CY Production | Application Preview
CY Production is seeking government grants to support its operations during a challenging period for the oil and gas industry, worsened by the COVID-19 pandemic. The funding is intended to cover payroll for the first 1.5 years and to further develop a new real-time wireless reservoir monitoring system, which is ready for field trials but requires additional investment to address potential issues.
The company aims to grow its conventional production packer business, targeting a revenue of $100,000 per month and a 40% field operating profit (FOP) over the next five years. Once stable, the focus will shift to finalizing and marketing the wireless monitoring technology while also emphasizing sales efforts to attract new clients.
Given the current downturn in the oil and gas market, CY Production still manages to generate over $1.2 million annually, relying on a market currently affected by low oil prices. However, projections suggest a recovery with prices expected to rebound above $60 per barrel in the near future. The company believes it has significant growth potential as the market stabilizes.
In terms of competition, CY Production faces established players like Weatherford, Halliburton, and Baker Hughes. However, its lean operational structure allows it to navigate the market without the burden of heavy infrastructure or high management costs. The requested funding will enable the company to manage inventory and operate sustainably until it can convert its cash flow into longer payment terms.
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General Information
Business Registration Number: 832829262
Location: Seguin, TX, United States
Length of Operation: 1
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
The funding will be used to float all payroll through the first 1.5 years. Any revenues or available funds will be used to work on finishing the new technology development of a real time wireless reservoir monitoring system. This system is ready for field trials and will need additional capital to work out any bugs that may occur.
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Business Plan
In the next five years i plan on growing the conventional production packer business from the start. Working at fop of 40% and $100,000 per month in revenue. Second phase once the business has stabilized do final development and marketing of new wireless reservoir monitoring technologies And market. While each individual in the company has primary responsibilities secondarily sales calls will be expected to develop new clients in order to increase product and service revenue. Currently in the depressed oil and gas market and with the covid-19 crippling the industry i am making 40% fop and annual revenues in excess of $1,200,000. It is a sound business with a huge upside when the economy returns to normal business. $1.2m is without any additional growth in customer base or increase in activity. Current sub $40 per barrel west texas intermediate is what my business revenues are based on. All market projections are showing a balance of over $60 bbl within the next year. This market will recover as travel and manufacturing also recover and consume more hydrocarbon.
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Self Identified Competition
Weatherford, halliburton, baker hughrs CY production does not have the crippling infrastructure and high senior management salaries to survive in the depressed commodity market. By staying lean CY production can avoid any debt and work from cashflow. This grant or loan will provide needed capital to buy inventory and survive until 90-120 day payment terms are realized.
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Contact Applicant
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