

In addition, they have adapted some powerful oil and gas exploration methods to the search for groundwater.  They also use the relatively knew morphotectonic analytical method. 

The company has worldwide experience and they only take on clients when they feel they can guarantee results.  If they are successful, they charge a fee based on production or a bonus fee for each well drilled on their targets or in their identified well field area.

AGW seeks agents worldwide.  The also seek to conduct turnkey projects at their cost.  They would also accept offers for the technology from major water supply firms that could use the technology worldwide.

FRANCHISE OF PRIVATE WATER SYSTEMS IN TANZANIA

For the past 20 years international assistance agencies have been trying to bring safe drinking water to rural areas of developing countries.  These efforts have universally failed.  They have failed because of conflict between central governments and local political power, lack of equipment maintenance and failure to instill a profit motive into the project which give people an incentive for making a project continue to function.

Company has developed a business plan for bringing domestic water supplies to rural communities in Africa.  It plans to create a pilot project in Tanzania where it has developed close ties with the government.   There are 9,000 rural communities in Tanzania with an average population of 250 people.  The Company plans to hire local maintenance personnel in villages for simple day to day activities.  Regional maintenance personnel will cover larger areas and make more advanced service calls.  The Government of Tanzania will provide the boreholes.  The Company will provide solar powered pumping equipment.  Villagers will pay for the water with credit cards issued by the Government and distributed through local merchants.  Commercial water sellers will pay higher rates.  The Company requires initial investment of $500,000 to initiate demonstration projects in 10 villages.    Subsequent costs will be substantially lower on a per village basis.

WaterBank^® Investor Funds will pick up projects and technologies at the nascent level when high risk seed capital is needed and the profit potential is greatest.  Because of our distinguished international panel of technical experts and their affiliations we can evaluate the risks at this very early stage.  We can provide the correct direction to projects we choose to fund.

Our Private Placement Memorandum will be made available to qualified strategic partners and investors who contact us and request access to our documents online.  Our offering memorandum will be available and password protected on our website.

WHAT TO DO

If you would like access to our placement memorandum please contact us for a username and password.  You must be a potential qualified strategic partner or investor.

This is not an offer to sell or a solicitation of any kind.  The offering can only be made where law permits and it can only be made by the offering documents to qualified investors.  This web page makes no forward looking statements.

To contact us click here.

Visits since May 19, 2004

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