ACQUISITION GUIDELINES

The rules of a successful Non-Operated Oil & Gas Investment program:

1. CASH is KING. The investment world is saturated with projects based on
intangible valuations. The principals of Oil States Trading focus on current
cash flow to determine our acquisition price.

2. Each interest purchased has a proven producing history and documentable
cash flow.

3. To keep our team small, we avoid operations (the physical management of
an oil or gas property) and the distractions that go with operations.

4. We strive to invest in properties with reputable operators and
developement potential.

5. We outline a profitable plan of action, then diligently search for and
evaluate opportunities within that strategy.

6. We target annual returns of 20% or greater in every acquisition.

7. We consult, when needed, with professional geologists, accountants and
explorationists who have a documented history of acquisitions in selected
areas.

8. We account for every penny spent or invested.

9. We are extremely selective in our properties and are always on the lookout
for new opportunities.