Venture Oil Brochure 2

8/3/2019 Venture Oil Brochure 2

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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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This Information is provided to inform Authorised

Financial Advisors about a specic alternative

investment, its structure and the detail surrounding

the investment.

This information is not produced or intended for

members of the public or general circulation. Only

authorised and regulated advisors are able to provide

investment advice to their clients whom they know

to be certied sophisticated investors.

This document details an alternative investment

through the purchase of shares in an unquoted

company.

Prospective investors must rely on their own

examination of the legal, taxation, nancial and other

consequences of any contributions made in this

investment including the risk involved. Prospective

investors should not treat the contents of this

information as advice relating to legal, taxation or

other matters and, if in any doubt about the proposal

discussed in this information, its suitability, or what

action should be taken, should consult a person

authorised and regulated by the FSA under The

Financial Services and Markets Act 2000 (FSMA)

and qualied to advise on alternative investments of

this nature.

Accordingly, where this information is communicated

by any person who is authorised under FSMA to

any other person, it is to be so communicated only

to (and directed only at) persons to whom such

communication may lawfully be made (Relevant

Party and Relevant Party shall be construed

accordingly), including (but not limited) to:

Investment professionals who have professional

experience in participating in unregulated collective

investment schemes within the meaning of article 14

of the FSMA (Promotion of Collective Investment

Schemes) (Exemptions) Order 2001, as amended

(the CIS Exemptions Order);

High net worth companies, unincorporated

associations, partnerships or trustees of high value

trusts within the meaning of article 22 of the CIS

Exemption Order;

Sophisticated investors within the meaning of

article 23 of the CIS Exemptions order as amended

by the Financial Services and Markets Act 2000

(Financial Promotion and Promotion of Collective

Investment Schemes) (Miscellaneous Amendments)

Order 2005.

A sophisticated investor for the purpose of article

23 of the CIS Exemptions Order as amended by the

Financial Services and Markets Act 2000 (Financial

Promotion and Promotion of Collective Investment

Schemes) (Miscellaneous Amendments) Order

2005 is someone:

Who has a current certicate in writing or other

legible form signed by an authorised person (other

than the authorised person by whom the Information

Memorandum is communicated to the eect that

he is suciently knowledgeable to understand the

risks associated with participating in unregulated

schemes (other than the authorised person by whom

the Information Memorandum is communicated);

and;

Who has signed within the period twelve

months before the day on which the Information

Memorandum is communicated, a statement in

the term prescribed by article 23(1)(b) of the CIS

Exemptions Order as amended by the Financial

Services and Markets Act 2000 (Financial Promotion

and Promotion of Collective Investment Schemes)

(Miscellaneous Amendments) Order 2005.

This information can only be provided to persons

where the nancial promotion is exempt from the

nancial promotions restrictions.

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


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Welcome to our latest oil revenue investment

opportunity. As you are aware, world nancial

markets have recently undergone signicant

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.

INTRODUCTION


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At V.O.I.L., we believe purchasing oil in

the ground at a low wholesale price, then

contracting to provide the service to extract

and sell it, represents a unique investment

opportunity.

We believe this method of investment oers

our investors the opportunity to maximise the

benets of the current and future Oklahoma

Sweet Oil market prices, allowing them to

hedge against rising energy costs and/or start

developing or add to their own personal pension

fund.

THE INVESTORS CHOICE

Investors are given the opportunity to purchase

an exact number of barrels of oil (in allocationsof 250 barrels) from the reserves of established

oil wells. When the investment is made, the

investor receives an allocation of shares in

V.O.I.L. comparable to the level of investment

made.

V.O.I.L. further protects the interest of

investors as V.O.I.L. has its interest registered

on title and an Ownership Certicate is issuedidentifying the specic investment made, under

the forward purchase contract.

Investment in Venture Oil Investments Limited,

starts at a minimum purchase of 250 barrels

of oil in the ground at a cost of $12,000 USD

with further increments of 250 barrels, with no

maximum restrictions. Although the purchase

of the oil in the ground conveys title to that oil,

the extraction and sale of the oil is a contracted

arrangement between V.O.I.L. and its Operator

Partners.

Venture International Holdings Limited is an

International specialist consultative company

oering services to oshore corporate and

individual investors.

Venture International also specialise in providing

unique investment opportunities for our clients,

this investment is one such example.

Venture International Holdings Limited will

provide full management services to Venture Oil

Investments Limited which is a new company

established for this bespoke investment.

WHAT WE OFFER

Venture Oil Investments Limited (V.O.I.L.)

has secured a forward purchase option onan exact quantity of crude oil in the ground

in Oklahoma USA at a low xed price of

$48.00 USD per barrel, the returns of

which are prepaid over a xed term of 7

years (84 months).

The contracted operator, with whom

V.O.I.L. engages, guarantees the 1/84th of

the oil purchased shall be extracted eachmonth, and sold to the renery on behalf of

V.O.I.L. whom then receives payment at the

current crude oil price per barrel on behalf

of the investor.

Each investor is issued with a quarterly

production payment from the proceeds of

that sale. (The oil is sold according to the

average price of Oklahoma Sweet for the

specic month).

EXECUTIVE SUMMARY


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The Oklahoma oil energy industry contributes

23 billion to Oklahomas 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 USAs 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 unrened 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 rening of

the oil. We also carry no responsibility in the

purchase or maintenance of any equipment or

moveable structures.

OIL REVENUE INVESTMENT


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OPTIONS

Forward purchase contracts are executed

by Venture Oil Investments Limited for the

term (84 months). 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 $12,000 USD per 250 barrels.

In accordance with V.O.I.L. signed Contract

Operator Agreement, the Contractor would

then extract the purchased quantity of oil at the

rate of 142.86 barrels of oil per year, (or 11.9

barrels of oil per month) for 7 years.

Each month, the 11.9 barrels of oil extracted is

rate for Oklahoma Sweet. 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.

Investment Return Scenario 1

If the price remained stable at $81.00 per barrel

for the whole year, the returns would be;

Annual Payment Received: $11,566.80

Annual Return on Investment: 24.10%


If the price remained stable at $100.00 per

barrel for the whole year, the returns would be;




If the price remained stable at $120.00 per

barrel for the whole year, the returns would be;



The current price of Oklahoma Sweet as of

January 8th 2012 is $96.19 per barrel.

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 $1,749.30USD 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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FINANCIALS

There are varying factors that aect 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 thats 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 rened oil is now becoming a priority

to the large and small operators. Add to theabove 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 withmany 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,

reecting 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 signicant advantages

Being able to invest in opportunities the

investor may not otherwise be able to

aord.

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

dierent sectors with dierent 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.

Oers a hassle-free method of investing


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Venture International Investment Syndicates

require a minimum investment of $12,000

US Dollars. Investors can choose to become

involved in several dierent syndicates using

varying investment strategies, or invest larger

sums in those syndicates that are most suited

to their prole.

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 oers have been

fully allocated out to these groups. Good diverse

investments are snapped up by those within

the industry before they are even released to

the public. Venture International provides to

investors the same opportunities as the large

corporate entities.

Venture International has access to

professionals and experts within the industry and

can source excellent o-market opportunities.

Venture International are then able to oer

syndicate participation to its investor clients.

An essential element of securing a high-quality

investment is a thorough due diligence process.But this costs money and is often too expensive

for the individual investor.

By sharing the due diligence costs, investors

can have access to the experts through Venture

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.

Why a Venture International Syndicate?

Venture International are the international

investor specialists.

Venture International specialises in syndicated

investment projects for the international

investor. The Directors have themselves

lived oshore for long periods of time. They

know what types of investments best suit the

international investor.

Venture International has designed a syndicate

investment structure that provides the best

possible return on investments for its investors.

This syndicated investment structure was tailor-

made by Venture International Holdings Limited

who will remain the syndicate managers for theinvestment made into Venture Oil Investments

Limited.

Venture International has a formalised syndicate

legal structure.

Venture International has representative

oces in Dubai, Bahamas and the UK, which

provides for global access to essential supportand expertise.

Venture International team members are all

committed to total customer support and

satisfaction.

VENTURE INTERNATIONALSYNDICATES


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Our syndicated investments are designed

specically for international investors.

Shareholders may be citizens of most countries.

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,

how investors are protected, how the Syndicate

operates and ultimately, how the Syndicate will

conclude.

Venture International Investment Syndicates

legal documentation is produced under UK

law in either the British Virgin Islands or the

Seychelles.

Venture International provides escrow servicesfor all investor funds and has appointed

Glenmuir International Ltd as Trustees.

Venture International benchmarks, each

syndication for a 20% + per annum minimum

projected return over the investment period.

Actual returns for oil investment are exceeding

30% per annum.

The Venture International Guarantee

Every Venture International opportunity:

Has been developed by a team that is focused

on a success-driven philosophy.

Has undergone thorough independent duediligence. Its Directors already invested

in oil well royalties prior to oering out to

investors.

Uses a bespoke structure specically

designed for investors regardless of

nationality.

The Venture International Commitment

Venture International Holdings Ltd is a

global business sourcing unique, carefully

considered and independently evaluated

investment opportunities.

Venture International facilitates avenues

of participation alongside our investment

partners, providing them with premium

investment opportunities and access to

professional oshore services.


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Investment Objective

The objective of the syndicate is to provide

the investors with high investment returns

in the medium term through investment in a

diversied range of investment options in the

major developing markets.

All our syndicated investments are classed as

low to medium in risk prole. 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

VENTURE INTERNATIONALSYNDICATES


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This investment is structured through Venture

Oil Investments Limited a Special Purpose

Vehicle (Syndicate Company). It is a Tax

Ecient single asset Investment Company

funded through syndicated investment.

The structure has been designed to be the

most ecient and protable way to add assets

into any investors portfolio, and extends an

opportunity to syndicate investment with other

known or unknown investors. Equally, 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 - in this case Oil Revenue.

The structure is simple, an oshore limitedliability company divided into equal shares, and

a company resolution to buy a single real asset

(1000 Barrels of oil) within certain investment

guidelines. The Articles of Association of this

Company are standard for most jurisdictions,

and are based on English Common Law.

On full subscription the Syndicate Company

eects the purchase contract of 1000 barrelsof oil from the contracted operator outright

and debt free, further more the shareholder

agreement prevents the directors from

raising debt on the asset without a majority

shareholding vote to do so. This further protects

the interests of investors.

The main element to this investment is a real

and tangible asset in the form of a forward

purchase contract in oil producing wells.

Shareholders

The Syndicate Company is ultimately owned

and managed by shareholders. 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.

Investment

The initial investment required to fully subscribe

to the Syndicate Company is calculated by

the gross purchase price of the 1000 barrels,

including administration and establishment

costs. In the case of this investment $48,000

USD. Minimum investment is $12,000 USD

for 250 Barrels so the maximum amount ofshareholders per syndicate is 4.

Annual Costs

Venture International Holdings Limited

Syndicate Managers fees are xed annually at

1% of the annual revenue. An additional annual

xed fee of 500.00 GBP per syndicate, is

payable from income received and coversthe oshore registration costs, and annual

reporting mechanisms of the company. Both

costs are charged annually in arrears and met

from the income received into the company.

Investment Returns

All projected investment returns in this

information have been calculated after allowing

for all the costs shown in this section, but

before any UK taxes payable by direct investors

themselves.

INVESTMENT STRUCTURE


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Taxation and the Syndicate Company

The following summary is a guide for investors

considering whether to invest in the Syndicate

Company. It is not specic advice for any

investor and any such investor requiring such

advice should speak to their specialist advisors.

Income Tax

The corporate structure established through

which the income from the rental guarantees

are received are tax ecient and mitigate annual

taxable income. Each individuals personal tax

circumstances will detail the amount and type

of tax due.

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. Thecircumstances 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.

Stamp Duty and Land Tax (SDLT)

The acquisition of an interest in the Syndicate

Company is outside the scope of UK stamp

taxes.

Value Added Tax

The Syndicate Company is formed in ajurisdiction to which VAT is not applicable.

TAXATION AND THESYNDICATE COMPANY


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Potential investors should carefully consider

the following risk factors in relation to the

investment, which individually or in aggregate

could have a material eect on the investment

return, and should consult their nancial

advisor before investing. 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

signicantly reduce the investment returns.

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. Dierences inlocation, procedures, facilities and property

rights transferred and many other variables make

a precise comparison between the comparable

sales, and this particular project dicult.

Subjective adjustments used to lessen these

diculties are highly speculative. Moreover,

there is no accurate way of determining whether

the sales prices actually paid represent market

values, because it is dicult to determine theexact motivations of the buyers and sellers, or

what special conditions may have inuenced

the sale.

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 nancial distress.

However, 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.

RISK FACTORS


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Market Risk

Volatility in economic growth rates, oil prices,

investment values and exchange rates may

aect returns as a result of their impact on the

performance of the investment.

Currency

The deposit into the investment is made from

Sterling into US Dollars. Returns are paid into

the Syndicate Company in US Dollars. There are

inherent risks in any exchange rate dependent

investment. 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. (This assumesthat all other variables are constant).

Investors should consider the current risk

associated with this investment over the

lifetime of the investment, as well as the

political considerations associated with these

jurisdictions and how they might aect 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, most

of which are detailed within this report. The

better the performance of the income revenue

at the time of sale, the higher the sale price will

be. 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 throughthe purchase of shares in a company, the asset

behind the investment is oil which is of a less

liquid nature than some other asset classes.

The investment period is for the xed term of 7

years (84 months).

If an investor wishes to sell their shares prior to

the end of the investment term, then additional

costs may have to be met by that investor, suchas share valuation and administration costs.

Shares if sold prior to the end of the investment

term will be oered for 30 days to remaining

syndicate shareholders, before they can be

oered for sale elsewhere.

RISK FACTORS (CONT)


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Death of an Investor during the Lifetimeof 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

notication of an investors death, the director

may oer 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 ofnotication of an investors death, the director

may oer the shares on the open market or to a

new investor at a fair market price.

In both of the above cases the denition of a

fair market price is a subjective one and the

investors beneciary 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 advisersfor any advice concerning the acquisition,

holding or disposal of the Ordinary Shares in

the Company (the Shares).


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VericationIn accordance with the Money Laundering

Regulations 2003, we will require verication

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.

ComplianceAll 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 oce under theprovisions 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.

MONEY LAUNDERING REGULATIONAND DATA PROTECTION


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Documents

Venture Oil Brochure 2