Oil & Gas Exploration

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

OSAGE 1 Project Overview

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

Investors gain peace of mind by investing

through a UK Limited Company.

Operator: Oklahoma HC-5A LLC.

Low entry level of just 4,900.

Acreage: 170

4,900,000 shares made available at 1.00 per

share.

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) M
 ultiple 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.

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.

Oklahoma is the fifth largest producer of oil in

the United States.

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.

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.

Osage County opens with

prolific Burbank discovery.

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.

Cushing Field establishes the

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

Page 8

orical highlights

1930

1990

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.

Oklahoma natural gas

production reaches an alltime high of 2.26 trillion
cubic feet.

1927

1989

2003

Oklahoma City field

discovered and soon becomes
the nations largest.

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.

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

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, 2012

7.87M

Aug 31, 2014

10.64M

July 31, 2012

7.451M

July 31, 2014

10.83M

June 30, 2012

7.449M

June 30, 2014

10.19M

May 31, 2012

7.711M

May 31, 2014

11.17M

April 30, 2012

6.947M

April 30, 2014

10.77M

March 31, 2012

7.042M

March 31, 2014

10.76M

Feb 28, 2012

6.595M

Feb 28, 2014

9.436M

Jan 31, 2012

7.067M

Jan 31, 2014

10.55M

Dec 31, 2011

6.823M

Dec 31, 2013

9.733M

Nov 30, 2011

6.627M

Nov 30, 2013

10.25M

Oct 31, 2011

6.675M

Oct 31, 2013

10.52M

Sept 30, 2011

6.412M

Sept 30, 2013

10.01M

Aug 31, 2011

6.515M

Aug 31, 2013

9.945M

July 31, 2011

6.488M

July 31, 2013

9.769M

June 30, 2011

6.37M

June 30, 2013

9.688M

May 31, 2011

6.543M

May 31, 2013

9.544M

April 30, 2011

6.178M

April 30, 2013

10.36M

March 31, 2011

March 31, 2013

8.556M

Feb 28, 2011

5.183M

Feb 28, 2013

6.494M

Jan 31, 2011

6.432M

Jan 31, 2013

9.755M

Dec 31, 2010

5.99M

Dec 31, 2012

8.677M

Nov 30, 2010

5.637M

Nov 30, 2012

8.419M

Oct 31, 2010

5.812M

Oct 31, 2012

8.672M

Sept 30, 2010

5.513M

Sept 30, 2012

7.915M

Aug 31, 2010

5.683M

6.29M

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

Top Economic Facts about Oklahomas

Oil and Gas Industry
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.

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.

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.

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 bestperforming public companies based in the state are
in the energy 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

The Oklahoma Team Members

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.

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:

Rick has been hired as a consultant by several oil & gas

companies in Oklahoma and Kansas to work on well
drilling/field development programs.

PEMCO - Wildcat Well Services - Universal Wireline

Equipment Cooper Rig - Serva Group - Tulsa
Equipment Manufacturing.

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 gaslift 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.

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.

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

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.

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.

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 startup 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.

He was directly responsible for millions of dollars

in sales of CAD/CAM systems to Fortune 500

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.

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.

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.

Page 23

Independent Parties

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 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).

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.

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.

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.

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.

Page 24

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.

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.

Page 25

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.

Page 27

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 oilproducing zones.

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

Page 28

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.

Page 31

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.

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.

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.

Information on past performance is not an indicator for future

performance.

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 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.

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.

Page 35