Information Memorandum: January 1, 2014
Knox Energy Inc. (“Knox”) is a natural gas and crude oil exploration and production company located in suburban
Columbus, Ohio. It specializes in natural gas production, primarily within Ohio. In addition, Knox provides
technical services on a contract basis, with regard to exploration and production, pipeline construction and
operation, land and contract services, and natural gas marketing. Knox also specializes in the custom design of
investment vehicles related to the natural gas industry.
This memorandum is designed to provide general information regarding Knox, and investments in, or related to,
the natural gas Industry, and the consulting and technical services offered by Knox.
THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF OFFERS TO BUY
ANY SECURITIES. It has been prepared solely for the purpose of providing general information to assist the
recipient in deciding whether to proceed with further investigation of Knox and the industry. Any offering made by
Knox will be made pursuant to definitive agreements negotiated between the parties, and described in
appropriate informational documents, as required by State and Federal Securities laws.
The information is provided for:
1. Industrial and Commercial Natural Gas Users
2. Institutional Investors
3. High tax bracket investors interested in tax advantaged investments
4. Users of technical services in the Natural Gas and Oil Industry.
Why Natural Gas in 2014?
1. Natural Gas is the preferred fuel for many purposes, because of its efficiency and environmental advantages.
-Compare with coal and oil
2. Supply and demand situation for natural gas is extremely favorable, creating high natural gas prices.
-Current trends indicate that it will take several years to overcome these market conditions.
3. Development well potential in Ohio, as compared with exploration, typically provides low risk,
long-lived gas supplies.
4. Federal and State Tax features create additional investment and fuel choice advantages.
Why Knox Energy Inc.?
1. Knox is a young and aggressive company, with extensive experience in the Ohio producing industry.
2. The principals of Knox have a long and accomplished track record in the industry.
1. The Ohio producing industry is dominated by “development” type drilling in the “Clinton” and “Berea”
geologic formations. This type of drilling features high completion percentages, and low, long lived
2. Ohio gas gathering and marketing system is well developed and generally available.
3. Ohio produced natural gas prices are high, when compared to other areas, because of geographic proximity
to industrial natural gas markets, and infrastructure availability.
4. Ohio also has a solid exploration alternative for those seeking higher risk, higher return, and production