History and Purpose

Early in 2000, Orleans Capital Management Corporation (OCM) in conjunction with Simmons & Company International (SCI) identified a unique, opportunistic investment theme focusing on the developing global energy supply and demand dynamics. That fall, OCM launched its Energy Opportunities investment strategy, which is a long only, equity investment strategy designed to capitalize on increasing energy expenditures necessary to supply the energy required by a growing global economy. In executing this strategy, OCM teamed with SCI, the only independent investment bank specializing in the entire spectrum of the energy industry. Founded in 1974, SCI has acted as financial advisor in over $143 billion of transactions, including 567 merger and acquisitions worth over $100 billion. Pursuant to a Research and Sub-Advisory Agreement, SCI provided OCM with energy research and sub-advisory services used by OCM in the execution of the Energy Opportunities strategy.

During 2008, OCM and SCI formed Energy Opportunities Capital Management, L.L.C. (EOCM) as a separate entity to manage the Energy Opportunities Original and the related Alternatives investment strategies. EOCM is a Delaware limited liability company, formed on May 9, 2008. EOCM became an SEC registered investment adviser on October 6, 2008. EOCM was formed to act as successor to the Energy Opportunities Original and Alternatives investment strategies developed by OCM.

The Energy Opportunities strategy is designed to capitalize on existing and developing energy supply and demand fundamentals and their impact on various companies within the universe of publicly traded equity securities. Investment decisions are the product of the combined investment expertise of EOCM's portfolio managers coupled with input from OCM and the world renowned energy industry insight and knowledge of SCI.

The primary thrust of the strategy is to capitalize on the ongoing positive supply and demand fundamentals that exist in energy markets. Among other things, we emphasize those sectors and companies that are beneficiaries of the necessary capital expenditures that will be required to generate the supply required to maintain and support increasing global energy demand and global economic growth. The fundamental investment objective is to produce returns superior to energy related benchmarks and broad market equity indices by investing in a diversified portfolio of energy company equities designed to capitalize on existing energy supply and demand fundamentals.

EOCM believes that the current and developing global energy supply and demand fundamentals provide an investment opportunity given the increased levels of capital spending that will be required to produce supply sufficient to meet growing global energy needs. EOCM is specifically equipped to understand and capitalize upon this opportunity given the individuals involved in day to day portfolio management as well as the world renowned energy insight and research provided by SCI. More specifically, EOCM believes that companies within the oil service sector are most likely to benefit from the market environment. SCI has been throughout its history the premier provider of investment banking and research services related to the oil service sector in particular.

Simmons & Company International (SCI) is a privately held investment bank specializing in the entire spectrum of the energy industry. Founded in 1974 by Matthew Simmons (current Chairman), the firm has acted as financial advisor in over $134 billion in transactions including over 40% of energy service transactions and has participated in more equity offerings than any other competitor (energy services and E&P). The firm has the leading energy research team covering upstream, midstream, downstream and alternative energy sectors.

Orleans Capital Management (OCM) is a privately held Registered Investment Advisor that was founded in 1991 by Louis Crane, current Chief Executive Officer. Its principle investment strategies focus on advisory services to wealthy individuals, trusts and pension systems and has nearly $2 billion in assets under management.

Energy Opportunities was a 50/50 venture between Orleans Capital Management (portfolio manager) and Simmons & Company International (research sub-advisor) that began in 2000. Its investment strategy was based on the then-emerging thesis of relentless growing energy demand in non-OECD regions coupled with the diminishing ability to meaningfully and cheaply impact global supply growth and the correspondent infrastructure challenges. The key investment professionals have been Farrell Crane (OCM) and Scott Gill (SCI).

Energy Opportunities Capital Management (EOCM) was formed in 2008. Orleans Capital Management and Simmons & Company International formalized a corporate structure (50% owned by each firm) to further advance the Energy Opportunities investment strategies. Farrell Crane and Scott Gill remain as principals of the Energy Opportunities family of strategies.