INVESTMENT SUMMARY
Oil States Trading, LLC (OST), is actively acquiring income-producing
oil and gas interests. OST is not the operator of any of these leases.
Net revenues from operations are distributed as follows: 50% is
disbursed to the partners monthly, and 50% is reinvested to acquire
new properties and continue acquisitions. OST acquires and sells
properties as needed to develop a risk-adverse position in the oil
and gas industry.
New money coming into OST is treated in a First-In, First-Out method
(FIFO); meaning the money received by the sponsor is placed in line for
investment in the order received and escrowed in the Oil States Trading, LLC.
Trust account at First Financial Bank Trust Department, Abilene, Texas.
Once the money has been invested in a property, the new investors that are
next in line begin to receive distributions from the monthly net revenue
generated by all properties. New money invested is not eligible for
distributions until the month following the investment of the new capital
in an income producing property.
Hedging is used to protect cash flow from commodity price fluctuations
when it is deemed advantageous.
Details of the program are available from OST. The partnership agreement
details the management and accounting procedures for the partnership.
This investment is suitable for accredited investors only. After qualifying
questions have been addressed, the full offering document and partnership
agreement may be furnished by a principal of OST.
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