Generating an Income in the Oil Market

Transcription

1 Generating an Income in the Oil Market 1

2 Contents: Introduction Page 3 Location. Page 4 About the Partners. Page 5 About the land Page 5 About the investment Page 6 FAQs.. Page 7 Contact Details.. Page 8 2

3 Everyone is touched by America s oil and natural gas industry How so? Farmers use fertilizer made from natural gas. Truckers use diesel fuel to ship goods to market and businesses rely on oil and natural gas to make and sell their products and provide their services. If you buy a loaf of bread, purchase a new electronic gadget, or drive a car, consider yourself a part of the oil and natural gas industry. From airline pilots to welders, and every job in between, we ve all got a stake in our energy future. Introduction Investex Global are proud to present an exclusive income generating investment vehicle. You will discover its workings are simple and transparent when reading on. The opportunity is ultimately an acquisition of a percentage ownership in oil and natural gas wells in a known producing area in Illinois, USA. Project Coordinators: Sunset Oil and Gas LLC Drilling Contractor: Les Wilson INC Purchaser: Bi-Petro Inc. Geologist: Mr John Upcraft Investex Global are presenting this opportunity post geological survey and by focusing on known producing sites, the parties involved are able to mitigate risk and extend returns making this an attractive opportunity for both experienced oil and gas investors, and those who wish to gain involvement for the very first time. Location: South McLeansboro, Hamilton County, Illinois, USA Coordinates: , Stage: Post Survey Direction: Vertical Drilling Area Average: barrels per day (b/d) Availability: % x 30 Returns: Monthly Lifespan: 20 years (approx.) 3

4 Location The project is taking place south of McLeansboro, Hamilton County, Illinois, USA. Geographical Coordinates , The area can be seen in greater detail on the Illinois Geographical Survey website and on Google Earth. Note: The area available to Sunset Oil and Gas Partners LLC is identified above by the red box. Hamilton County, Illinois. 4

5 About the Partners Sunset Oil and Gas LLC Sunset Oil and Gas Partners is an independent oil and gas producer in the state of Illinois, USA. By focusing on known producing areas they are able to develop high impact projects whilst maintaining a well-diversified portfolio of oil and gas prospects. The management team of Sunset Oil and Gas Partners boasts a combined experience of over 75 years with an enviable track record of returning 100% of capital invested within an 18-month timeframe. Les Wilson Inc Les Wilson Inc operates one of the finest fleets of rotary and service rigs in the Illinois Basin and is proud to hold the reputation of the preferred drilling company. The company was conceived in 1939 and now has over 70 years of experience. Knowledge of the geology of the Illinois Basin is ingrained within the company and its employees from their Engineers to Geologists, Rig Managers to Production Technicians. With Les Wilson Drilling serving so many oil producers with efficient oil and gas drilling, over so many years, we couldn t be more confident in their ability and the benefits they bring to this opportunity. The Geologist Mr John Upcraft is a Certified Professional Geologist (AIPG-CPG 8485) with more than 30 years industry experience, much of which has been spent in the exploration of oil and gas in the Illinois Basin. He has completed the geographical survey, on behalf of Sunset Oil and Gas Partners LLC, using state of the art geological surveying techniques and is, without doubt, a highly valued asset to this project. Note: A copy of the full Geological Report is available upon request. Bi-Petro Inc. Bi-Petro has been serving independent oil producers in the Illinois Basin for over 30 years. Founded in 1973, Bi-Petro has always focused on its producers as its main priority. It purchases oil and gas at a very competitive rate, all of which is transparently shown on its website, then transports this to the refinery companies. This enables producers to concentrate on their job of production while knowing they always have a buyer in place ready to offer the most competitive price available. About the Land The Illinois Basin The Illinois Basin is relatively mature reservoir which still boasts an abundance of opportunities for both primary and advanced recovery techniques. Estimate calculations show that around two-thirds of the reservoirs remain below the surface, despite over 70 years of extraction. The basin itself covers 59,000 square miles through Illinois, Indiana and Kentucky and is known for its high gravity, low sulphur oil, which is highly coveted. The average pay zones in the area range between 1,000 feet and 5,000 feet deep, with an average of 3,000 feet. Deeper pay zones, however, are showing extensive promise, especially the Warsaw and Salem formations, both of which are targeted in the available well. 5

6 About the Investment The investment is Percentage Ownership 1 contract purchases % of the well 1 contract is 16, Returns generated per barrel of oil produced The price per barrel is dictated by WTI (West Texas Intermediate) minus $8 (as its pre -refinery) and is exited directly to the refinery The oil well runs 24 hours per day, 7 days per week The investor is paid on a monthly basis Limited availability due to only 30 contracts per well Facts and Figures The below examples are based on 1 contract (worth A dud well as it is known, only produces approx. 9 barrels per day: Monthly income: Yearly Income: 1, The average well in the Illinois Basin produces between barrels per day: Monthly income: 2, Yearly Income: 26, Based on the previous well (600 feet away) 288 barrels per day: Monthly income: 5, Yearly Income: 62, ,000) * All calculations are derived using the below equation and figures Equation: [(Barrels produced per day x Days in month) x (Price of West Texas Crude - $8)] x % = $monthly return Figures: - The figure of $78.7 is used to express the price of West Texas Intermediate - The exchange rate of is used to convert USD to GBP - The figure of 30 is used for the days in the month * Please note that all figures are subject to changes dictated by the market 6

7 FAQs Q. This all sounds too good to be true what is the risk? A. The biggest risk is if the well does not hit oil. If this is the case, you will not see a return on your investment. We have, however, mitigated this risk as much as possible by presenting this opportunity post geological survey, and by partnering with companies who have over 70 years experience drilling within the Illinois Basin. Q. What specifically is this capital being used for? A. The capital being raised is to pay for the costs of drilling only. All other costs that have been incurred to this stage have already been paid via the parties involved (i.e. the land, the geologist, drilling equipment, etc). Q. How many wells are being drilled? A. There are a total of 16 new wells being drilled. An excellent way to hedge risk is to invest in multiple wells. Q. When will the drilling commence? A. The drilling will commence as soon as the funds have been raised and may take up to 12 weeks before oil is produced. Q. How long will the well produce oil for and how much will it produce? A. The average lifespan of a well is approx. 20 years. Should the well hit oil, the initial production will be high and decrease over time. Investors are usually paid out within 12 to 18 months. Q. Can I exit? A. If the well has hit oil, yes. Sunset Oil and Gas LLP will have first refusal on your contract. Q. Brent Crude has recently been announced as the global benchmark in oil price. How does this effect WTI? A. WTI is universally considered as oil of the highest quality due to its nature being light, sweet (high sulphur content) and therefore easier to refine than Brent Crude. One of the issues surrounding this commodity is logistics there simply isn t enough capacity in terms of pipelines to distribute WTI being produced. This is now changing as new pipelines are being built to accommodate distribution in relation to production. * More comprehensive information can be provided upon request Q. What are your fees? A. Investex Global only take 2% of any profit that is made. This will be deducted from your monthly payments Essentially, we do not get paid unless you do. Example (Based on the average 120 barrels per day in the example shown on page 6): Monthly income: 2, Investex Global Fee: Please contact us if you have any questions or wish to learn more about this exclusive opportunity. 7

8 Website: Telephone Number: +44 (0) Fax Number: +44 (0) Address: Investex Global 37 th Floor Canary Wharf London E14 5AA 8