The Gulf Coast of North America has been, and remains, one of the most prolific hydrocarbon producing regions of the world. It has been the birth place and foundation for many of today’s successful oil companies. The Gulf Coast consistently yields high returns on the capital invested and intelligently employed. Osyka’s foundation is firmly established on the Gulf Coast. We currently have operations in three Gulf states: Mississippi, Texas, and Louisiana. With interests in over 200 wells in 14 fields, Osyka has achieved a strong reserve base with significant upside potential.

During 2005 the company drilled or participated in three wells. Two were successful and one was plugged and abandoned due to mechanical problems. Osyka plans to drill or participate in seven wells during 2006.

Our current three-state focus offers a variety of play types ranging from the salt ridges and basin margin faulting in Mississippi to the growth fault associated traps of Louisiana and Texas. Osyka’s philosophy is not to pursue a single trend or play type. Each project is evaluated on its individual economic strength and it fits to our overall portfolio.

Mississippi holds the majority of Osyka’s Proved Reserves. It is a primary focus of our operations and targets the robust Cretaceous and Upper Jurassic producing intervals. Our Texas and South Louisiana reserves are in the Tertiary. Osyka’s reserves are in excess of 90% oil.

Osyka has developed a number of projects that could be executed in the near future. These projects have the potential to considerably increase our reserve volumes and approximately double Osyka’s current valuation. The projects could also produce a more balanced ratio of gas to oil.

Strategic relationships are important to a growing company. Osyka is pursuing, and is open to, relationships that offer an opportunity to expand our interests throughout our core areas.