Documente Academic
Documente Profesional
Documente Cultură
Oklahoma 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 Finch
Managing Director
Osage 1 Project Ltd
Page 5
Acreage: 170
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 histo
1897
1907
1920
First commercial
well in Oklahoma
Territory discovered
at Bartlesville.
1901
1912
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.
Page 8
orical highlights
1930
1990
1927
1989
2003
Oklahoma is ranked
as the Number 2
state in production
of Natural Gas.
Page 9
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.
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.
Source: http://www.eia.gov/state/print.cfm?sid=OK
Page 13
10.44M
7.87M
10.64M
7.451M
10.83M
7.449M
10.19M
7.711M
11.17M
6.947M
10.77M
7.042M
10.76M
6.595M
9.436M
7.067M
10.55M
6.823M
9.733M
6.627M
10.25M
6.675M
10.52M
6.412M
10.01M
6.515M
9.945M
6.488M
9.769M
6.37M
9.688M
6.543M
9.544M
6.178M
10.36M
8.556M
5.183M
6.494M
6.432M
9.755M
5.99M
8.677M
5.637M
8.419M
5.812M
8.672M
5.513M
7.915M
5.683M
6.29M
Page 14
Source: E.I.A
Page 15
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.
Page 16
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
Page 19
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
The production from wells Mr. Herzfeld has drilledreworked, 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.
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Independent Parties
Page 24
Page 25
Page 27
Above - a stratigraphic illustration of sub-surface Osage County. The Desmoinesian Series is the main
focus of the project.
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Page 33
Risk warning
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 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.
Page 34
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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