Investment Proposal Reclamation and development of Selyukhovskiy oilfield in Ukraine

2 Investment Proposal 100% of company’s share is offered for sale. This company is an investor and operator of joint activity on reclamation and development of Selyukhovsky oilfield. Location - Ukraine, Poltava region, Chernukhinsky district. Cost $ US.

3 Investment potential of oil extraction field in Ukraine Huge potential of the sphere, Competitive prime cost, Relatively chip professional labor power, Advantageous transit location.

4 Oilfield description Selyukhovsky oilfield was found in Area of the oilfield is located within the bounds of water-parting lines between rivers Sula and Uday and looks like a plain with multiple hills and divided by river valleys and ravines. Currently the oilfield is completely explored, according to results of seismic exploration works and well-drilling for exploration of core material, a model of accumulation of hydrocarbons was constructed, expected reserves were defined. Geophysical exploration was conducted, it confirms oil saturation of the revealed producing horizons. Selyukhovsky oilfield is classified as prospective and is enlisted in all deposits reference books. Under international classification it refers to a “Brown field” class.

5 Oilfield description At the state balance sheet there are reserves : - horizon В-20 Category С tons С tons - horizon В Category С tons С tons Total at horizons В-20, В-24-25, Category С tons, С tons Total amount of reserves of С1,С2 Categories tons All required equipment, tank farm and production premises for well- drilling and oil-production activity are available.

6 Financial components of the project 1.Cost of drilling of a new well with landing and wellsite engineering for 4000 meters depth will amount to: – During straight-hole drilling - about $ US., – During directional drilling - about $ US. 2. Repair of suspended wells, their launching and development make on average no more than $ US. 3. Current expenses on service and exploitation of operating oil well make $ US, mainly : – Wellsite rent – $ US (payment starts since the moment of commercial production, before start of production activity 50%), – Rent of storage fleet and infrastructure $ US after start of production activity, – Electricity $ US, – Rent of the land plot $ US.

7 Distribution of profit, gained in in the result of oil sale Before return of investments: Investor – 80% Company 1- 10% Company 2 – 10% After return of investments: Investor – 60% Company 1- 20% Company 2 – 20%

8 A map of the licensed field

9 INVESTMENT- REAL ESTATE DEVELOPMENT COMPANY “TITUL” CONTACTS: President of the company: Telman Abbasov Cell phone: Phone/fax: Website: