Grand Energy, Inc. was incorporated under the laws of the State of Texas in March 1984 to engage in the development of oil and natural gas in the United States, primarily in Texas, Oklahoma and Louisiana. Since 1984 Grand Energy has been the Managing Partner and Operator in nearly 200 wells throughout the United States. Grand Energy Inc., Grand Energy Inc. Addison TX, Texas Crude Petroleum and Natural Gas, Addison Oil and Gas Producers, 75001

1. The oil service sector has attained the status of “bullish” after a period of stagnation. For the first
time in roughly two years, the oil service sector can be proud of the growth and projections
ahead of it. Oil and gas, particular in U.S. markets, is set to enjoy higher growth over the next
few years as other sources around the world are being held hostage for the sake of international
negotiations, arms deals, and political control.

2. Geopolitics have created the environment in which oil prices are rising at rates faster than
before, and those rates are rising in such a fashion that expectations are now pinned at $100
per barrel for the year 2018. And there are many reasons for this. Falkland Oil and Gas Ltd.
successfully mobilized a rig spanning from West Africa to the Falkland Islands as part of a
drilling program in 2015. Russia, Turkey, and Europe are currently entangled in the Nord
Stream II debates while Chinese investors are being considered for significant stakes in
Russian strategic oil and gas fields beyond those located on the continental shelf. Mexico
opened a new round of bidding in the recent past and Brazil has issued new energy
concessions for the first time since 2008 with oil and gas licensing having taken place in May of
2015, an auction which embodies the new production-sharing agreements settled the Brazilian
energy sector and the financing from Petrobras.

3. •In addition to production, the transportation of crude oil, petroleum products, and natural gas
remains paramount information for all oil-producing nations. Transit routes are now indispensable
lifelines and the shifting demand for oil and gas means increased growth for future investors. That
being said, helping the anticipated growth is the fact that the energy market received a low S&P
500 weight coupled with high short-interest which is now indicative of the fact that the supply and
demand for all oil based services is no longer balanced, a claim substantiated by the low price to
tangible book value for oil services and the mid-cycle earnings. It is anticipated that as earnings
bottom for the beginning of 2016, investors will start to focus on the full-scale upside, again,
something substantiated by the low price to tangible book value for oil services and the mid-cycle
earnings.
•Oil rig forecasts have indicated that the U.S. onshore market is responding to the higher prices of
oil in a very early cycle fashion. The reason for this is that it is the one market wherein capital
formation is actually growing and where the commodity outlook demands a drilling response faster
than the current upstream industry is able to delivery with organic cash flow.
•The distress currently felt in waves across the oil and gas market is a blessing in disguise,
something which will translate directly into accelerate recovery as soon as demand increases,
something that geopolitics dictates will happen within the next two years. With tighter supply and
aging equipment among HHP, contractors are going to be called in to replace outdated equipment
with new builds. This projection will accompany the timeline of higher demand, and demand for
balance for HHP in particular.
•Offshore driller stocks are set to benefit from the increasing fund slows into the energy sector,
more than other improvements in the fundamentals of the industry. Because of the sheer size of
the oversupply within the offshore rig market at present, in tandem with the reduction in stacking
costs, this segment market is not set to show improvement until the year 2018 after which the
industry will continue to earn its projected growth rates.