Scepter Holdings Inc. (BRZL)

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BRZL Acquisition Trends

This industry is constantly evolving and leaving many inflexible companies stagnant.One of the major trends is the shift from a natural gas asset base to a crude oil base. The Company is almost 100% oil asset based and will continue to focus on oil assets in the near future.

We continue to see market consolidation as economies of scale becomes more important with large discoveries of oil and gas reserves dwindling in the United States. This phenomenon is more relevant to the major oil companies rather to small independents like us. We still see plenty of opportunities to acquire significant assets often with three to four fold valuation increases with appropriate capital expenditure.

As many large independent and major oil companies move towards the offshore Gulf of Mexico for acquisition and development, this creates an excellent environment for acquisition of their “non-strategic assets” remaining in the onshore Gulf Coast region.