Company Background
In today's demanding, rapidly changing oil and gas market place, independent producers face a difficult task in maximizing revenues, minimizing risks and keeping administrative and overhead costs to a minimum. Maximizing the price a producer receives for its crude oil production demands a comprehensive knowledge and understanding of markets, transportation and pricing. In addition, the ability to aggregate volumes secures both higher prices and transportation discounts. EnerTrade, as an energy marketing consultant, achieves these goals for the independent producer.

EnerTrade’s aggressive, experienced marketing team has successfully served the independent producer for over 15 years. We have established long-term relationships with over 40 producers and have the flexibility and expertise to secure stable, profitable markets for our client's production. EnerTrade designs and implements a marketing plan that secures true market value and meets all of the client’s objectives. Our staff then manages the client's marketing activities as market conditions and client objectives change.

EnerTrade doesn’t just market a client’s crude oil production. EnerTrade evaluates each client's production to determine its real market value. The greatest value that EnerTrade can achieve for a client’s crude oil production is identified and disclosed to the client. Transportation, grade & posting differentials as well as refinery values (and anything else that affects the price that is available for a client’s crude oil) are identified and made known to the client. Marketing options brought about by EnerTrade’s volume aggregation and consolidation of barrels at trading locations (“hubs”) are made available to the Producer. Then, from EnerTrade’s portfolio of services, the client dictates how it wants to achieve the greatest value that is available for its production.


RISK MANAGEMENT - HEDGING & PRICE PROTECTION

EnerTrade can assist in the implementation of fixed price contracts, floor prices and other conservative futures market hedging tools that protect against downturns in price that occur in the market. EnerTrade has in place an alliance with Smith Barney providing EnerTrade clients with access to quality risk management tools. All fees are disclosed up-front and access to NYMEX related transactions can be secured easily and efficiently.


FINANCIALLY SOUND FIRST PURCHASER SERVICES

EnerTrade has teamed up with a financially sound first purchaser to offer first purchasing services to the producer.

In association with this financially sound first purchaser, EnerTrade is able to bundle its services and deliver at the wellhead pricing identified and secured by EnerTrade. Funds are paid to the client directly.

For additional information on this service, please call EnerTrade, Inc. at 817-332-5772 or e-mail Mike Schauwecker mike@enertrade.com.



CONSULTING SERVICES

Any of EnerTrade’s services can be contracted for on a consulting basis. All contracts and funds flow directly to the client from the purchaser of the products. The client is then billed by EnerTrade for services rendered.


ADDITIONAL SERVICES PROVIDED

EnerTrade will:

Continuously research and seek out marketing alternatives supporting existing production as well as production a Client is considering investing in.

Monitor all transactions and ensure that clients are receiving the contracted prices that are agreed upon between all parties.

Audit pricing a Client is receiving on properties under which a Client maintains a non-operating or royalty interest.

Subject to the Client’s approval, negotiate and prepare all contracts relating to marketing arrangements.

Coordinate all crude movements and scheduling.

Prepare customized reports and deliver accounting data in a manner that interfaces with the Client’s existing system and management needs.

In summary, EnerTrade will work with the Client’s personnel in an effort to minimize the administrative burden of marketing activities.


COMPENSATION

Compensation is normally based on results and in every case, the producer knows exactly how much EnerTrade is compensated (no “hidden agenda”). Other arrangements for compensating EnerTrade can be made depending on volume and the length of contract term. In many cases, compensation is provided for as a flat fee-per-barrel.