INVESTMENT ANALYSIS DOCUMENT

FOR

VENTURE OIL INVESTMENTS LIMITED

Target 20%-30% PA return Approved for SIPP SSAS QROPS Syndicated Investment – From $12,000 Ownership Rights to Investors Minimum Guaranteed Production Levels

NOTICE TO RECIPIENTS

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CONTENTS PAGE INTRODUCTION EXECUTIVE SUMMARY OIL REVENUE INVESTMENT SUMMARY OF INVESTMENT THE SYNDICATION OPTION VENTURE INTERNATIONAL SYNDICATES INVESTMENT STRUCTURE TAXATION AND THE SYNDICATE COMPANY RISK FACTORS MONEY LAUNDERING AND DATA PROTECTION CONTACT DETAILS .

leading to confusion about how. our position is the formation of investment structures & opportunities that provide the highest levels of security for our investors while optimising the returns. The Directors of Venture International Holdings Ltd all have a vast knowledge of international investments ideally positioned for the international investor. you will recognise the importance of disciplined due diligence. our investments mean they can invest in a well researched opportunity with the joint buying power of other like-minded investors. we can take maximum advantage of options secured by Venture Oil Investments Ltd on behalf of its increasing family of investor partners. Partnering with Venture is not simply a good investment it is a smart decision that will pay dividends for years to come.INTRODUCTION Welcome to our latest oil revenue investment opportunity. As our past loyal investment partners know. world financial markets have recently undergone significant changes. Via our syndicate option sharing the risk with other investors. The release of this latest Investment provides the ideal opportunity to invest in a market that even in the recent economic decline continues to flourish – the Oil Industry. As a prudent investor. As you are aware. For our investment partners. where and in what to invest. .

the returns of which are prepaid over a fixed term of 7 years (84 months). When the investment is made. (The oil is sold according to the average price of Oklahoma Sweet for the specific month).L.I. represents a unique investment opportunity. under the forward purchase contract.O. and sold to the refinery on behalf of V. THE INVESTORS CHOICE Investors are given the opportunity to purchase an exact number of barrels of oil (in allocations of 250 barrels) from the reserves of established oil wells.O.I.I.000 USD with further increments of 250 barrels.L.O. Investment in Venture Oil Investments Limited. allowing them to hedge against rising energy costs and/or start developing or add to their own personal pension fund.L.I. has its interest registered on title and an Ownership Certificate is issued identifying the specific investment made. Although the purchase of the oil in the ground conveys title to that oil.EXECUTIVE SUMMARY Venture International Holdings Limited is an International specialist consultative company offering services to offshore corporate and individual investors.. whom then receives payment at the current crude oil price per barrel on behalf of the investor.L. Venture International Holdings Limited will provide full management services to Venture Oil Investments Limited which is a new company established for this bespoke investment. Venture International also specialise in providing unique investment opportunities for our clients.I. Each investor is issued with a quarterly production payment from the proceeds of that sale.O.L.O. starts at a minimum purchase of 250 barrels of oil in the ground at a cost of $12.) has secured a forward purchase option on an exact quantity of crude oil in the ground in Oklahoma USA at a low fixed price of $48. WHAT WE OFFER Venture Oil Investments Limited (V.O.L. this investment is one such example. engages. the investor receives an allocation of shares in V. the extraction and sale of the oil is a contracted arrangement between V.L. . comparable to the level of investment made. with whom V.O.00 USD per barrel. with no maximum restrictions.I. We believe this method of investment offers our investors the opportunity to maximise the benefits of the current and future Oklahoma Sweet Oil market prices.I.O.L. further protects the interest of investors as V. At V. The contracted operator. then contracting to provide the service to extract and sell it. we believe purchasing oil in the ground at a low wholesale price. V. guarantees the 1/84th of the oil purchased shall be extracted each month. and its Operator Partners.I.

transportation and refining of the oil. with 1.000 people. These Operators are seeking capital from investors which will allow them to. extraction.OIL REVENUE INVESTMENT The Oklahoma oil energy industry contributes £23 billion to Oklahoma’s gross domestic product and employs over 60. Ten percent of the USA’s natural gas supply is held in Oklahoma. It is these operators with whom Venture Oil Investments Limited contract to provide this investment.1 km3). .750 commercial oil wells and as many as 750. In 2004. Within the US there are thousands of capped oil wells that are now being acquired by smaller independent Operators with a view to extracting the unrefined reserves.000 total wells producing 178 thousand barrels of crude oil per day. We also carry no responsibility in the purchase or maintenance of any equipment or moveable structures.662 trillion cubic feet (47. Uncap and clean existing wells Drill further into existing wells Install flow lines and storage tanks Install pumping equipment Establish and maintain flow of oil As we purchase the oil in the ground on a forward purchase contract which is fixed we are able to remove all risk associated with the exploration. Oklahoma had 83.

7% The current price of Oklahoma Sweet as of January 8th 2012 is $96.73% p.SUMMARY OF INVESTMENT OPTIONS Forward purchase contracts are executed by Venture Oil Investments Limited for the Investment Return Scenario 1 If the price remained stable at $81. the 11. additionally V. signed Contract Operator Agreement.75% Investment Return Scenario 3 If the price remained stable at $120.749.000 USD per 250 barrels.80 24.00 per barrel for the whole year.280.136. the returns would be.30 USD ROI 43.O. the returns would be. In July 2008 prices reached $147. Investment Return Scenario 2 If the price remained stable at $100. Annual Payment Received: Annual Return on Investment: $14.00 29.L.86 barrels of oil per year.00 35.9 barrels of oil per month) for 7 years.00 USD per will be topped in the current year. the Contractor would then extract the purchased quantity of oil at the rate of 142. Payments will be made via SWIFT Transfer.10% term (84 months). will issue to investors a quarterly production report . Such a price would provide a monthly payment of $1.00 per barrel for the whole year.a.O. Income from the sales is received each month into Venture Oil Investment Limited as a cash payment which in turn is paid to investors quarterly in arrears.I. Annual Payment Received: Annual Return on Investment: $11.566. (or 11.19 per barrel.00 per barrel for the whole year.9 barrels of oil extracted is rate for “Oklahoma Sweet”. Each month. the returns would be. In accordance with V.L. It is possible for a single investor buy 1000 barrels (or more) or to make the purchase through our syndicates in quantities of 250 allotments at a purchase price of $12.I. Annual Payment Received: Annual Return on Investment: $17. Production Payments Venture Oil Investments Limited will issue a regular quarterly payment to investors in US Dollars.

oil is no exception. Global oil demand. Consider the US as an example.7 mb/d in 2010 (+2. (2) Price In simple terms the higher the price the better for oil well investors. reflecting buoyant global economic growth and cold northern hemisphere weather. Add to the above the booming economies of India. The US currently imports 40% of its oil usage. so home refined oil is now becoming a priority to the large and small operators. However the main two are. Who says so – every economic analyst that’s who and they are right.1 mb/d in 2011.7 mb/d year-on-year). China. . In July 2008 prices were $147 USD per barrel. The International Energy Agency (IEA) stated that Global oil product demand for 2010 and 2011 is revised up by an average of 320 kb/d on higher-than-expected submissions. and other areas of South East Asia and the demand for oil will only increase. rises by 1.SUMMARY OF INVESTMENT FINANCIALS There are varying factors that affect the returns from oil well revenues. As economies start to improve.. the largest user of oil in the world and demand is expected to increase annually by 2% for the next 10 years. the need for oil as a major resource increases.4 mb/d to 89. (1) Production Levels Demand as ever will determine the production level of any commodity. Prices today remain stable around the $80 to $90 USD range with many experts predicting the oil prices will rise and exceed the previous highs of 2008 during 2011. assessed at 87.

Enabling smaller investment amounts to be used. Sharing the investment risk with other investors allowing a more progressive investment strategy. Allowing a group of investors to pool their funds together to acquire a quality investment that they would not normally have access to Enabling investors to spread their investment funds into several different sectors with different levels of investment risk and returns. this provides higher potential returns.THE SYNDICATION OPTION Syndication is an attractive investment concept that provides a number of significant advantages Being able to invest in opportunities the investor may not otherwise be able to afford. Offers a hassle-free method of investing .

Why a Venture International Syndicate? lived offshore for long periods of time. Venture An essential element of securing a high-quality investment is a thorough due diligence process. This expert advice is available throughout the syndication period for all facets of the syndicated investment.VENTURE INTERNATIONAL SYNDICATES Venture International Investment Syndicates require a minimum investment of $12. which provides for global access to essential support and expertise. But this costs money and is often too expensive for the individual investor. offices in Dubai. . International has representative professionals and experts within the industry and can source excellent off-market opportunities. projects The for the have international themselves Directors Venture International are “the” international investor specialists. Good diverse investments are snapped up by those within the industry before they are even released to the public. Bahamas and the UK. or invest larger sums in those syndicates that are most suited to their profile.000 US Dollars. Venture International specialises in syndicated investment investor. Venture International team members are all By sharing the due diligence costs. Venture International are then able to offer syndicate participation to its investor clients. Very often by the time “prime” investments are advertised in the public domain they have already been secured by large investment experts and discounted launch offers have been fully allocated out to these groups. Venture International provides to investors the same opportunities as the large corporate entities. They know what types of investments best suit the international investor. This syndicated investment structure was tailormade by Venture International Holdings Limited who will remain the syndicate managers for the investment made into Venture Oil Investments Limited. committed to total customer support and satisfaction. Venture International has a formalised syndicate legal structure. Investors can choose to become involved in several different syndicates using varying investment strategies. Venture International has access to Venture International has designed a syndicate investment structure that provides the best possible return on investments for its investors. investors can have access to the experts through Venture International to ensure that the investment purchased is sound.

Venture International benchmarks. Has undergone thorough independent due diligence. carefully considered and independently evaluated investment opportunities. Venture International Investment Syndicates legal documentation is produced under UK law in either the British Virgin Islands or the Seychelles. how investors are protected. Venture International provides escrow services for all investor funds and has appointed Glenmuir International Ltd as Trustees. Actual returns for oil investment are exceeding 30% per annum. investors regardless The Venture International Commitment Venture International Holdings Ltd is a global business sourcing unique. how the Syndicate operates and ultimately.Our syndicated investments are designed specifically for international investors. . Uses a bespoke for structure specifically of designed nationality. each The Venture International Guarantee Every Venture International opportunity: Has been developed by a team that is focused on a success-driven philosophy. providing them with premium investment opportunities and access to professional offshore services. Its Directors already invested in oil well royalties prior to offering out to investors. Whenever a group of Investors join together to form a Syndicate it is imperative that a formalised legal structure is available to ensure all investors know how the Syndicate is formed. syndication for a 20% + per annum minimum projected return over the investment period. how the Syndicate will conclude. Shareholders may be citizens of most countries. Venture International facilitates avenues of participation alongside our investment partners.

The syndicate Directors adhere to the investment as proposed within this Investment Analysis Document “IAD” and the Subscription & Shareholders Agreement . where and if an investment is made.VENTURE INTERNATIONAL SYNDICATES Investment Objective The objective of the syndicate is to provide the investors with high investment returns in the medium term through investment in a diversified range of investment options in the major developing markets. untried ventures. All syndicates are managed. This means when you invest in a Venture International syndicate your money is not simply passed over to another fund manager to make judgement and call on. what. All our syndicated investments are classed as low to medium in risk profile. We will never invest in pure speculative.

The main element to this investment is a real and tangible asset in the form of a forward purchase contract in oil producing wells. Investment Returns All projected investment returns in this information have been calculated after allowing for all the costs shown in this section. including administration and establishment costs. and annual reporting mechanisms of the company. Each Company is typically divided into equal shares and is structured by the Syndicate Manager so that no single shareholder can acquire a majority voting position. and extends an opportunity to syndicate investment with other known or unknown investors. Equally. an offshore limited liability company divided into equal shares. This further protects the interests of investors. further more the shareholder agreement prevents the directors from raising debt on the asset without a majority shareholding vote to do so. It is a Tax Efficient single asset Investment Company funded through syndicated investment.in this case Oil Revenue. but before any UK taxes payable by direct investors themselves. On full subscription the Syndicate Company effects the purchase contract of 1000 barrels of oil from the contracted operator outright and debt free.000 USD for 250 Barrels so the maximum amount of shareholders per syndicate is 4.000 USD. The structure has been designed to be the most efficient and profitable way to add assets into any investor’s portfolio. The Articles of Association of this Company are standard for most jurisdictions. Minimum investment is $12. Annual Costs Venture International Holdings Limited Syndicate Managers fees are fixed annually at 1% of the annual revenue. The structure is simple. Investment The initial investment required to fully subscribe to the Syndicate Company is calculated by the gross purchase price of the 1000 barrels. Shareholders The Syndicate Company is ultimately owned and managed by shareholders. Both costs are charged annually in arrears and met from the income received into the company. In the case of this investment $48. An additional annual fixed fee of £500. and are based on English Common Law. and a company resolution to buy a single real asset (1000 Barrels of oil) within certain investment guidelines. is payable from income received and covers the offshore registration costs.INVESTMENT STRUCTURE This investment is structured through Venture Oil Investments Limited a Special Purpose Vehicle (Syndicate Company). this structure allows sophisticated investors to spread risk whilst presenting the opportunity to invest through the purchase of shares in a company underwritten by the tangible asset of property . .00 GBP per syndicate.

If the asset held within the Company established for this acquisition is sold. Capital Gains Each investor is treated under UK tax rules as having direct ownership of shares in an unquoted company. It is not specific advice for any investor and any such investor requiring such advice should speak to their specialist advisors. The circumstances of the disposal of the asset will dictate the relevant capital gains tax due. Inheritance Tax The net asset value of the investors assets held within the Syndicate Company will form part of the estate for inheritance tax purposes if the investor is liable to UK inheritance tax. Each individual’s personal tax circumstances will detail the amount and type of tax due. Stamp Duty and Land Tax (SDLT) The acquisition of an interest in the Syndicate Company is outside the scope of UK stamp taxes. then the appropriate taxes are due dependent upon the individual circumstances of each investor. .TAXATION AND THE SYNDICATE COMPANY Taxation and the Syndicate Company The following summary is a guide for investors considering whether to invest in the Syndicate Company. Value Added Tax The Syndicate Company is formed in a jurisdiction to which VAT is not applicable. Income Tax The corporate structure established through which the income from the rental guarantees are received are tax efficient and mitigate annual taxable income.

Valuation of the Royalties and Oil producing Wells The sales comparison approach in valuing such an investment as this has some limited use in providing a range of values. Subjective adjustments used to lessen these difficulties are highly speculative. because it is difficult to determine the exact motivations of the buyers and sellers. However.RISK FACTORS Potential investors should carefully consider the following risk factors in relation to the investment. Operational Risk This risk represents the possibility that the operator is responsible for the extraction of the oil will under-perform and will therefore experience periods of financial distress. facilities and property rights transferred and many other variables make a precise comparison between the comparable sales. given the relative experience of the operator appointed to extract the oil and maintain the level of oil production. the level of operational risk is not considered high. Moreover. Differences in location. procedures. which individually or in aggregate could have a material effect on the investment return. and should consult their financial advisor before investing. there is no accurate way of determining whether the sales prices actually paid represent market values. Investors should be aware that the value of this investment is linked intrinsically to the oil prices and in the event that oil prices dramatically reduced this would significantly reduce the investment returns. . and this particular project difficult. or what special conditions may have influenced the sale.

better the performance of the income revenue at the time of sale. The sale of shares will be dependent on a number of factors including market liquidity and economic conditions at that time. Liquidity Though this investment is structured through the purchase of shares in a company. Returns are paid into the Syndicate Company in US Dollars. Investors should consider the current risk associated with this investment over the lifetime of the investment. then additional costs may have to be met by that investor.RISK FACTORS (CONT) Market Risk Volatility in economic growth rates. Should the UK Pound against the US Dollar be stronger the return will be greater. Should the UK Pound against the US Dollar be weaker the return will be less. as well as the political considerations associated with these jurisdictions and how they might affect these interacting exchange rates. Sale Whilst the shares in the Syndicate can be sold at any time following purchase (subject to the majority vote of its shareholders) the price that will be attained when shares are sold will be heavily dependent on a number of factors. before they can be offered for sale elsewhere. investment values and exchange rates may affect returns as a result of their impact on the performance of the investment. oil prices. There are inherent risks in any exchange rate dependent investment. most of which are detailed within this report. the asset behind the investment is oil which is of a less liquid nature than some other asset classes. If an investor wishes to sell their shares prior to the end of the investment term. the higher the sale price will be. The investment period is for the fixed term of 7 years (84 months). Shares if sold prior to the end of the investment term will be offered for 30 days to remaining syndicate shareholders. (This assumes that all other variables are constant). The Currency The deposit into the investment is made from Sterling into US Dollars. . such as share valuation and administration costs.

Death of an Investor during the Lifetime of the Investment SIPP Investor In the event of the death of a SIPP investor on whose behalf shares are held within their SIPP. “Where possible for a SIPP investor the shares could be assigned to the next of kin as in a specie payment”. the directors of the Syndicate Company will endeavour to establish an internal market for the purchase of the shares amongst current shareholders. In the unlikely event that no buyers can be found within 3 months of notification of an investor’s death. the directors of the Syndicate Company will endeavour to establish an internal market for the purchase of the shares amongst current shareholders. In both of the above cases the definition of a “fair market price” is a subjective one and the investor’s beneficiary may receive a diminished return to that anticipated. “Where possible for a direct investor the shares could be assigned to the next of kin”. the director may offer the shares on the open market or to a new investor at a fair market price. the director may offer the shares on the open market or to a new investor at a fair market price. In the unlikely event that no buyers can be found within 3 months of notification of an investor’s death. Non SIPP Investor In the event of the death of a private individual shareholder. .

RISK STATEMENT Investing in Oil and Gas Ventures has low to medium level risks. holding or disposal of the Ordinary Shares in the Company (the “Shares”). Venture International Holdings Limited has attempted to provide accuracy in the statements contained herein. accountant or other financial advisers for any advice concerning the acquisition. investment or any other matters and prospective investors are recommended to consult their own stockbroker. solicitor. . However the contents of this document (“Investment Analysis Document”) are not intended to contain and should not be regarded as containing advice relating to legal. bank manager. any person who is considering this type of investment who is in any doubt about the investment to which this Investment Analysis Document relates should consult an authorised person specialising in investments of this kind. taxation.

Rejection Any potential investor not meeting the requirements will have their application rejected as we are under a legal duty to comply with the Anti-Money Laundering Regulations. Compliance All investors should complete the application forms fully and comply with the information/ requirements stated therein. Warranty Completion of an application form warrants that all cheques forwarded by an investor will be honoured at the first presentation. . Any forms submitted must be completed in full and the payment mechanism must be adhered to strictly. we will require verification of the identity of every potential investor and any authorised intermediary acting for a prospective Investor.MONEY LAUNDERING REGULATION AND DATA PROTECTION Verification In accordance with the Money Laundering Regulations 2003. Data Protection Act Any details or information submitted during the course of the application will be retained on a database at its registered office under the provisions of the Data Protection Act 1998.