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Oil & Gas Exploration Oklahoma 2015

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  • Oil & Gas ExplorationOklahoma 2015

  • Contents

    Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

    Osage 1 Project Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

    Production Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

    Oklahoma historical highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Oklahomas Oil History In depth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Oklahoma Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    Oklahoma Crude Oil Production Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

    Oklahoma Crude Oil Production Historical Data - Aug 2010 to present 2014 . . . . . . . . . . . . . . . . . . . . . 14

    Oklahoma Quick Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

    Top Economic Facts about Oklahomas Oil and Gas Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

    Oklahoma oil and gas production map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

    The Oklahoma Team Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

    Independent Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

    Geology the process of understanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

    How oil is extracted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

    Oil and Gas Payment Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

    Risk warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

    Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

    Page 3

  • Foreword

    The Osage 1 Limited has been specifically engineered in order to take advantage of this exceptional oil and gas venture situated in the heart of one of the USAs top 5 producing states, Oklahoma .

    When many people think of the oil industry, the first US state that springs to mind is usually Texas, whilst reading through the prospectus you might be surprised to learn that Tulsa, Oklahoma, was once the Oil Producing Capital of the World .

    Oklahoma has 38 federally recognised Native American Tribes, however, only the Osage tribe has a reservation; it is nearly 1 .5 million acres and occupies all of the Osage County, Oklahoma . The land was purchased during the 19th Century, and uniquely the people of the Osage Nation hold both the surface and mineral rights . When oil was discovered on their land in 1894, the Osage tribe became known as the richest people in the world. They continue to receive income from the significant amounts of crude oil and natural gas produced in the county .

    The Osage 1 Limited proposes to raise 4,900,000 via the sale of non-voting shares in order to acquire and develop the shallow drilling program on the Oklahoma HC-5A lease, the land titles are guaranteed by the US government, the site is environmentally clean and there is no need for an archaeological study .

    We are in a fortunate position to be entering the lease post geological survey, at the projects disposal are; 3D seismic geological evaluation, Core samples from the formations and even Multiple vertical science wells with image logs and dipole sonic, which in our opinion dramatically reduces the risk of uncertainty .

    A plus for the Osage 1 Limited is the temporary arrangement with the land owners to receive a proportion of the current oil production until such a time when the 5 well drilling program has been completed, this in turn means that Osage 1 limited will be receiving 30 barrels of oil per day from the current production . It is important to note that the production level has not been set to 30 barrels of oil per day and the production level can fluctuate. However, Osage 1 Limited and its subscribers will be receiving royalties from the 22nd of February 2015 .

    The information herein is relevant and specific to the Osage 1 Limited oil and gas project, data has also been collected from reputable and established industry sources referenced where applicable .

    Fortuitous occasions seldom come forward, especially when they are gilt edged . This development is that occasion, filling myself and the Oklahoma Team with an enthusiasm I hope to convey to you.

    I trust you will find the material contained within this prospectus both educational and compelling in your decision to connect with us .

    Kind regards and best wishes,

    Martin FinchManaging DirectorOsage 1 Project Ltd

    Page 5

  • OSAGE 1 Project Overview

    This is a Turnkey project situated in Pawhuska, Osage County, Oklahoma, USA.

    Operator: Oklahoma HC-5A LLC .

    Acreage: 170

    Number of Wells: 5 new wells + 1 Salt water disposal / injection well .

    Type of Wells: Vertical shallow wells .

    Production: Oil and Natural Gas .

    Secondary recovery Method: Water-Flood/Chemical .

    Depth / Formations Surface to 2400ft targeting the Skinner, Bartlesville, Burgess and Cleveland formations .

    The lease comes with; Clean Title Guaranteed by the U .S .

    Government Environmentally Clean No archeologically studies needed

    All geological analysis has already been done The Oklahoma HC-5A LLC knows exactly where the oil is via the use of: a) 3D seismic geological evaluation b) Core samples from the formations c) Multiple vertical science wells with

    image logs and dipole sonic

    Tank Batteries already onsite .

    $3 million of infrastructure already on site including some roads and access points .

    Wells already drilled on this location oldest well was drilled in 2010 .

    Oklahoma is the fifth largest producer of oil in

    the United States .

    Investors gain peace of mind by investing through a UK Limited Company.

    Low entry level of just 4,900 .

    4,900,000 shares made available at 1.00 per share.

    Purchaser of Extracted Oil: Coffeyville Resources Energy Marketing .

    Purchaser of Gas Production: Copano Energy .

    The average life expectancy of oil producing wells in the Cherokee Basin is 25 years, though records show that in some rare cases and one in particular; since 1905 . This well is producing oil from the Bartlesville Sand reservoir, which is a formation we shall be utilising .

    Team has over 50 years experience in delivery top level, commercially viable results.

    Mr. Herzfeld has drilled- reworked, and operated over the past 17 years; 648,281 Barrels of Oil and 4,072,174,000 Cubic Feet of Gas, thats more than 80 Million Dollars ($80,000,000) at todays prices .

    He has been accredited with the discovery of 10 new oil & gas fields.

    Nota Bene: In formulating this business model we have striven at all times to maintain full regulatory compliance . To this end, we are working with a payment service provider that is authorised and regulated by the Financial Conduct Authority, a solicitor regulated by the Solicitors Regulation Authority, a barrister regulated by the General Council of the Bar and a Chartered Accountant .

    Page 6

  • Production Summary

    The Cherokee Platform is a prolific producing region .

    There are multiple pay zones producing oil and gas at shallow depths: Kisner (Permian) through to the Arbuckle (Mississipian), which includes the Desmoinesian (Pennsylvanian) .

    With new methods and better exploration in Oklahoma, drilling teams are making new discoveries of fields and formations.

    Oklahoma already has developed oil fields with quality production .

    It has lots of oil and gas remaining .

    Source: http://www .ogs .ou .edu/MEETINGS/Presentations/OilGasMar2012/RogersCHEROKEE .pdf

    Page 7

  • Oklahoma historical highlights

    1897

    First commercial well in Oklahoma Territory discovered at Bartlesville .

    1901

    Oil discovered at Red Fork near Tulsa . Spindletop well near Beaumont, Texas, is the worlds biggest gusher, producing 750,000 to 1,000,000 barrels per day 50 percent as much crude as all other U .S . wells at the time . Spindletop proves oil can be found in salt domes . It also shows the advantage of using the European-developed rotary drilling rig, which had previously been used only for water wells .

    1912

    Cushing Field establishes the value of geology in finding anticlines . Royal Dutch-Shell enters United States with American Gasoline Company .

    1907

    Oklahoma becomes a State and the biggest oil-producing state at the time . Tulsa claims the title of Oil Capital of the World . Gulf and Texaco build rival pipelines from Tulsa to Gulf Coast refineries. Oklahoma establishes Corporation Commission to regulate oil production to prevent waste .

    1920

    Osage County opens with prolific Burbank discovery.

    Page 8

  • Oklahoma historical highlights

    1927

    Oklahoma City field discovered and soon becomes the nations largest .

    1989

    New well completions hit a 45-year low . President Bush signs natural gas decontrol legislation. Significant natural gas discoveries are made in the Arkoma Basin .

    2003

    Oklahoma is ranked as the Number 2 state in production of Natural Gas .

    1930

    Wild Mary Sudik well in Oklahoma City field blows out . Use of specialized muds in drilling becomes a science . Pressurized water injection used instead of gravity flow to enhance oil production .

    1990

    Oklahoma natural gas production reaches an all-time high of 2 .26 trillion cubic feet .

    Page 9

  • Oklahomas Oil History

    Oil ushered Oklahoma into the twentieth century and gave it an economic base that for decades allowed continued development . The states petroleum deposits lay within a vast reserve called the Mid-Continent Region. For twenty-two years between 1900 and 1935 Oklahoma ranked first among the Mid-Continent

    states in oil production and for nine additional years ranked second . During that period the state produced 906,012,375 barrels of oil worth approximately $5 .28 billion .

    Long before the onset of Oklahomas great oil booms, the states early inhabitants tapped into the regions many natural oil and gas seeps . Across the state, American Indians employed the black liquid that oozed from beneath the rocks and accumulated on the surface of creeks and springs as medicine for both themselves and their animals . When the eastern tribes and non-Indians arrived, word of these seeps spread . As early as 1830 Chickasaw Agent A . M . Upshaw made note of local medicine springs . His successor, A . J . Smith, reported on seeps in the Wichita Mountains . Comanche Chief Asa Toyette showed the seeps to Thomas C . Battey in the 1870s and remarked heap of medicinegood black medicine . By the 1850s visitors from neighbouring states were utilising the seeps . At Boyd Springs on Oil Creek in the Chickasaw Nation, travelers camping at the springs often drove a musket barrel into the water and then ignited the escaping natural gas for illumination .

    In 1859, Jacob Bartles, who gave his name to the oil center of Bartlesville, noticed oil seeping out of the ground southeast of Vinita when he marched through the region with the Sixth Kansas Cavalry during the Civil War .

    In 1878 the U .S . Geological Survey issued a publication detailing surface signs streams coated with oil, areas devoid of growth because of natural gas seeps, water that livestock refused to drink because it was tarry and so forth . Oil men quickly associated these signs with Oklahoma .

    In the bitterly cold winter of 1896-97 Michael Cudahy contracted with several prominent Cherokees to drill on the banks of the Caney River just north of downtown Bartlesville . Cudahy ordered his drillers to haul his Red Fork rig to Bartlesville, the trip took almost three weeks as the oilmen were forced to cut a path through the ice covering the Arkansas River so the wagons could ford the waterway, but by late January 1897 they were ready to start drilling . At 3:00 p .m . on April 15, 1897, Jennie Cass dropped an explosive charge down the wells hole and brought in the states first commercially successful oil well, the Nellie

    Johnstone Number One, at fifty barrels per day.

    In the first three decades of the twentieth century discovery after discovery was made in the Sooner

    State . In 1901 came Red Fork Field and the emergence of Tulsa as the Oil Capital of the World . The Alluwe Field and the Cherokee Shallow Sands District soon were discovered, as was Cleveland, the first

    major discovery in Oklahoma Territory when it was opened in 1904, as were the Muskogee Field and its associated pools. The following year Glenn Pool, one of the greatest oil fields ever, made Oklahoma a

    national leader in oil production and induced several major energy companies to tie the state into their major oil transmission pipelines .

    Page 10

  • In 1906 the final Osage roll of 2,229 tribal members was completed. Tribal land was allotted, but mineral

    rights were held in common, and each member was entitled to one Osage headright, or one equal share of oil and natural gas royalty . And the money poured in . On one afternoon in 1924 Walters sold $10,888,000 worth of leases, with a single 160-acre lease bringing $1,990,000 .

    The discovery of the Oklahoma City Field marked the transition from creekology to modern geology . Oklahoma had a long history of such eminent geologists as Charles N . Gould, who began his work with the Oklahoma Territorial Geological and Natural History Survey in 1900 and later headed the Oklahoma Geological Survey. Gould was a pioneer in the scientific exploration of oil-producing regions. Also

    important in the history of petroleum exploration was the work of John C . Karcher, Irving Perrine, and W . P. Haseman, who conducted the first successful reflection seismograph experiments in Oklahoma in 1921.

    Large pockets of high-pressure natural gas and huge oil production characterized Oklahoma City . One well, the Number One McBeth, had a daily flow of 101,002 barrels of oil. When gas pockets were unexpectedly

    encountered, the result was a runaway gusher that often sprayed entire neighbourhoods before the crew controlled the well . The most famous of these was the Wild Mary Sudik . For ten days between March 26 and April 4, 1930, the Wild Mary threw 20,000 barrels of oil and 200,000,000 cubic feet of natural gas into the air daily as workmen struggled to cap the well. A film of the black stuff settled on Norman, eleven

    miles to the south, and then when the wind shifted, the mist fell on Nicoma Park, eleven miles to the north .

    Oklahoma scientists also were in the forefront of the petrochemical industry . In 1927 John C . Walker of Empire Gas and Fuel Company (later Cities Service Oil Company) worked to eliminate the problem of rust in the companys natural gas pipeline system . Walker hoped to remove oxygen from the gas by promoting oxidation at high temperature, but the experiment unexpectedly created formaldehyde, methanol, acetone, acetaldehyde, higher alcohols, ketones, and aldehydes . Walker unwittingly had given birth to Oklahomas petrochemical industry. Cities Services plant at Tallant, the states first such facility, became known as the

    petrochemical patriarch of the Southwest .

    The huge demand for petroleum during World War II spurred additional drilling, and in 1941 forty- one new fields were located in Oklahoma. At the same time the production of liquefied natural gas reached new

    heights . In 1943 Ace Gutowsky located the West Edmond Field using modern seismographic equipment .

    The trend was reversed with the Arab oil embargo in the early 1970s and the deregulation of deep natural gas . The development of the Deep Anadarko Basin in south-western Oklahoma triggered a new oil-boom era when Robert A . Hefner III, began an extensive drilling program in the area around Elk City . Once again Oklahoma boomed as oilmen rushed to the state as hundreds of millions of dollars poured from the earth .

    Source: The Oklahoma Historical Society http://digital .library .okstate .edu/encyclopedia/entries/P/PE023 .html Page 11

  • Oklahoma Today

    Oklahoma is a land of low hills and flat, fertile plains. It is rich in energy resources, and crude oil and

    natural gas wells can be seen across much of the state . Oklahomas fossil fuel reserves are part of the Mid-Continent Oil Region, a vast oil and natural gas producing area extending from Texas northward, and flanked by the Mississippi River to the east and the Rocky Mountain states to the west. Many of the largest

    oil and natural gas fields in the country are found in Oklahomas Anadarko, Arkoma, and Ardmore Basins,

    and coal is found on the Cherokee Platform in eastern Oklahoma .

    Total energy consumption in Oklahoma is high relative to its population . The state is in the top one- fourth of states in per capita energy consumption . The state is best known, however, for its energy- intensive petroleum and natural gas industries . The industrial sector is the largest energy-consuming sector in Oklahoma, followed by the transportation sector .

    Many important oil and gas conservation practices and organizations trace their origins to Oklahoma .Oklahoma produces a substantial amount of crude oil; it is one of the top five oil-producing states.

    Although oil fields are predominant in the eastern half of the state, and natural gas fields are predominant

    in the west, oil wells are found throughout Oklahoma. Three of the 100 largest oil fields in the United States

    are within the state, one in south central Oklahoma, one in the Panhandle, and the third in the northeast .

    Cushing, Oklahoma is known the world over as the delivery point for futures contracts of West Texas Intermediate (WTI) oil .The city of Cushing, in central Oklahoma, is the designated delivery point for New York Mercantile Exchange (Nymex) crude oil futures contracts and is a price settlement point for West Texas Intermediate crude oil transactions traded on the Nymex. It has been called the most significant trading hub for crude

    oil in North America .

    Osage county averages 4,000,000 bbls per year equaling to 3 .5% of the overall crude oil production of Oklahoma, putting Osage in the top 5

    There are 14,500 active oil and gas wells in Osage County

    Oklahoma Crude Oil Production Chart (years/Millions of Barrels of Oil-MMBO)

    Source: http://www .eia .gov/state/print .cfm?sid=OK Page 13

  • Oklahoma Monthly Crude Oil Production Historical Data

    Aug 2010 to present 2014 (MMBO)

    Sept 30, 2014 10 .44M

    Aug 31, 2014 10 .64M

    July 31, 2014 10 .83M

    June 30, 2014 10 .19M

    May 31, 2014 11 .17M

    April 30, 2014 10 .77M

    March 31, 2014 10 .76M

    Feb 28, 2014 9 .436M

    Jan 31, 2014 10 .55M

    Dec 31, 2013 9 .733M

    Nov 30, 2013 10 .25M

    Oct 31, 2013 10 .52M

    Sept 30, 2013 10 .01M

    Aug 31, 2013 9 .945M

    July 31, 2013 9 .769M

    June 30, 2013 9 .688M

    May 31, 2013 9 .544M

    April 30, 2013 10 .36M

    March 31, 2013 8 .556M

    Feb 28, 2013 6 .494M

    Jan 31, 2013 9 .755M

    Dec 31, 2012 8 .677M

    Nov 30, 2012 8 .419M

    Oct 31, 2012 8 .672M

    Sept 30, 2012 7 .915M

    Aug 31, 2012 7 .87M

    July 31, 2012 7 .451M

    June 30, 2012 7 .449M

    May 31, 2012 7 .711M

    April 30, 2012 6 .947M

    March 31, 2012 7 .042M

    Feb 28, 2012 6 .595M

    Jan 31, 2012 7 .067M

    Dec 31, 2011 6 .823M

    Nov 30, 2011 6 .627M

    Oct 31, 2011 6 .675M

    Sept 30, 2011 6 .412M

    Aug 31, 2011 6 .515M

    July 31, 2011 6 .488M

    June 30, 2011 6 .37M

    May 31, 2011 6 .543M

    April 30, 2011 6 .178M

    March 31, 2011 6 .29M

    Feb 28, 2011 5 .183M

    Jan 31, 2011 6 .432M

    Dec 31, 2010 5 .99M

    Nov 30, 2010 5 .637M

    Oct 31, 2010 5 .812M

    Sept 30, 2010 5 .513M

    Aug 31, 2010 5 .683M

    Page 14

  • Oklahoma Quick Facts

    Excluding federal offshore areas, Oklahoma ranked fifth in crude oil production in the nation in 2013 .

    Oklahoma had five operating petroleum refineries with a combined daily capacity of over 500,000 barrels per day (3% of the total U .S . operating distillation capacity) as of January 2014 .

    Oklahoma is one of the top natural gas-producing states in the nation, accounting for 7 .1% of U .S . gross production and 8 .4% of marketed production in 2013 .

    Cushing, Oklahoma is where West Texas Intermediate crude oil futures prices are settled for the New York Mercantile Exchange (NYMEX) .

    Source: E .I .A Page 15

  • Renewed growth in Oklahomas oil and gas industry has greatly enhanced the strength and competitiveness of the state economy .The states trademark industry has roughly doubled in size the past decade . This growth has contributed to faster state employment growth, a surge in population, income gains relative to the nation, strong rural growth, and significant tax

    revenue to the state .

    The oil and gas industry continues to have an outsized influence on overall state economic activity .Oil and gas firms account for only 3.2% of all

    business establishments but hire 5% of wage and salary workers, produce 10% of state GDP, and generate 13 .5% of total earnings state-wide .

    Oil and gas served as the states key job engine the past decade .Between 2002 and 2012, Oklahoma oil and gas firms created 29,000 new wage and salary jobs

    while all other private industries combined added only 56,000 .

    Oil and gas drilling is the largest source of private capital spending in the state .Capital spending on oil and gas drilling activity totaled an estimated $11 .7 billion in 2012 . This is equivalent to the construction of nearly 67,000 new single-family homes annually valued at $175,000 each .

    Oklahoma is the only major energy state to experience a strong rebound in both crude oil and natural gas production in recent years .State oil production has nearly doubled since early 2010 to an annual rate of 119 million barrels . Natural gas production is up nearly 40% to 2 .2 trillion cubic feet annually .

    Oklahoma remains a Tier 1 energy state with an economic cycle highly influenced by activity in the oil and gas sector .The energy sector provided the state economy with a significant economic cushion during the recent

    national recession and has boosted the overall rate of state economic growth the past decade .

    Top Economic Facts about Oklahomas Oil and Gas Industry

    Page 16

  • Strong earnings gains in the oil and gas industry have propelled Oklahoma per capita income to 96% of the U .S . level .Oklahoma personal income per capita is up from 85% of the national average only a decade ago . The gains are largely traced to the performance of the oil and gas industry .

    Oil and gas activity forms the core of entrepreneurial and investment activity in Oklahoma .Nearly 40% of all income produced by proprietors and partnerships state-wide is derived from the oil and gas industry . Most of the largest and best-performing public companies based in the state are in the energy industry .

    Oklahoma is home to the second largest concentration of oil and gas activity in the U .S .Other than Texas, Oklahoma has the highest number of oil and gas wage and salary workers and proprietors and the highest total earnings from the oil and gas industry .

    Source: Economic Assessment of Oil and Gas Tax Policy in Oklahoma produced January 2014 Page 17

  • Oklahoma oil and gas production map

    Page 19

  • The Oklahoma Team Members

    The Project has a team of high level professionals with over 50 years of experience in the oil & gas industry and who have a demonstrated track record of success . They have the knowledge plus the work ethic to easily handle every phase of this Project .

    Rick Coody (President)

    Ron Herzfeld (Vice President)

    Ron Clark (Vice President)

    Wanda Sanders (Treasurer and Secretary)

    This is the team that will manage the Project and be its Operator, as managing member of Oklahoma HC-5A Team .

    Mr. Coody handles Oil Field Operations . Mr. Herzfeld is our resident Oil & Gas Geologist . Mr. Clark handles Marketing Communications, Investor Relations and IT/Internet/Website/Computer Technology . Ms. Sanders handles the finance and administrative side of the business ensuring everything is kept strictly in line with forecasting and monitoring of the total project .

    Page 21

  • MR. HERZFELD has over 30 years of experience in the oil & gas industry, which started after his service as a Captain in the United States Marine Corps . His expertise includes

    oil field activities at depths from 500 to 18,000 feet, including pumping, flowing, water-flood, and gas-lift production operations, for both oil and gas . His experience also includes gas gathering and pipeline operations, gas compression and refining operations. His work with magnetic geophysical exploration has led to the discovery of major hydrocarbon reserves in the U .S ., Canada, and Australia .

    Ron has been widely published in the Oil and Gas Journal, World Oil and proceedings from major seminars within the oil and gas industry . He received a B .A . degree from the University of Texas at Austin and is an active member of the Society of Petroleum

    Engineers (SPE); American Association of Petroleum Geologists (AAPG); Geological Society of America (GSA); New York Academy of Sciences (NYAS) . Mr . Herzfeld is the sole Owner and President of Austin Oil and Gas (AOG), an Oil and Gas Geologic, Geophysical, Engineering and Consulting Company; President and CEO of Riverdale Oil and Gas Corporation (RVDO), a publicly traded OTC Market Company President of Property Development Group, Inc . (PDG) an Oil and Gas Production Operations Company; and, President of Energy Gathering Systems (EGS) a downstream gas gathering company .

    The production from wells Mr . Herzfeld has drilled- reworked, and operated over the past 17 years is 648,281 Barrels of Oil and 4,072,174,000 Cubic Feet of Gas .

    Thats more than 80 Million Dollars ($80,000,000) at todays prices . He has been accredited of the discovery of 10 new oil & gas fields.

    MR. COODY has lived and worked in the Oklahoma/Kansas area his entire life . He has over 25 years of experience in the oil & gas industry starting with 14 years at Schlumberger .

    Much of this time was spent in the Well Service area in management or as an owner of technology companies within the oil & gas industry .

    He has extensive experience and knowledge in working- over existing, shut-in, older oil & gas wells . He knows how to put them back into operation, increase their production and value . He also has extensive experience and knowledge in drilling new wells .

    Rick has been hired as a consultant by several oil & gas companies in Oklahoma and Kansas to work on well drilling/field development programs.

    His job has been to manage and work closely with geologists, drilling contractors, and cementing and frack companies, as well as supervise all of the oil field development activities and well site construction . His responsibilities included executing each step of the drilling program through completion and putting the wells into production .

    He was involved in this capacity in over 200 oil & gas wells from 2008 to 2013 . The oil production from these wells ranged from 3 to 20 BOPD . Some were new wells and some needed reworking . Some involved a water- flood program.

    Oil & gas technology companies he has been involved with as an executive or owner, since leaving Schlumberger in 1993 include:

    PEMCO - Wildcat Well Services - Universal Wireline Equipment Cooper Rig - Serva Group - Tulsa Equipment Manufacturing .

    The Oklahoma Team Members

    Page 22

  • MR. CLARK has a B .S . degree in Aerospace Engineering from Penn State University . He transitioned from engineering to sales and marketing when he took a job with Hewlett

    Packard (HP) as a computer systems analyst and was responsible for installing computer systems and teaching computer classes .

    In two years he moved into sales and was selling HPs business and engineering computer systems . After four years with HP he went to work in a sales and marketing capacity for Computer vision and was a key contributor in pioneering and defining the CAD/CAM marketplace .

    He was directly responsible for millions of dollars in sales of CAD/CAM systems to Fortune 500

    companies, such as General Dynamics, Martin Marietta, Hughes, Rockwell International, Beckman Instruments, Solar Industries, Rohr Industries, Garrett Air Research, and Bertea .

    After eight years he left Computervision, became an entrepreneur and went on to work with start-up companies in various capacities from CEO and President to V .P . of Sales and Marketing . He wrote business plans for them, packaged them, raised millions of dollars in venture capital for them, developed all of their marketing materials, applied for patents, developed international markets/business, and much more . He has had his own marketing and sales consulting company, Business ID, for the past ten years .

    MS. SANDERS handles the Financial and Administrative side of the business . She has an M .B .A . from Golden Gate University in San Francisco, CA and a Bachelor of Science in

    Business Administration in Finance .

    She is a senior-level business leader with a successful track record producing tangible results in three diverse industries: high tech, telecommunications and medical devices/biotech . She has held executive-level positions at Hewlett Packard, Verizon Communications and Alere, Inc .

    In her spare time she has served as a member of several Philanthropy Boards administering an annual budget of $66M designing and implementing Scholar Programs for students throughout the USA .

    Recently, she was nominated and featured in the annual issue of the Minority MBA magazine listing her as one of the Next Generation of Business Leaders to watch based on her proven, outstanding Leadership Qualities in her field. She has excellent administrative, financial, project management, leadership and communication skills .

    Page 23

  • Independent Parties

    CORNISH WIRELINE SERVICES independent oil well logging company Cornish Wireline Services is the premier oil and gas wireline company founded in 1961 by Eugene Cornish . Later James and the late Harold Cornish took the reins of the company .

    Today James Cornish continues to run and grow Cornish Wireline while still making sure the customer is the number one priority .

    Cornish offer a wide array of open and closed hole services . Cornish Wireline Services mission is to safely deliver the highest quality services to clients .

    Mokat Drilling Company was established in 1982 and specialises in drilling shallow plays . The team behind Mokat has had a number of years experience working both independently and together up and down the southern half of the United States . Current studies show the company has annual revenue of $1 to 2 .5 million and employs a small team of approximately 20 oil rig men .

    COFFEYVILLE RESOURCES REFINING & MARKETING, LLC owns and operates an oil refinery in southeastern Kansas. It produces gasoline and diesel fuels, natural gas liquids, heating oil, and propane .

    The companys clients include petroleum refiners, convenience store operators, railroads, and farm co-operatives. Coffeyville Resources Refining & Marketing primarily markets its products in Oklahoma, Kansas, Missouri, Nebraska, and Iowa . It also distributes gasoline and diesel fuel to regional distribution centres .

    The company was incorporated in 2003 and is based in Coffeyville, Kansas . Coffeyville Resources Refining & Marketing, LLC operates as a subsidiary of CVR Energy, Inc . A New York Stock Exchange Member (NYSE: CVI) .

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  • CONSOLIDATED OIL WELL SERVICES LLC provides pressure pumping services for the oil and gas industry . It offers cementing, acidizing, hydraulic fracturing, and water hauling services, as

    well as frack tanks . The company was founded in 1956 and is based in Chanute, Kansas .

    GEROLD ALLEN - Independent Geologist Mr . Allen has over 40 years experience in the oil and gas industry as a professional petroleum engineer . He served 8 years as the Dean of the School of Petroleum Technology at Rodgers State University . Mr . Allen is also credited for developing and patenting new lifting technology known as Balanced Oil Recovery System (BORS Lift) designed for solution gas driven formations, which primarily fits the South American region .

    In addition, Mr . Allen has owned and operated his own independent oil and gas company that performed all well service requirements in-house .

    As a consulting Petroleum Engineer, he has worked on projects in almost all of the oil producing US States, Canada, and Middle East .

    Mr . Allen is a life-long member of the Society of Petroleum Engineers (SPE) No . 3185786, as well as a member of the Oklahoma Geological Society .

    COPANO ENERGY - We are a midstream natural gas company providing comprehensive services to natural gas producers, including natural gas gathering, processing, treating and natural gas liquids fractionation . Primary operations are in Texas, Oklahoma and Wyoming . Copano owns an interest in or operates almost 7,000 miles

    of pipelines with 2 .7 billion cubic feet per day (Bcf/d) of natural gas throughput capacity, and nine processing plants with more than 1 Bcf/d of processing capacity and 315 million cubic feet per day of treating capacity .

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  • 3D Seismic Chart of the Osage Lease

  • Geology the process of understanding

    Oklahoma is a region of complex and fascinating geology with a multitude of natural resources that originated from geologic processes acting over millions of years of Earth history . Several major sedimentary basins, set among mountain ranges and uplifts, lie beneath the States surface . Historically, classic studies of many areas in Oklahoma helped to develop fundamental scientific and engineering principles, including

    those involved in geology, petroleum exploration, and mineral production . The State has advanced-research programs in hydrology, soil science, and climatology, as well as a comprehensive network for monitoring earthquakes .

    Hundreds of millions of years ago, geologic forces within the Earths crust caused parts of Oklahoma to subside forming major sedimentary basins, while adjacent areas were folded and thrust upward forming major mountain uplifts . Most outcrops in Oklahoma are sedimentary rocks, consisting mainly of shale, sandstone, and limestone; outcrops of igneous and metamorphic rocks .

    Oklahoma has abundant mineral resources that include petroleum (crude oil and natural gas) .

    Due to forces within the Earth, parts of Oklahoma in the geologic past were alternately below or above sea level . Thick layers of sediments accumulated in shallow seas that covered large areas . The sediments were later buried and lithified (hardened to rock) into marine shales, limestones, and sandstones over

    geologic time . In areas near the ancient seas, sands and clays accumulated as alluvial and deltaic deposits that subsequently were lithified to sandstones and shales. When the areas were later elevated above the seas,

    rocks and sediments that had been deposited earlier were exposed and eroded .

    The principal mountain belts, the Ouachita, Arbuckle, and Wichita Mountains, are in the southern third of Oklahoma . These were the sites of folding, faulting, and uplifting during the Pennsylvanian Period . The mountain belts exposed a great variety of geologic structures and brought igneous rocks and thick sequences of Paleozoic sedimentary strata to the surface . The uplifts provide sites where one can observe and collect a great number of fossils, rocks, and minerals .

    Pennsylvanian rocks contain petroleum reservoirs that yield more oil and gas than any other rocks in Oklahoma

    The Pennsylvanian interests collectors for two reasons . (1) Pennsylvanian sediments contain abundant invertebrate and plant fossils in eastern and south-central Oklahoma. Plant remains include petrified wood,

    fossil leaves, and extensive coal strata . (2) Pennsylvanian mountain-building caused the uplift of deeply buried Precambrian through Mississippian rocks in the Wichita, Arbuckle, Ouachita, and Ozark Uplifts . The older, fossiliferous and mineral-bearing rocks now are exposed after the erosion of younger, overlying strata .

    The Pennsylvanian Period, subdivided into five epochs of time, includes (from oldest to youngest):

    Morrowan (Early), Atokan, Desmoinesian (Middle), Missourian, and Virgilian (Late) . Orogenies occurred in all five epochs, but each pulse of mountain building affected different areas by varying degrees.

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  • Subsurface Geology, Oil and Gas Resources of Osage County

    The area in which we shall be focusing to base our project on is situated in the centre of the County to the town of Pawhuska. All but the north-western part of the area contains oil and gas fields. These fields lie

    along the north-western margin of a large oil - and gas bearing region that occupies all of south-eastern Osage County .

    Oil or gas has been produced from 17 beds, which lie at depths ranging from about 200 to a little more than 2,900 feet . The oldest oil - or gas bearing zone is in the Ordovician system, another is in rocks adjacent to the contact of the Mississippian and Pennsylvanian series, and all the others are in the Pennsylvanian series .

    The Bartlesville sand, the Skinner Sand and the Burgess Sand-Mississippi lime zone are important oil- producing zones .

    Above - a stratigraphic illustration of sub-surface Osage County . The Desmoinesian Series is the main focus of the project .

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  • How oil is extracted

    After the initial location and planning stage, the proposed Oil well must be drilled and completed before it can produce Oil .

    A well is initially created by drilling a bore hole which can be up to 50 inches in diameter into the earth using a drill pipe and drill bit . Drilling mud, which consists of water, clay and chemicals, is pumped down through the center of the drill pipe to cool and lubricate the drill bit whilst also helping to stabilise the drill pipe and carry the rock fragment cuttings to the surface .

    Drilling continues thousands of feet down, usually between 1000 and 5000 feet, past the groundwater level . The drill pipe and bit are then removed and steel tubing, known as surface casing, is set inside the well . This stabilises the wells sides creating a protective barrier, particularly to any underground fresh water reservoirs .

    Cement is then pumped through and out of the casing, removing any remaining rock fragments and drilling mud whilst permanently securing the casing in place . This cement creates a seal to protect the fresh groundwater from contamination .

    This is then pressure tested, to ensure nothing can escape, and then repeated several times to create a thick and stable well construction . A perforating tool is then lowered into the well to create small perforations in the part of the steel casing located in the production zone. This provides a path to allow Oil to flow from

    the surrounding rock into the production casing. After this, acids or fracturing fluids may be pumped into

    the rock to stimulate the reservoir for optimum oil production .

    Usually the natural pressure of the subsurface Oil reservoir is high enough to create a constant flow, of

    Oil and Gas, to the surface. When this is the case, the top of the well is fitted with a collection of valves

    called a Christmas Tree or Production Tree which is used to regulate well pressure. Oil flows and can

    be connected to both an Oil pipeline and tanks to supply the Crude Oil to the refineries or export terminals.

    As the pressure of the underground reservoir decreases an artificial extraction method will be used.

    The most common of these is the installation of a Pump jack, also known as a Nodding Donkey . The entire process usually takes 6 to 8 weeks and well production can last for 20 to 40 years .

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  • Oil and Gas Payment Formula for monthly Dividend

    It is important to note that the below formula is indicative of pre-tax profits

    The 5 wells combined make (XX) barrels of oil per day (bopd)

    (XX bopd) x number of days in the month = (XX Total barrels of oil)

    (XX Total barrels of oil) x WTI spot price of oil -$3* = $XX Total monthly monetary value

    $XX Total monthly monetary value x 86% (Net Revenue Income) = $XX Net monthly monetary value

    $XX Net monthly monetary value x Shareholding % in the project = $XX

    $XX US Dollar to Pounds Sterling Exchange Rate = XX Dividend

    *-$3 per barrel of oil is the amount taken for the transportation costs to the Coffeyville Refinery.

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  • This document and the information within it may contain specific

    market comment and independent indicative prices; this is for information purposes only and in no way constitutes advice to buy or sell .

    The investment vehicle for this project is Osage 1 Ltd, a company registered in England & Wales under company number: 9352153 (the Company) . If you decide to proceed with a subscription in this project then you will become a shareholder in the Company .

    In order to ensure safe receipt of money, the Company has appointed GCEN as its escrow provider . GCEN is regulated by the Financial Conduct Authority and registered with HMRC . GCEN is instructed to hold your capital and only release when you, as the subscriber have been registered as a shareholder on the companys share register . If you are not registered then GCEN will return your funds to you . This will offer you a degree of security in respect of your subscription capital .

    The Company has entered into an agreement with Oklahoma HC-5A LLC, a US corporation which has the exclusive right to drill 5 new wells in the region of Osage County, Oklahoma, USA . Oklahoma HC-5A LLC is contractually obliged to pay to the Company 86% of the net income derived from the 5 new wells . As a shareholder in the Company you will be entitled to dividends in accordance with the terms of the Subscription Agreement which you will sign prior to investment .

    Your subscription funds will be utilised by Oklahoma HC-5A LLC to fund the exploration and exploitation of the above-referenced wells . It is important to note that approximately 50% of your subscription funds go to the LLC for this purpose . The other 50% or thereabouts of your subscription funds will go to cover costs associated with running the Company such as introducer and brokerage fees, accountancy fees, legal fees, escrow fees, management fees as well as IT and administration . The LLC will derive its funding for this project exclusively from Osage 1 Ltd . The reason why we need to operate through the LLC rather than undertaking the project ourselves is due to local, state and national laws .

    The Company will utilise the services of third party promoters who have a strict code of conduct to which they must adhere . The code of conduct is available to subscribers upon request .

    The Osage 1 Project offers various services to Sophisticated, High net worth, Professional and Corporate clients only and do not participate in any transactions made by retail clients .

    The value of your investments and the income from them can go down as well as up and is not guaranteed at any time . You may get back less than you originally invested and in extreme circumstances, lose all of the value of your subscription .

    Information on past performance is not an indicator for future performance .

    The information contained in this brochure is not intended to constitute and should not be construed as investment advice .

    The income from the opportunity is dependent on the market for oil and natural gas and this is subject to change . While the operation of oil and gas wells is generally subject to insurance this may not cover all liabilities which may be encountered .

    The market for this opportunity is illiquid and you may have difficulty in selling the holding at the price you wish to achieve

    and in some cases it may be difficult to sell them at any price.

    There is no guarantee that you will be able to sell your holding . The purchase should be regarded as high risk and speculative in its nature. It can be difficult to assess what the actual market value is

    for the holding and you may not get back the full amount originally subscribed and in some cases you may lose the entire amount paid .

    You should not enter into this agreement unless you understand the nature of the transactions envisaged herein and the extent of your exposure to risk .

    You should be satisfied that the transactions are suitable for you

    given your financial circumstances and investment objections.

    The rules and regulations governing such opportunities are subject to change and such changes may have a detrimental impact on the price of the agreement and/or the potential market .

    Past performance is not an indication of future performance . No warranties are given as to the future value of the holding . The price of the holding can fall as well as rise .

    With any opportunity in the Oil and Gas sector either corporate or individual clients should seek the appropriate advice prior to agreeing terms .

    None of the companies involved in the project are authorised or regulated by the Financial Conduct Authority (the FCA) . The services are not governed by the FCAs rules and you will not benefit from any protections which may be available under

    the FCAs rules . You will not be covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service .

    Risk warning

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  • Disclaimer:

    The communication to which this investment relates is exempt from the general restriction in Section 21 of the Financial Services and Markets Act 2000 on making financial promotions to members of the public where the promoter is not an authorised and regulated

    person for the purposes of the Financial Services and Markets Act 2000 on the basis that it is made to and only to certain groups who are exempt within the meaning of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 . These include sophisticated investors self-certified sophisticated investors, high net worth companies, certified high net worth individuals and certain

    investment professionals .

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