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8/3/2019 Venture Oil Brochure 2

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

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NOTICE TO RECIPIENTS

This Information is provided to inform Authorised “High net worth companies”, unincorporated
Financial Advisors about a specic alternative associations, partnerships or trustees of high value
investment, its structure and the detail surrounding trusts’ within the meaning of article 22 of the CIS
the investment. Exemption Order;

This information is not produced or intended for “Sophisticated investors” within the meaning of 
members of the public or general circulation. Only article 23 of the CIS Exemptions order as amended
authorised and regulated advisors are able to provide by the Financial Services and Markets Act 2000
investment advice to their clients whom they know (Financial Promotion and Promotion of Collective
to be certied sophisticated investors. Investment Schemes) (Miscellaneous Amendments)
Order 2005.
This document details an alternative investment
through the purchase of shares in an unquoted A “sophisticated investor” for the purpose of article
company. 23 of the CIS Exemptions Order as amended by the
Financial Services and Markets Act 2000 (Financial
Prospective investors must rely on their own Promotion and Promotion of Collective Investment
examination of the legal, taxation, nancial and other Schemes) (Miscellaneous Amendments) Order
consequences of any contributions made in this 2005 is someone:
investment including the risk involved. Prospective
investors should not treat the contents of this Who has a current certicate in writing or other
information as advice relating to legal, taxation or legible form signed by an authorised person (other
other matters and, if in any doubt about the proposal than the authorised person by whom the Information
discussed in this information, its suitability, or what Memorandum is communicated to the eect that
action should be taken, should consult a person he is suciently knowledgeable to understand the
authorised and regulated by the FSA under The risks associated with participating in unregulated
Financial Services and Markets Act 2000 (“FSMA”) schemes (other than the authorised person by whom
and qualied to advise on alternative investments of  the Information Memorandum is communicated);
this nature.
and;
Accordingly, where this information is communicated
by any person who is “authorised “under FSMA to Who has signed within the period twelve
any other person, it is to be so communicated only months before the day on which the Information
to (and directed only at) persons to whom such Memorandum is communicated, a statement in
communication may lawfully be made (“Relevant the term prescribed by article 23(1)(b) of the CIS
Party and “Relevant Party” shall be construed Exemptions Order as amended by the Financial
accordingly), including (but not limited) to: Services and Markets Act 2000 (Financial Promotion
and Promotion of Collective Investment Schemes)
“Investment professionals” who have professional (Miscellaneous Amendments) Order 2005.
experience in participating in unregulated collective
investment schemes within the meaning of article 14 This information can only be provided to persons
of the FSMA (Promotion of Collective Investment where the nancial promotion is exempt from the
Schemes) (Exemptions) Order 2001, as amended nancial promotions restrictions.
(the “CIS Exemptions Order”);

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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

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INTRODUCTION

Welcome to our latest oil revenue investment


opportunity. As you are aware, world nancial
markets have recently undergone signicant
changes, leading to confusion about how,
where and in what to invest. The release of this
latest Investment provides the ideal opportunity
to invest in a market that even in the recent
economic decline continues to ourish – the Oil
Industry.

As a prudent investor, you will recognise the


importance of disciplined due diligence. The
Directors of Venture International Holdings
Ltd all have a vast knowledge of international
investments ideally positioned for the
international investor.

As our past loyal investment partners know,


our position is the formation of investment
structures & opportunities that provide the
highest levels of security for our investors
while optimising the returns.

For our investment partners, our investments


mean they can invest in a well researched
opportunity with the joint buying power of 
other like-minded investors.

Via our syndicate option sharing the risk


with other 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.

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EXECUTIVE SUMMARY

Venture International Holdings Limited is an At V.O.I.L., we believe purchasing oil in


International specialist consultative company the ground at a low wholesale price, then
oering services to oshore corporate and contracting to provide the service to extract
individual investors. and sell it, represents a unique investment
opportunity.
Venture International also specialise in providing
unique investment opportunities for our clients, We believe this method of investment oers
this investment is one such example. our investors the opportunity to maximise the
benets of the current and future Oklahoma
Venture International Holdings Limited will Sweet Oil market prices, allowing them to
provide full management services to Venture Oil hedge against rising energy costs and/or start
Investments Limited which is a new company developing or add to their own personal pension
established for this bespoke investment. fund.

WHAT WE OFFER THE INVESTORS CHOICE

Venture Oil Investments Limited (V.O.I.L.) Investors are given the opportunity to purchase

has secured a forward purchase option on an exact number of barrels of oil (in allocations
an exact quantity of crude oil in the ground of 250 barrels) from the reserves of established
in Oklahoma USA at a low xed price of  oil wells. When the investment is made, the
$48.00 USD per barrel, the returns of  investor receives an allocation of shares in
which are prepaid over a xed term of 7 V.O.I.L. comparable to the level of investment
years (84 months). made.

The contracted operator, with whom V.O.I.L. further protects the interest of 
V.O.I.L. engages, guarantees the 1/84th of  investors as V.O.I.L. has its interest registered
the oil purchased shall be extracted each on title and an Ownership Certicate is issued
month, and sold to the renery on behalf of  identifying the specic investment made, under
V.O.I.L. whom then receives payment at the the forward purchase contract.
current crude oil price per barrel on behalf 
of the investor. Investment in Venture Oil Investments Limited,
starts at a minimum purchase of 250 barrels
Each investor is issued with a quarterly of oil in the ground at a cost of $12,000 USD
production payment from the proceeds of  with further increments of 250 barrels, with no
that sale. (The oil is sold according to the maximum restrictions. Although the purchase
average price of Oklahoma Sweet for the of the oil in the ground conveys title to that oil,
specic month). the extraction and sale of the oil is a contracted
arrangement between V.O.I.L. and its Operator
Partners.

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OIL REVENUE INVESTMENT

The Oklahoma oil energy industry contributes


£23 billion to Oklahoma’s gross domestic
product and employs over 60,000 people.
In 2004, Oklahoma had 83,750 commercial
oil wells and as many as 750,000 total wells
producing 178 thousand barrels of crude oil
per day. Ten percent of the USA’s natural gas
supply is held in Oklahoma, with 1.662 trillion
cubic feet (47.1 km3).

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 unrened reserves. It is these operators
with whom Venture Oil Investments Limited
contract to provide this investment. These
Operators are seeking capital from investors

which will allow them to;

Uncap and clean existing wells


Drill further into existing wells
Install ow lines and storage tanks
Install pumping equipment
Establish and maintain ow of oil

As we purchase the oil in the ground on a forward


purchase contract which is xed we are able to
remove all risk associated with the exploration,
extraction, transportation and rening of 
the oil. We also carry no responsibility in the
purchase or maintenance of any equipment or
moveable structures.

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SUMMARY OF INVESTMENT

OPTIONS Investment Return Scenario 1


If the price remained stable at $81.00 per barrel
Forward purchase contracts are executed for the whole year, the returns would be;
by Venture Oil Investments Limited for the
Annual Payment Received: $11,566.80
Annual Return on Investment: 24.10%

term (84 months). It is possible for a single


investor buy 1000 barrels (or more) or to Investment Return Scenario 2
make the purchase through our syndicates in If the price remained stable at $100.00 per
quantities of 250 allotments at a purchase price barrel for the whole year, the returns would be;
of $12,000 USD per 250 barrels. Annual Payment Received: $14,280.00
Annual Return on Investment: 29.75%
In accordance with V.O.I.L. signed Contract
Operator Agreement, the Contractor would
Investment Return Scenario 3
then extract the purchased quantity of oil at the
If the price remained stable at $120.00 per
rate of 142.86 barrels of oil per year, (or 11.9
barrel for the whole year, the returns would be;
barrels of oil per month) for 7 years.
Annual Payment Received: $17,136.00
Each month, the 11.9 barrels of oil extracted is Annual Return on Investment: 35.7%

rate for “Oklahoma Sweet”. Income from the   The current price of Oklahoma Sweet as of 
sales is received each month into Venture Oil January 8th 2012 is $96.19 per barrel.
Investment Limited as a cash payment which in
turn is paid to investors quarterly in arrears. In July 2008 prices reached $147.00 USD per

will be topped in the current year. Such a price

would provide a monthly payment of $1,749.30


USD ROI 43.73% p.a.

Production Payments
Venture Oil Investments Limited will issue a
regular quarterly payment to investors in US
Dollars. Payments will be made via SWIFT
  Transfer; additionally V.O.I.L. will issue to
investors a quarterly production report

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SUMMARY OF INVESTMENT

FINANCIALS

There are varying factors that aect the


returns from oil well revenues. However
the main two are;

(1) Production Levels


Demand as ever will determine the production
level of any commodity, oil is no exception. As
economies start to improve, the need for oil as a
major resource increases. Who says so – every
economic analyst that’s who and they are right.
Consider the US as an example, the largest user
of oil in the world and demand is expected to
increase annually by 2% for the next 10 years.
The US currently imports 40% of its oil usage,
so home rened oil is now becoming a priority

to the large and small operators. Add to the


above the booming economies of India, China,
and other areas of South East Asia and the
demand for oil will only increase.

(2) Price
In simple terms the higher the price the better
for oil well investors. In July 2008 prices were
$147 USD per barrel. 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. 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,
reecting buoyant global economic growth and
cold northern hemisphere weather. Global oil
demand, assessed at 87.7 mb/d in 2010 (+2.7
mb/d year-on-year), rises by 1.4 mb/d to 89.1
mb/d in 2011..

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THE SYNDICATION OPTION

Syndication is an attractive investment concept


that provides a number of signicant advantages

Being able to invest in opportunities the


investor may not otherwise be able to
aord.

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
dierent sectors with dierent levels
of investment risk and returns.
 
Sharing the investment risk
with other investors allowing a more
progressive investment strategy, this
provides higher potential returns.
 
Enabling smaller investment amounts
to be used.
 
Oers a hassle-free method of investing

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VENTURE INTERNATIONAL
SYNDICATES

Venture International Investment Syndicates Why a Venture International Syndicate?


require a minimum investment of $12,000
US Dollars. Investors can choose to become Venture International are “the” international
involved in several dierent syndicates using investor specialists.
varying investment strategies, or invest larger
sums in those syndicates that are most suited Venture International specialises in syndicated
to their prole. investment projects for the international
investor. The Directors have themselves
Very often by the time “prime” investments lived oshore for long periods of time. They
are advertised in the public domain they have know what types of investments best suit the
already been secured by large investment international investor.
experts and discounted launch oers have been
fully allocated out to these groups. Good diverse Venture International has designed a syndicate
investments are snapped up by those within investment structure that provides the best
the industry before they are even released to possible return on investments for its investors.
the public. Venture International provides to This syndicated investment structure was tailor-
investors the same opportunities as the large made by Venture International Holdings Limited

corporate entities. who will remain the syndicate managers for the
investment made into Venture Oil Investments
Venture International has access to Limited.
professionals and experts within the industry and
can source excellent o-market opportunities. Venture International has a formalised syndicate
Venture International are then able to oer legal structure.
syndicate participation to its investor clients.
Venture International has representative
An essential element of securing a high-quality oces in Dubai, Bahamas and the UK, which
investment is a thorough due diligence process. provides for global access to essential support
But this costs money and is often too expensive and expertise.
for the individual investor.
Venture International team members are all
By sharing the due diligence costs, investors committed to total customer support and
can have access to the experts through Venture satisfaction.
International to ensure that the investment
purchased is sound.

This expert advice is available throughout


the syndication period for all facets of the
syndicated investment.

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Our syndicated investments are designed The Venture International Guarantee


specically for international investors.
Shareholders may be citizens of most countries. Every Venture International opportunity:

Whenever a group of Investors join together


Has been developed by a team that is focused
to form a Syndicate it is imperative that a
formalised legal structure is available to ensure on a success-driven philosophy.
all investors know how the Syndicate is formed,
how investors are protected, how the Syndicate
operates and ultimately, how the Syndicate will Has undergone thorough independent due
diligence. Its Directors already invested
conclude.
in oil well royalties prior to oering out to
Venture International Investment Syndicates investors.
legal documentation is produced under UK
law in either the British Virgin Islands or the
Seychelles. Uses a bespoke structure specically
designed for investors regardless of 

Venture International provides escrow services nationality.


for all investor funds and has appointed
Glenmuir International Ltd as Trustees. The Venture International Commitment

Venture International benchmarks, each


Venture International Holdings Ltd is a
syndication for a 20% + per annum minimum
projected return over the investment period. global business sourcing unique, carefully
considered and independently evaluated
Actual returns for oil investment are exceeding
investment opportunities.
30% per annum.

Venture International facilitates avenues


of participation alongside our investment
partners, providing them with premium
investment opportunities and access to
professional oshore services.

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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
diversied range of investment options in the
major developing markets.

All our syndicated investments are classed as


low to medium in risk prole. We will never
invest in pure speculative, 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, where and if an investment is
made. The syndicate Directors adhere to the
investment as proposed within this Investment
Analysis Document “IAD” and the Subscription

& Shareholders Agreement

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INVESTMENT STRUCTURE

This investment is structured through Venture Shareholders 


Oil Investments Limited a Special Purpose
Vehicle (Syndicate Company). It is a Tax The Syndicate Company is ultimately owned
Ecient single asset Investment Company and managed by shareholders. Each Company
funded through syndicated investment. is typically divided into equal shares and is
structured by the Syndicate Manager so that no
The structure has been designed to be the single shareholder can acquire a majority voting
most ecient and protable way to add assets position.
into any investor’s portfolio, and extends an
opportunity to syndicate investment with other Investment 
known or unknown investors. Equally, this
structure allows sophisticated investors to The initial investment required to fully subscribe
spread risk whilst presenting the opportunity to the Syndicate Company is calculated by
to invest through the purchase of shares in a the gross purchase price of the 1000 barrels,
company underwritten by the tangible asset of  including administration and establishment
property - in this case Oil Revenue. costs. In the case of this investment $48,000
USD. Minimum investment is $12,000 USD

The structure is simple, an oshore limited for 250 Barrels so the maximum amount of 
liability company divided into equal shares, and shareholders per syndicate is 4.
a company resolution to buy a single real asset
(1000 Barrels of oil) within certain investment Annual Costs
guidelines. The Articles of Association of this
Company are standard for most jurisdictions, Venture International Holdings Limited
and are based on English Common Law. Syndicate Managers fees are xed annually at
1% of the annual revenue. An additional annual
On full subscription the Syndicate Company xed fee of £500.00 GBP per syndicate, is
eects the purchase contract of 1000 barrels payable from income received and covers
of oil from the contracted operator outright the oshore registration costs, and annual
and debt free, further more the shareholder reporting mechanisms of the company. Both
agreement prevents the directors from costs are charged annually in arrears and met
raising debt on the asset without a majority from the income received into the company.
shareholding vote to do so. This further protects  
the interests of investors. Investment Returns

The main element to this investment is a real All projected investment returns in this
and tangible asset in the form of a forward information have been calculated after allowing
purchase contract in oil producing wells. for all the costs shown in this section, but
before any UK taxes payable by direct investors
themselves.

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TAXATION AND THE


SYNDICATE COMPANY

Taxation and the Syndicate Company Inheritance Tax

The following summary is a guide for investors The net asset value of the investors assets held
considering whether to invest in the Syndicate within the Syndicate Company will form part of 
Company. It is not specic advice for any the estate for inheritance tax purposes if the
investor and any such investor requiring such investor is liable to UK inheritance tax.
advice should speak to their specialist advisors.

Stamp Duty and Land Tax (SDLT)


Income Tax
The acquisition of an interest in the Syndicate
The corporate structure established through Company is outside the scope of UK stamp
which the income from the rental guarantees taxes.
are received are tax ecient and mitigate annual
taxable income. Each individual’s personal tax
circumstances will detail the amount and type Value Added Tax
of tax due.

The Syndicate Company is formed in a


jurisdiction to which VAT is not applicable.
Capital Gains

Each investor is treated under UK tax rules as


having direct ownership of shares in an unquoted
company. If the asset held within the Company
established for this acquisition is sold, then the
appropriate taxes are due dependent upon the
individual circumstances of each investor. The
circumstances of the disposal of the asset will
dictate the relevant capital gains tax due.

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RISK FACTORS

Potential investors should carefully consider Operational Risk


the following risk factors in relation to the
investment, which individually or in aggregate This risk represents the possibility that the
could have a material eect on the investment operator is responsible for the extraction of 
return, and should consult their nancial the oil will under-perform and will therefore
advisor before investing. Investors should be experience periods of nancial distress.
aware that the value of this investment is linked However, given the relative experience of 
intrinsically to the oil prices and in the event the operator appointed to extract the oil and
that oil prices dramatically reduced this would maintain the level of oil production, the level of 
signicantly reduce the investment returns. operational risk is not considered high.

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. Dierences in


location, procedures, facilities and property
rights transferred and many other variables make
a precise comparison between the comparable
sales, and this particular project dicult.
Subjective adjustments used to lessen these
diculties are highly speculative. Moreover,
there is no accurate way of determining whether
the sales prices actually paid represent market
values, because it is dicult to determine the
exact motivations of the buyers and sellers, or
what special conditions may have inuenced
the sale.

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RISK FACTORS (CONT)

Market Risk Sale

Volatility in economic growth rates, oil prices, Whilst the shares in the Syndicate can be sold
investment values and exchange rates may at any time following purchase (subject to the
aect returns as a result of their impact on the majority vote of its shareholders) the price that
performance of the investment. will be attained when shares are sold will be
heavily dependent on a number of factors, most
of which are detailed within this report. The
Currency better the performance of the income revenue
at the time of sale, the higher the sale price will
The deposit into the investment is made from be. The sale of shares will be dependent on a
Sterling into US Dollars. Returns are paid into number of factors including market liquidity
the Syndicate Company in US Dollars. There are and economic conditions at that time.
inherent risks in any exchange rate dependent
investment. Should the UK Pound against the
US Dollar be stronger the return will be greater. Liquidity
Should the UK Pound against the US Dollar be

weaker the return will be less. (This assumes Though this investment is structured through
that all other variables are constant). the purchase of shares in a company, the asset
behind the investment is oil which is of a less
Investors should consider the current risk liquid nature than some other asset classes.
associated with this investment over the The investment period is for the xed term of 7
lifetime of the investment, as well as the years (84 months).
political considerations associated with these
jurisdictions and how they might aect these If an investor wishes to sell their shares prior to
interacting exchange rates. the end of the investment term, then additional
costs may have to be met by that investor, such
as share valuation and administration costs.

Shares if sold prior to the end of the investment


term will be oered for 30 days to remaining
syndicate shareholders, before they can be
oered for sale elsewhere.

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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, 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 
notication of an investor’s death, the director
may oer the shares on the open market or to a
new investor at a fair market price.

“Where possible for a SIPP investor the shares


could be assigned to the next of kin as in a

specie payment”.

Non SIPP Investor


In the event of the death of a private individual
shareholder, 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 
notication of an investor’s death, the director
may oer the shares on the open market or to a
new investor at a fair market price.

In both of the above cases the denition of a


“fair market price” is a subjective one and the
investor’s beneciary may receive a diminished
return to that anticipated. “Where possible for
a direct investor the shares could be assigned
to the next of kin”.

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RISK STATEMENT

Investing in Oil and Gas Ventures has low


to medium level risks, 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.

Venture International Holdings Limited has


attempted to provide accuracy in the statements
contained herein. 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,
taxation, investment or any other matters and
prospective investors are recommended to
consult their own stockbroker, bank manager,

solicitor, accountant or other nancial advisers


for any advice concerning the acquisition,
holding or disposal of the Ordinary Shares in
the Company (the “Shares”).

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MONEY LAUNDERING REGULATION


AND DATA PROTECTION

Verication
In accordance with the Money Laundering
Regulations 2003, we will require verication
of the identity of every potential investor
and any authorised intermediary acting for a
prospective Investor. Any forms submitted
must be completed in full and the payment
mechanism must be adhered to strictly.

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.

Data Protection Act


Any details or information submitted during
the course of the application will be retained
on a database at its registered oce under the
provisions of the Data Protection Act 1998.

Warranty
Completion of an application form warrants
that all cheques forwarded by an investor will
be honoured at the rst presentation.

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