OPERATIONS

Our long-term goal is to grow our company by focusing on an appropriate program of exploitation and exploration drilling in the upstream oil and gas industry. To achieve our long-term goal, the Company has developed, and will continue to develop, a portfolio of operated and non-operated properties in which we have a high-working-interest. These properties, located exclusively in the U.S. Gulf Coast, generate cash flow and consistently earn above-average returns on capital employed.

Etoco’s strength, in large part, can be attributed to management’s operational and engineering expertise. To benefit fully from this expertise, the Company operates its properties whenever possible, thus giving it maximum control of its field activities.

The Company also maintains high working interests in its operated properties, to maximize the value created by improved field efficiencies and to minimize associated general and administrative expenses.

At Etoco, we invest in long-term projects that generate superior returns on capital employed, rather than develop short-term cash flow. Since 1987, Etoco has successfully acquired and subsequently developed numerous properties in Southeast Texas, resulting in significant reserve additions.