Investment Opportunity - Crude Oil Block, Indonesia

by Mr. Carlos J Cruz
(Lawrence, MA, USA)

My name is Carlos J Cruz, I represent the company Nativo International, which has a series of projects in Asia and Eastern Europe, mainly in Indonesia.
The purpose of contacting you through this communication is to present this business opportunity to your esteemed company.
Below you will find a short description with several options related to the project in Indonesia, which my client, Nativo International, wishes to discuss with you for a possible negotiation between your companies.
We are currently an Investment House specialized in the Oil & Gas, Energy and Mining Sector.
It is an honor for us be in contact with your prestigious firm and we would like to make you the follow inquiry:

We are currently looking for the best option of business offers as an Investment partner or an investment loan or any other workable business option for us.

We currently have the following scenario in Indonesia:
• 3 Wells Ready-to-Drill (28.5 MMBO rec.) - First Phase.
• Proven Petroleum System (Large Oil Fields). (Reserve Study Completed) - (2D and 3D).
• Reserve studies with more than 205 MMBO rec.
• With approx. 11 years of full recovery work.
• With approximately USD$21MM invested to date.
• Low-Risk Prospects and Development.
• Nearby Infrastructure (roads, oil pipelines, production facilities).
• Cluster Prospects can be drilled quickly and efficiently.
• Offtake is PERTAMINA Indonesia. (Agreement Previously Signed).
• A public listed company is the owner of the project and all its assets. The PLC is listed on the Singapore stock exchange (SGX).
• The company has approximately USD$2.6MM into account of bank deposit.
• Full Compliance Measures are already covered.
• The executive team and partners is composed for the best professional in Asia in this business area.
General Information
1. Concession signed: 20th July 2012.
2. Duration: 30 Years.
3. Total Area: 5,700 sq. km.
4. We can start the production in about 15th to 18th months’ time. This corresponds to the first year on the schedule.
5. This block had been operated by Chevron for more than 20 years.
6. Currently in the area several worldwide largest corporations are in operation in others blocks next to us.
7. Ours Oil & Gas Team has one of the most professional team of the South Asia, gentlemen from the Massachusetts Institute of Technology "MIT", former Companies Presidents, former Companies CEOs and former Governments Minister (Chevron, Arco, Unocal Deepwater, etc..). One of the them is a US Citizen.
Currently we have from our side three (3) difference business scenarios as an options for your Fund:

(1st Option). - Investment Loan:
We currently need an investment loan with the current budget of USD$28.5MM.

The repayment of the USD$28.5MM can be guaranteed in less than 24 months as soon as we start the production but as you know is not attractive business for your fund or any of your investors provide a loan for less than 4 years. We can accept negotiate a 10% to 15% IRR per Year according to the terms and conditions of the loan.
(2nd Option). - The 25% shareholding acquisition for the lives of the project:
We are able to giving to your Fund a shareholding of 25% for the life of the project plus share a join administration. Currently we have in our corporate equation a drilling company as a partner in Indonesia with very good and competitive cost that is why our in our budget the drilling cost are very cheap. Other terms and conditions can be discuss and establish in the right moment.
For the 25% shareholding we are seeking the sum of USD$35MM, this amount will including all the CAPEX development project costs.
(3rd Option). - The 51% shareholding acquisition for the lives of the project:
We are able to giving to your Fund a shareholding of 51% for the life of the project plus share a join administration and control of the company. All about the local engineering operations we prefer handling all under our control because we know the market and we have a very close relationship with the government.

As I told you above, currently we have in our corporate equation a drilling company (PERTAMINA) as a partner in Indonesia with very good and competitive cost that is why our in our budget the drilling cost are very cheap. Other terms and conditions can be discuss and establish in the right moment.

For the 51% shareholding we are seeking the sum of USD$70MM, this amount will including all the CAPEX development project costs.

Working in this final option, we would like to establish from Day One that we prefer to agree not increase the stock/shareholding capital of the company.

We had the breakdown of the capital required as a function of time. In case of interest please let me know to proceed in do the signing of the NDA and share with you all documents Including the Offtake Agreement.

In case of your satisfaction after the revision of the documents, If you like to exploring this business opportunity let me know, we are ready to signed an MOU and/or MOA in case of understanding; in case that you required we are able to sending to you all the documents of this first Indonesia business Options. Also, we have no problem in do the signing of an Engagement letter after do the revision of the document.

This project is ready to go, can be in production in about 15th to 18th months’ time.


PS: We are open to negotiate based on any of the business options, always in the understanding and in a favorable way for the parties.

We have a second Indonesia business scenario in other wells which is in currently production of 900BBLL/day, we want to increase the crude oil production. Also, we have a third Indonesia business scenario and/or option. But we can discuss this last two options as soon as we move forward in the first Project.
We have in Kazakhstan another two business scenarios and/or options in a very similar situation as this first project.
All the options we control and owned are under the PLC business structure format, with full studies, studies of reserves, off takes agreement signed, all the permits in place, etc. Projects which are ready to go.

If you consider it convenient, we can coordinate a conference call via Skype, to offer more details regarding the project, because the partners are in London, Indonesia, Houston, and the Caribbean, a conference call is more convenient.

You can contact us at your convenience, for any questions,

We hope hear from you soon,

Best Regards,

Carlos J Cruz