Arête intends to coordinate and act as financial intermediary for traditional oil and gas ventures as well as projects utilizing alternative and renewable energy technologies. Because the dynamics of the two sectors are considerably different, the Company will take a separate approach to development of alternative energy businesses.

Overcoming entry level inertia will require Arête to develop projects that can be self-funded or, with an infusion of seed capital, can leverage the energy asset with private debt instruments that can be converted in part into equity in the assets, or a pool of similar assets, once the debt is retired.

The Company chooses to stay clear of "Wildcat" exploration deals, traditional drilling funds, and projects in which the technology needed requires an investment in research and development. We will not take on infrastructure such as engineers, geologists, or drilling operations, but are looking to contract independent experts to represent us in evaluating and assembling properties and to advise us on appropriate deal and financing structure to minimize investment risk.

Arête does not intend to conduct oil and gas exploration and development other than through its investment clients, the program developers. The Company's business model is to focus on capital placement with qualified oil and gas ventures and to invest its equity generally to fund the initial launch of each project to a point where debt or convertible preferred equity can fund the balance of the project. Thereafter, the Company expects to participate with the program developers on an equal, head's up basis in which all parties carry their share of development and operational expenses.

Initially, Arête has identified overlooked and by-passed reservoirs with proven reserves requiring reworking, and in-field developmental wells, with the primary commodity being natural gas and condensates, as the primary target for investment. The Company will develop an internal management and consulting base capable of legal, accounting and administration; prospect identification, evaluation and assembly; general project management; and development of capital acquisition programs for the various investment opportunities.

Specifically, the Company will focus on developing a captive source of investment capital by pursuing private placements and potential public offerings of investment grade debt, convertible debt, and equity securities, including General and Limited Liability Partnership interests in the proposed Partnership in which Arête will serve as the Managing General Partner.