The International Energy Outlook 2006 (Energy Information Administration, U.S. Department of Energy) projects strong growth for worldwide energy demand over the next 25 years. Despite the recent increase in world oil prices, overall economic growth is expected to increase at an annual rate of 3.8 percent over this period.

To fuel this growth, world oil consumption is expected to increase from 80 million barrels per day (bpd) in 2003 to 98 million bpd in 2015 and to 118 million bpd in 2030. The annual consumption of natural gas is expected to increase from 95 tcf to 182 tcf over the same time period.

It is believed demand for oilfield services is a function of oil and gas companies\' willingness to make operating and capital expenditures to explore for, develop and produce hydrocarbons, which in turn is affected by current and expected levels of oil and gas prices.

As oil and gas prices have rebounded beginning in early 1999, worldwide spending on upstream oilfield services and equipment, according to Spears & Associates, Inc.\'s Oilfield Market Report 2005, has increased from $74 billion in 1999 to an expected $164 billion in 2006.

Increased expenditures for exploration and production activities typically are due to the deployment of additional drilling and well servicing rigs. As such, the number of active rigs, or rig count, serves as an indicator of demand for oilfield services. According to Baker Hughes, U.S. and worldwide rig counts at April 2006 were 1,597 and 2,707, respectively, an increase of 62% and 42% from three years ago. During 2006, Spears expects U.S. rig counts to increase by 15%.

The Company is not presently engaged in, and it will not engage in, any substantive commercial business for an indefinite period of time following the offering.

Subject to the requirement that the Company’s business combination must be with a target acquisition having a fair market value that is at least 80% of the net assets held in trust at the time of such acquisition, there are no limitations on the type of oilfield service investments the Company can make or the percentage of its total assets that may be invested in any one investment.

Accordingly, other than the requirement that the business combination must be with a target acquisition having a fair market value that is at least 80% of the Company’s net assets held in trust at the time of such acquisition, its investment policies may be changed from time to time at the discretion of the board of directors, without a vote of the stockholders.

Additionally, no limits have been set on the concentration of investments (including investments in securities of entities that own or finance oilfield services activities) in any location or product type.

The Company estimates that the net proceeds from the sale of the units in the offering and the sale of founder securities in the private placement will be approximately $99.0 million (or $113.3 million if the underwriters\' over-allotment option is exercised in full).