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Execute summary

For

Kazakhstan Oil Field Development

www.sgogco.com

Overview

Kazakhstan (Kazak), an oil producer since 1911, has the second largest oil reserves as well as the

second largest oil production among the former Soviet republics after Russia. Ever since 2014,

the completion of construction of the pipeline between China and Kazak, the potential of the

Kazak oil field become the new star of investment. We are lucky to have this great oil field

investment opportunity from Kazak authority. The reservation of it is 1.5 times of the Chinas

Daqing Oil Field. Kazak oil field we will develop can generate 10 million MT per year.

Ref: http://www.eia.gov/countries/country-data.cfm?fips=kz

1. Financial Highlights of your project

a. ROI:

27% (= 4.3B / 20B *1.3) per year, after the completion of setup

b. EBITDA:

$4B EURO per year after 1 year, after the completion of setup

CURRENT PRODUCTION: 500 MT PER DAY AT THE EXPLORATION

STATION.

Description Num of employee MT/year Income/MT Total

Sales Revenue 10,000,000 $607 $6,068,000,000

Salaries 200 -$16,000,000

Rent & Utility 200 -$16,000,000

Depreciation 200 -$1,600,000

Operation Profit (EBIT) $6,034,400,000

Interest Expense -$1,206,880,000

Earnings Before Tax (EBT) $4,827,520,000

Tax (10%) -$482,752,000

Net Income (EBITDA) $4,344,768,000

c. How much money do you need?

1st $4M USD BANK FEE paid directly to the bank, 2

ND $200M EURO for operation

cost. The investor may only invest 1st investment. The percentage of share is the same

5 times.

d. What’s in it for the investor?

cash back after the loan arrives and earn 5 time share ownership with respect to the

investment fund.

e. How fast will they get their money and profit back?

2 YEARS NEEDED TO HAVE MASS PRODUCTION, HOWEVER, FOR THE

INVESTOR IT ONLY WILL TAKE 30 DAYS AFTER BANK OF 20B EURO

WILL PAY OFF THE INVESTMENT FUND.

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2. Project Summary

DRILLING OIL IN KAZAKL AND SELL IT TO CHINA AND OTHERS.

a. What type of project? OIL DRILLING AND SELLING

b. How long to build? 1 YEARS TO START SHIPPING THE CRUDE OIL,

HOWEVER, CURRENT 500MT PER DAY AT THE EXPORATION STATION.

c. Where it is? KAZAKHSTAN (SEE ATTACHMENT)

3. Demand for your project

a. How many units are in demand? THE INVESTOR PUT 20M EURO TO GET LOAN

OF 20B EURO

b. What market forces drive customers to your project? URGENT NEEDED

PRODUCT in SE ASIA

4. Risk Assessment

a. Construction risks and how you plan to overcome them?

WE WILL OUTSOURCE THE ENGINEERING TO CNOOC, CNPC, SINOPEC,

AND CDFI

b. Competition

ALMOST NO COMPETITION, REASONS:

LOW SHIPPING COST

2ND

LARGEST RESERVATION IN THE WORLD

HIRING STATE OF THE ART ENGINEERING FACILITY

5. Strong Differentiation

a. What makes your project special?

BUYER, ENGINEERING, SHARE HOLDER WILL BE INTEGRATED

RIGHT AT THE BORDER OF CHINA

PIPELINE READY ON 2014 AND OWNED BY CNPC

b. How does this help you succeed?

REDUCE COST

USE THE STATE-OF ART TECHNOLOGIES

RIGHT AT BORDER OF CHINA. AND WILL BE SUPEIOR THAN RUSSIAN

SELLERS

6. Company

Southern Gas and Oil Group Co., Ltd. www.sgogco.com

a. How long in business?

NEW ESTABLISHED FOR SGOGCO and PARTNER WITH CHINA SHARP

A10+ years STATE-ON COMPANY

b. What type of organization?

Private Co.

c. Company short history

Southern Gas and Oil Group Co., Ltd. Is a private own registered in Hong Kong. For

the oil platform and oil drilling for Kazakhstan oil field and Natural Gas projects from

Iran and Vietnam. Company starts from sale and marking of oil and gas.

7. Management Team

Hongjin Chen/CEO: Served as CEO for China Sharp. Sell crude oil to Norinco.

Chen has worked for the Chinese Dept of Commerce for 10 years·

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Kirk/CHAIRMAN: Strategy marketing, worked with California Energy

Commission on Clean Energy, biofuel project. Worked with UCLA, UC

Berkeley, and designed software for HP, Fujitsu.

John/DIRECTOR: Lumber and oil trading

What experience does the management team have?

Buy/sell oil for 10+ years, worked for major oil company

Engineering and clean energy

Software design

Banking

b. How does this team help the project?

SOLID EXPERIENCE OIL UPSTREAM, DOWNSTREEAM

OUTSOURCING THE ENGINEERING

WELL ESTABLISHED THE CONNECTION WITH THE MAJOR BUYER

FAMILIAR WITH THE COMPETITORS

8. Growth if any planned?

M&A or IPO

Shares ownership:

Kazak government: 40%

Management owns: 15%

Investment bank owns: 15%

CNPC reserved: 5%

CNOOC reserved: 5%

Company reserved: 15%

Open: 5%