Filed pursuant to Rule 253(g)(2)
File No. 024-10585
Ziyen Inc.
Supplement No. 3
to the Offering Circular
qualified October 25, 2016
Dated: Oct 17, 2017
This Supplement No. 3 to the Offering Circular originally qualified October 25, 2016 (this “Supplement”) supplements the offering circular of Ziyen Inc. (“Ziyen”), dated October 14, 2016 (the “Offering Circular”). This Supplement should be read in conjunction with the Offering Circular (including the disclosures incorporated by reference therein). Unless otherwise defined in this Supplement, capitalized terms used in herein shall have the same meanings as set forth in the Offering Circular, including the disclosures incorporated by reference therein.
The purpose of this Supplement No.3 is to provide updated disclosure regarding the Compositional Analysis results for an oil sample obtained at the Ross et al Leasehold.
Compositional Analysis
Summary:
Ziyen Energy recently enlisted the services of Core Laboratories (UK), Petroleum Services Division in September to perform a compositional analysis of an oil sample sourced from the oil lease in Evansville, Indiana, referenced in Exhibit B - Oil and Gas Reserve Evaluation Report in Supplement No 1, filed on August 7, 2017.
High level points:
The reserve is a nice light crude, lacking any toxic, erosion or corrosion agents which will mean that our topside equipment should be easily maintained with a proper preventative maintenance regime.
The hydrocarbon ranging between C7 and C20 will minimize processing costs (no additional process complexity from H2S, waxes etc.), which means reaching premium as far as an unrefined crude goes.
There is nothing evident to suggest any other issue from the well product that could impact the ability to deliver to sales or flow with high availability: low water cut and minimized C2 - C4's: no hydrate issue, C36+'s are 7% mole weight so not much heavy end sludge (C60+), no amines, negligible benzene mean lower processing costs.
Low density, means that flow rates should be optimal
In summary, the news was exceptional. Ziyen Energy plans to use of the latest oil extraction methods for each well; —for oil which is compositionally of a high grade light crude which will ensure oil production and output will reach optimal operational levels.
The full Compositional Analysis report from Core Laboratories is included with this supplement.
Compositional Analysis
for
Ziyen Inc
2A
RFLA 201703638
FINAL REPORT
The analyses, opinions or interpretations in this report are based on observations and material supplied by the client to whom, and for whose exclusive and confidential use, this report is made. The interpretations or opinions expressed represent the best judgement of Core Laboratories (U.K.) Limited, (all errors and omissions excepted); but Core Laboratories (U.K.) Limited and its officers and employees assume no responsibility and make no warranty or representations as to the productivity, proper operation or profitability of any oil, gas or any other mineral well formation in connection with which such report is used or relied upon.
Petroleum Services Division
Core Laboratories (U.K.) Limited
Advanced Technology Centre
Howe Moss Drive, Kirkhill Industrial Estate, Dyce, Aberdeen AB21 0GL
Tel: +44 (0) 1224 421000 Fax: +44 (0) 1224 421003 Web: http://www.corelab.com

 | Petroleum Services Division Core Laboratories (U.K.) Limited Advanced Technology Centre Howe Moss Drive Kirkhill Industrial Estate Dyce, Aberdeen AB21 0GL Tel: +44 (0) 1224 421000 Fax: +44 (0) 1224 421003 Web: http://www.corelab.com |
3rd October 2017
Ziyen Inc.
1623 Central Avenue
Cheyenne
Wyoming 82001
USA
Attention: Mr. Shane Fraser
Dear Sir,
Subject: Compositional Analysis; well 2A: Ziyen Inc; our file RFLA 201703638
On 29th September 2017 one atmospheric oil sample collected from the subject well was delivered to our Aberdeen laboratory. The sample was subject to compositional analyses as specified by Ziyen Inc. Presented in the following report are the final results of all analyses.
Please note that the sample will remain at Core Laboratories (U.K.) Limited for a period of one month at which time it will be returned to Ziyen Inc Inverness unless otherwise instructed in writting by Ziyen Inc.
Core Laboratories (U.K.) Limited are very pleased to have been of service to Ziyen Inc. in this work. Should any questions arise concerning the data presented in this report, or if Core Laboratories (U.K.) Limited may be of assistance in any other matter, please do not hesitate to contact us.
Yours sincerely, | |
| |
Core Laboratories (U.K.) Limited | |
| |
/s/ Donald McNeil | |
Donald McNeil | |
RFL Supervisor | |
 | FINAL REPORT |  |
Ziyen Inc | FINAL REPORT |
2A | RFLA 201703638 |
Table of Contents
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Section A - Summary of Analysis Methods
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Summary of Analysis Methods
Stabilised Liquid Compositions
The stabilised liquid composition was determined by temperature programmed high resolution capillary gas chromatography utilising a cold-on-column injection technique.
Calculation of Molar Compositions and Residual Fraction Properties
The molar compositions and residual fraction properties are calculated entities, which are derived using the measured weight % distribution and molecular weight and density properties for the carbon number groups present.
There are four main ways to calculate a molar composition:
i. balanced to a flashed liquid measured molecular weight and density using pseudo component properties. This results in compositions which calculate the residual fraction properties by material balance such that the calculated whole liquid molecular weight and density equals that which was measured. The flashed liquid density is measured by digital densitometer in accordance with IP Method 365. The flashed liquid molecular weight is determined using an in-house method utilising the depression of the freezing point of Benzene.
ii. not balanced to a measured molecular weight using pseudo component properties. In this case, a residual fraction molecular weight and density is assigned and the calculated whole oil molecular weight and density will not necessarily equal that which was measured (un-balanced). The assigned properties are derived from systematic approach using a linear regression technique. The log mole % versus mole weight is plotted for carbon number groups C20-C35 and extrapolated to zero mole %. The mid point molecular weight between the last defined component C35 and zero composition is assigned as the C36+ molecular weight. The density corresponding to the mid point molecular weight is taken from published property tables (Katz and Firoozabadi) and assigned as the C36+ value.
iii. calculated from measured (not pseudo component) data using properties measured on distillation fractions. In this case the residual fraction properties can also be measured.
iv. calculated from pseudo component data using properties taken from published property tables (Katz and Firoozabadi).
In the context of this analysis the molar composition of the atmospheric oil sample was calculated using approach i
Water Content by Karl Fischer Technique (IP 356)
A weighed representative portion of the flashed liquid was injected into a titration vessel of a volumetric Karl Fischer apparatus containing a mixed solvent. The water present was titrated to a potentiometric end point using Karl Fischer reagent. The test was repeated to confirm the initial result.
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Section B - Compositional Analysis
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Compositional Analysis of Atmospheric Oil Sample to C36+
| | Component | | Mole % | | | Weight % | |
H2 | | Hydrogen | | | 0.000 | | | | 0.000 | |
CO2 | | Carbon dioxide | | | 0.000 | | | | 0.000 | |
N2 | | Nitrogen | | | 0.000 | | | | 0.000 | |
C1 | | Methane | | | 0.032 | | | | 0.002 | |
C2 | | Ethane | | | 0.086 | | | | 0.010 | |
C3 | | Propane | | | 0.029 | | | | 0.005 | |
iC4 | | i-Butane | | | 0.036 | | | | 0.008 | |
nC4 | | n-Butane | | | 0.134 | | | | 0.030 | |
C5 | | neo-Pentane | | | 0.000 | | | | 0.000 | |
iC5 | | i-Pentane | | | 0.238 | | | | 0.066 | |
nC5 | | n-Pentane | | | 0.299 | | | | 0.083 | |
C6 | | Hexanes | | | 1.324 | | | | 0.439 | |
| | Me-Cyclo-pentane | | | 0.262 | | | | 0.085 | |
| | Benzene | | | 0.010 | | | | 0.003 | |
| | Cyclo-hexane | | | 0.099 | | | | 0.032 | |
C7 | | Heptanes | | | 3.459 | | | | 1.334 | |
| | Me-Cyclo-hexane | | | 0.773 | | | | 0.292 | |
| | Toluene | | | 0.062 | | | | 0.022 | |
C8 | | Octanes | | | 6.494 | | | | 2.855 | |
| | Ethyl-benzene | | | 0.969 | | | | 0.396 | |
| | Meta/Para-xylene | | | 0.399 | | | | 0.163 | |
| | Ortho-xylene | | | 0.257 | | | | 0.105 | |
C9 | | Nonanes | | | 5.701 | | | | 2.814 | |
| | Tri-Me-benzene | | | 0.333 | | | | 0.154 | |
C10 | | Decanes | | | 7.122 | | | | 3.900 | |
C11 | | Undecanes | | | 6.110 | | | | 3.457 | |
C12 | | Dodecanes | | | 5.497 | | | | 3.406 | |
C13 | | Tridecanes | | | 5.850 | | | | 3.940 | |
C14 | | Tetradecanes | | | 4.934 | | | | 3.608 | |
C15 | | Pentadecanes | | | 4.601 | | | | 3.648 | |
C16 | | Hexadecanes | | | 3.752 | | | | 3.206 | |
C17 | | Heptadecanes | | | 3.540 | | | | 3.229 | |
C18 | | Octadecanes | | | 3.563 | | | | 3.442 | |
C19 | | Nonadecanes | | | 3.162 | | | | 3.201 | |
C20 | | Eicosanes | | | 2.668 | | | | 2.824 | |
C21 | | Heneicosanes | | | 2.272 | | | | 2.545 | |
C22 | | Docosanes | | | 2.197 | | | | 2.579 | |
C23 | | Tricosanes | | | 1.892 | | | | 2.315 | |
C24 | | Tetracosanes | | | 1.787 | | | | 2.276 | |
C25 | | Pentacosanes | | | 1.590 | | | | 2.111 | |
C26 | | Hexacosanes | | | 1.482 | | | | 2.047 | |
C27 | | Heptacosanes | | | 1.327 | | | | 1.910 | |
C28 | | Octacosanes | | | 1.264 | | | | 1.888 | |
C29 | | Nonacosanes | | | 1.200 | | | | 1.857 | |
C30 | | Triacontanes | | | 1.166 | | | | 1.867 | |
C31 | | Hentriacontanes | | | 0.987 | | | | 1.633 | |
C32 | | Dotriacontanes | | | 0.864 | | | | 1.477 | |
C33 | | Tritriacontanes | | | 0.794 | | | | 1.400 | |
C34 | | Tetratriacontanes | | | 0.749 | | | | 1.361 | |
C35 | | Pentatriacontanes | | | 0.638 | | | | 1.194 | |
C36+ | | Hexatriacontanes plus | | | 7.996 | | | | 24.781 | |
| | | | | | | | | | |
| | Totals: | | | 100.000 | | | | 100.000 | |
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Compositional Analysis of Atmospheric Oil Sample to C36+
Calculated Residue Properties | | | | |
| | | | |
C7+ | | | | |
Mole% | | | 97.822 | |
Molecular Weight (g mol-1) | | | 264 | |
Density at 60°F (g cm-3) | | | 0.8788 | |
| | | | |
C11+ | | | | |
Mole% | | | 71.882 | |
Molecular Weight (g mol-1) | | | 315 | |
Density at 60°F (g cm-3) | | | 0.9050 | |
| | | | |
C20+ | | | | |
Mole% | | | 30.873 | |
Molecular Weight (g mol-1) | | | 472 | |
Density at 60°F (g cm-3) | | | 0.9554 | |
| | | | |
C36+ | | | | |
Mole% | | | 7.996 | |
Molecular Weight (g mol-1) | | | 806 | |
Density at 60°F (g cm-3) | | | 1.0561 | |
| | | | |
Calculated Whole Sample Properties | | | | |
| | | | |
Average mole weight (g mol-1) | | | 260 | |
| | | | |
Density at 60°F (g cm-3) [Measured] | | | 0.8767 | |
| | | | |
Entrained water content (wt%) | | | 0.08 | |
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Chromatographic Profile of Atmospheric Oil Sample
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Section C - Appendix
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Data Used in Liquid Compositional Calculations
| | | | Mole Weight | | | Density | | | | | | | Mole Weight | | | Density | |
Component | | | | (g mol-1) | | | (g cm-3 at 60°F) | | | Component | | | | (g mol-1) | | | (g cm-3 at 60°F) | |
| | | | | | | | | | | | | | | | | | |
Hydrogen | | **** | | | 2.016 | | | | N/A | | | Undecanes | | *** | | | 147 | | | | 0.7890 | |
Helium | | ** | | | 4.003 | | | | N/A | | | Dodecanes | | *** | | | 161 | | | | 0.8000 | |
Hyd. sulphide | | ** | | | 34.081 | | | | 0.8006 | | | Tridecanes | | *** | | | 175 | | | | 0.8110 | |
Carbon Dioxide | | ** | | | 44.010 | | | | 0.8172 | | | Tetradecanes | | *** | | | 190 | | | | 0.8220 | |
Nitrogen | | ** | | | 28.013 | | | | 0.8086 | | | Pentadecanes | | *** | | | 206 | | | | 0.8320 | |
Methane | | ** | | | 16.043 | | | | 0.2997 | | | Hexadecanes | | *** | | | 222 | | | | 0.8390 | |
Ethane | | ** | | | 30.070 | | �� | | 0.3558 | | | Heptadecanes | | *** | | | 237 | | | | 0.8470 | |
Propane | | ** | | | 44.096 | | | | 0.5065 | | | Octadecanes | | *** | | | 251 | | | | 0.8520 | |
i-Butane | | ** | | | 58.122 | | | | 0.5623 | | | Nonadecanes | | *** | | | 263 | | | | 0.8570 | |
n-Butane | | ** | | | 58.122 | | | | 0.5834 | | | Eicosanes | | *** | | | 275 | | | | 0.8620 | |
i-Pentane | | ** | | | 72.149 | | | | 0.6238 | | | Heneicosanes | | *** | | | 291 | | | | 0.8670 | |
n-Pentane | | ** | | | 72.149 | | | | 0.6305 | | | Docosanes | | *** | | | 305 | | | | 0.8720 | |
Hexanes | | * | | | 86.18 | | | | 0.6631 | | | Tricosanes | | *** | | | 318 | | | | 0.8770 | |
Me-cyclo-pentane | | * | | | 84.16 | | | | 0.7533 | | | Tetracosanes | | *** | | | 331 | | | | 0.8810 | |
Benzene | | * | | | 78.11 | | | | 0.8820 | | | Pentacosanes | | *** | | | 345 | | | | 0.8850 | |
Cyclo-hexane | | * | | | 84.16 | | | | 0.7827 | | | Hexacosanes | | *** | | | 359 | | | | 0.8890 | |
Heptanes | | * | | | 100.20 | | | | 0.6875 | | | Heptacosanes | | *** | | | 374 | | | | 0.8930 | |
Me-cyclo-hexane | | * | | | 98.19 | | | | 0.7740 | | | Octacosanes | | *** | | | 388 | | | | 0.8960 | |
Toluene | | * | | | 92.14 | | | | 0.8734 | | | Nonacosanes | | *** | | | 402 | | | | 0.8990 | |
Octanes | | * | | | 114.23 | | | | 0.7063 | | | Triacontanes | | *** | | | 416 | | | | 0.9020 | |
Ethyl-benzene | | * | | | 106.17 | | | | 0.8735 | | | Hentriacontanes | | *** | | | 430 | | | | 0.9060 | |
Meta/Para-xylene | | * | | | 106.17 | | | | 0.8671 | | | Dotriacontanes | | *** | | | 444 | | | | 0.9090 | |
Ortho-xylene | | * | | | 106.17 | | | | 0.8840 | | | Tritriacontanes | | *** | | | 458 | | | | 0.9120 | |
Nonanes | | * | | | 128.26 | | | | 0.7212 | | | Tetratriacontanes | | *** | | | 472 | | | | 0.9140 | |
1-2-4-T-M-benzene | | * | | | 120.19 | | | | 0.8797 | | | Pentatriacontanes | | *** | | | 486 | | | | 0.9170 | |
Decanes | | * | | | 142.28 | | | | 0.7335 | | | | | | | | | | | | | |
Data Source Refs :
| * | ASTM Data Series Publication DS 4B (1991) - Physical Constants of Hydrocarbon and Non-Hydrocarbon Compounds. |
| ** | GPA Table of Physical Constants of Paraffin Hydrocarbons and Other Components of Natural Gas GPA 2145-09. |
| *** | Journal of Petroleum Technology, Nov 1978, Pages 1649-1655. |
Predicting Phase Behaviour of Condensate/Crude Oil Systems Using Methane Interaction Coefficients - D.L. Katz & A. Firoozabadi.
| **** | NIST Database (September 2016). |
Note:
The residue mole weight and density values (e.g. heptanes plus, undecanes plus, eicosanes plus) are calculated so that the calculated average mole weights and densities correspond with the measured values. This can lead to anomalous residue mole weights and densities where the Katz and Firoozabadi values may not be suitable for the isomer groups detected.
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Report prepared by | | Report approved by |
| | |
/s/ Adam Meldrum | | /s/ Donald McNeil |
Adam Meldrum | | Donald McNeil |
Project Co-ordinator | | RFL Supervisor |
Core Laboratories (U.K.) Limited |
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