HISTORIC PERSPECTIVE

These opportunities come about as a result of capitalism at it's best.
In the constant ebb and flow of the market, properties are made available as
owners seek to achieve their financial goals.

In the first century of the Oil & Gas era, companies became giants by drilling
unproven acreage in hopes of a big payoff. In the second century, most new
industry players have grown through acquisition of existing production and
the enhancement of those properties.

The success of these companies has, in turn, created a niche opportunity for
Oil States Trading. Each oil and gas company has its own investment criteria.
As each company manages its business, properties are acquired, sold or traded
to best suit their portfolio goals. In this active management, properties that are
not aligned with that company’s goals are often liquidated. This becomes an
opportunity for OST.

In addition to purchasing small interests from large companies, opportunities
abound to purchase cash flows from small owners as well. As a ready buyer of
such interests, Oil States Trading routinely evaluates and purchases deeply
discounted interests from estates, individuals, financial institutions and other
companies.