Tar sands extraction is one of the most carbon-intensive forms of oil production on Earth. UOS Energy holds net interests in approximately 575 million barrels of oil in place across its Utah lease position, with our first project covering up to 152 million barrels. Our first project tests whether non-extraction creates more value than extraction.

Baseline Scenario

Extracted

Oil is extracted, transported, refined, combusted.
Lifecycle CI = 650 kg CO2e/BOE

Project Scenario

Preserved

Oil remains underground permanently.
Substitute CI = 540 kg CO2e/BOE, 57% leakage

Net Emission Reduction = Baseline − Project (leakage-adjusted)

Lifecycle Emissions Explained

When oil is extracted, every stage produces emissions: drilling and steam generation, pipeline transport, refinery processing, and end-use combustion. The TGSM measures this full well-to-wheels chain using peer-reviewed data from the OCI+ database. For Canadian oil sands, total lifecycle intensity is 650 kg CO2e per barrel.

Market Context

Voluntary carbon credits trade at $5 to $15 per tonne depending on type, vintage, rating, and co-benefits. Novel methodologies price at a discount until rated. Geologic permanence commands a premium over nature-based credits.

First project economics (23.5M credits, two BLM leases)

First-project economics, Medium case, per UOS price sensitivity model (1 Aug 2026), on 23.5M credits net to the project. Net shown is the UOS share. The two-lease first project is the proof case. All figures subject to validation.

Market Leakage (~57%)

When one producer withholds supply, other producers partially fill the gap. The TGSM applies a 56.9% leakage rate from Prest et al. (2024), meaning only 43.1% of gross avoided emissions count toward credits. This is conservative: most academic literature puts leakage at 10-30%.

Additionality

Potential credits would only be issued if extraction would have happened without the carbon project. UOS must prove: (1) extraction is legally permitted, (2) extraction is financially viable (positive NPV), and (3) the extraction method works for this deposit. If the oil was never going to be produced, no credits are earned.

• •The extraction, processing, transportation, and refining of Carbon-Intensive Oils (CIOs) are major contributors to GHG emissions. UOS is building on groundbreaking work by Theaus Carbon.
• •These activities typically generate emissions ranging from 30 to 300 kilograms of carbon dioxide equivalent per barrel of oil equivalent (kg CO2e/boe), depending on oil density (API gravity) and extraction methods, with combustion adding another ~400 kg CO2e/boe. On average, such oils' full life-cycle emissions (wells-to-wheels) are approximately 515 kg CO2e/boe.
• •The Theaus methodology addresses the urgent need to mitigate the climate impacts of CIO extraction by promoting activities that prevent their extraction and financially incentivizing the substitution of lower-carbon alternatives through the sale of carbon credits.
• •By quantifying and accrediting emissions reductions achieved through preventing the Planned Production of these CIOs, this methodology provides a robust framework to guide Project Proponents and ensure credible, measurable climate benefits.
• •It is structured to incentivize the replacement of CIO with less Carbon-Intensive Oil and other energy sources. This equips stakeholders with a consistent approach to evaluating and implementing mitigation activities that reduce reliance on CIO sources.
• •This methodology fosters transparency and ensures alignment with international best practices, enabling the creation of high-integrity carbon credits while addressing market leakage and associated uncertainties.
• •This comprehensive framework is useful for driving the transition toward cleaner energy systems and achieving meaningful GHG emission reductions at scale.

Company estimates, subject to validation.

This Is a Binary, Early-Stage Investment

UOS Energy is not raising capital to drill, extract, refine, or produce oil. It is raising capital to test whether non-extraction can generate verified carbon credits. The investment case: (1) the oil exists, (2) extraction must be viable, (3) UOS elects not to extract, (4) avoided emissions are quantified, (5) credits are verified, issued, and sold.

Why Now

The methodology now exists. A comparable Alberta project has a completed PDD and validated verification. UOS applies that framework to a larger Utah reserve position. UOS is not inventing the category. It is applying an emerging methodology to its own asset base.

Asset Summary

Use of Proceeds

Staged Capital Plan

The raise is a $2.0M staged development loan, released in two tranches against validation milestones, to trigger issuance of carbon credits to UOS Energy.

The Hard Truth

This investment has the potential to fail. The main question is not whether the story is attractive. The main question is whether the reserves pass the additionality test.

Five Gates Before Full Commitment

Timeline

Credit Integrity

Each potential UOS carbon credit would represent approximately two barrels of oil permanently left underground. The avoided lifecycle emissions cover the full well-to-wheels chain: extraction, transport, refining, and end-use combustion.

Permanence

Oil remains stored in its original deep geologic formation. There is no biological decay risk, no fire risk, and no replanting uncertainty. The sequestration commitment is 50 years with intent to make it permanent. This provides same or better durability than removal-based credits.

Conservative Accounting

57% market leakage deduction. 10% buffer pool. 5% financial assurance allocation. Peer-reviewed emission factors. Independent PVC and VVB. Every step deducts from the gross number. What survives is credible.

Verification Stack

Buyer Use Cases

Scope 3 offsetting for companies with supply-chain emissions. Corporate net-zero commitments requiring durable, non-nature-based credits. Compliance-adjacent voluntary programs seeking high-integrity instruments.

Our Mission

UOS Energy exists to prove a single thesis: that tar sands extraction in the United States should end, and that the reserves left underground are more valuable as verified carbon assets than as produced oil. We start with significant reserves in Utah.

Team

CONTACT: wdillard@uosenergy.us