Corporate Frontier Oilfield Services

Backgrounder AN OIL & GAS SERVICES COMPANY FOSI

Data as of 09/11/2019

CLOSING SNAPSHOT (9.11)

FRONTIER OILFIELD SERVICES ANNOUNCEMENT (9.11.12) Last Trade: $ 2.05

Frontier Oilfield Services, Inc. Tenders for Subsidiary Bid x Ask: $ 1.90 x 2.05
Frontier Oilfield Services, Inc. (OTCQB: FOSI) announces that it is engaged in an
Volume: 0
exchange offering to acquire the remaining 49% of the membership interests of Frontier
Income and Growth LLC that it does not currently own. If successful the exchange will 3mo Avg. 4,995
complete the acquisition of 100% of the ownership of Frontier Income and Growth, LLC Volume:
and its operating subsidiary Trinity Disposal and Trucking, LLC. *per day, last 10 market days

SHARE STRUCTURE
Frontier recently announced the acquisition of Chico Coffman into its portfolio. Coffman is Authorized
a commercial salt water disposal company, which owns and operates (85 trucks and Shares: 100M
trailers), six salt-water permitted wells, with annual gross revenue of $40.5M, and assets Total
16,230,375
totaling $24M. This acquisition allows FOSI to continue expanding its business model, Outstanding:
rapidly grow revenue, and increase shareholder value. Combined with the acquisition of Estimated
3,038,983
Trinity Disposal and Trucking, Frontier Oilfield Services is now on a combined $50M annual Float:
revenue run rate. Warrants None

Market Cap: $38.9M

SUMMARY OVERVIEW Preferred
None
Shares:
Frontier Oilfield Services, Inc (OTCQB: FOSI) represents a ground-floor opportunity for those who may
be seeking to capitalize on the “shale” boom that is sweeping across several oil and gas producing
regions in the United States, such as the Haynesville shale in East Texas and the Barnett Shale in North
Texas. The Barnett and the Haynesville Shales are among the largest gas plays in the US, and are CORPORATE INFO
currently the primary location of Frontier’s operations. Frontier’s business model anticipates identifying,
evaluating, and acquiring compatible oilfield service companies (especially in the saltwater recovery and
disposal sector) in Texas and the contiguous states. Frontier will continue to focus their acquisition Listing: OTC QB
strategy in the Haynseville, Barnett, Eagle Ford, and Permian Basin formations.
Ticker: FOSI
As a result of breakthroughs in technology, the process by which shale oil & gas is extracted has
EDGAR Status: Fully-Reporting
resulted in a massive burden upon the E & P companies –the disposal of drilling and fracking fluids and
saltwater. As exploration and production (“E&P”) companies have drilled more wells and deployed more
hydro-fracturing to increase production, it became imperative that something be done with the flow-back Fiscal YE: Dec 31
of the drilling and fracking fluids and produced water. Consequently, a sizable increase in demand for
saltwater disposal has left a considerable gap in the oilfield service business that needs to be filled. Year of Inc: 1995

State of Inc: TX
Frontier’s primary business focus on wastewater recovery and disposal was selected due to the
relatively high margins and strong barriers to entry by potential competitors due to the limited supply of
state permitted disposal wells. This highly fragmented industry consists mostly of “mom and pop” Corporate HQ: Dallas, TX
operations with limited to no infrastructure conducive to fostering the growth required to satisfy the
needs of the major oil companies within their respective producing regions. Frontier has come to the Industry: Oil & Gas
following conclusions: Services

 Advanced technology of hydro-fracturing has increased the demand for saltwater recovery and
disposal.
 Compliance, safety, and environmental practices of “mom and pop” operations are not sufficient
for major E&P companies, who shoulder the liability for disposal of saltwater and therefore must
seek reliable companies with proven sophistication and logistics.
 A roll-up strategy through aggressive acquisitions of “mom and pop” operations and organic
growth of existing operations could substantially increase the revenue and assets of Frontier and

Disclaimer: This report may include forward-looking statements that involve a number of risks and uncertainties. Actual results could differ
materially from those anticipated, therefore such projected events and anticipated results are not warranties or guaranties that such events will
occur or that the Company will achieve such results. This corporate profile is a paid advertisement and is provided for information purposes only; it
should not be used as the basis for any investment decision.  Investors are strongly encouraged to do their own research, and to view all of
Frontier Oilfield Services financial filings in the EDGAR database, controlled by the SEC, at www.sec.gov. Do not rely exclusively on this report in
a decision to purchase shares of FOSI stock. More than one writer/analyst contracted by FOSI may have contributed to this report. While efforts
were made to remain objective and factual, this report should be considered a buy-side, or client-side stock report.
 Data as of 09/11/2019

Frontier Oilfield Services, Inc.

3030 LBJ Freeway, Suite 1320
Dallas, TX 75234

www. frontierosi.com

Tim P. Burroughs
President & CEO
Tel: 972-243-2610

Investor Relations Contact:

Visit us on Facebook
Dick O’ Donnell / EVP

TRADING DATA
12-Mo. High: 4.50 (July - 20)

12-Mo. Low: .55 (May - 11)

3-Mo. High: 4.50 (July -20)

Avg. 10-Day Volume: 7,000

Last 30 market days

Avg. Daily Price: $1.90

Last 30 market days
Avg. Volume 3-Mo: 6,341

1 1 YEAR % Change (TTM):

Auguest 2012 I YR - PRICE & VOLUME CHART

37,100 total shares traded

July 2012
160,700 total shares traded

MARKET MAKERS
SPIN AUTO

NITE HDSN

ETMM BMAS

Market Makers listed as trading

shares of FOSI stock in 2012

Frontier Oilfield Services — Corporate Backgrounder (2)

 Data as of 09/11/2019

Frontier Overview

The services offered by the Company are necessary and essential to the large exploration and production
companies already operating in Frontier’s planned service areas. Prior to their recent financing, Frontier
managed the operations of Trinity Disposal and Trucking, LLC (TDT), a 12 year old saltwater and drilling
fluids transportation and disposal company with eight disposal wells, more than 20 trucks, and access to
approximately 4,000 oil/gas wells operating within the Company’s target area of operations.

 By completing the acquisition of Chico Coffman, Frontier now has a solid footprint in the Barnett
Shale. This new expansion covers over 17 counties, with over 85 trucks and trailers in operations and
multiple saltwater disposal wells.
 Having made the acquisition, Frontier will seek to expand Trinity’s operations, as 100% of their cur-
rent capacity is being absorbed by major customers like Devon Energy, Wagner & Brown, Ltd., Matador
Oil, NFR Energy, Vernon Faulkner, and XTO Energy.
 Trinity Disposal and Trucking currently targets customers which are within 15 miles of one of its dis-
posal wells due to the favorable transportation economics of such proximity. Currently, there are ap-
proximately 4,000 producing wells that are within a 15 mile radius of Trinity’s disposal wells, and as
stated above, Frontier believes that number will grow.

Frontier has recently completed an investment agreement with Lonestar Income and Growth, LLC. Lonestar,
an unrelated third party, will receive 2,750,000 shares of Frontier’s 2011 Series A 8% preferred stock for the
sum of $5,500,000. As a result of Frontier using the proceeds of the stock purchase to acquire a majority
(51%) interest in Frontier Income and Growth, LLC., (FIG), Trinity Disposal and Trucking’s operations are
now majority owned by Frontier Oilfield Services, Inc.

Frontier also anticipates being able to expand its “roustabout” services which
are an additional profit center and a complement to the wastewater recovery and
disposal business.

INDUSTRY OVERVIEW

Hydraulic-fracturing, or “fracking,” has literally changed the landscape of oil & gas in America.  Once deemed
unrecoverable, advances in technology have opened the door to extracting massive deposits of oil and gas
buried deep beneath the Earth’s surface.  Many experts believe that domestic formations may actually sur-
pass that of anywhere in the world, including the Middle East.

As oil and gas exploration and production achieves unprecedented momentum, an often overlooked aspect
of this process is the servicing of that industry.  Previously dominated by “mom-and-pop” operators that con-
duct business out of the back of their pockets with little sophistication, oilfield service companies are experi-
encing growth that often exceeds their limited capacity.  

One key component of the oilfield service industry is saltwater disposal, commonly referred to as SWD.  The
saltwater disposal industry could present a tremendous opportunity for investors in small-cap companies.
Operators are responsible for the disposal of flowback water, produced water and hydraulic fracturing fluid
(“frac fluid”) – creating vast potential liabilities for the fast-moving “majors” in the industry.  In layman terms,
the saltwater produced from the drilling and expansion of wells has to go somewhere.  If it is improperly dis-
posed of, the responsibility lies upon the producer of said water.  

As consolidation has hit every other business since the beginning of industrialization in America, expect the
same in the oilfield service space – it is quite attractive fundamentally with high margins and asset coverage.

Proper safety, financial, and logistical protocols are found to be severely lacking in small saltwater disposal
well companies, opening the doors for enterprising entities like Frontier Oilfield Services, Inc. who wish to
build a scalable and intrinsically valuable enterprise with huge margins.  Minimal risk combined with limited
competition means that shareholders of some companies will reap the rewards of this industry, which is soon
to be on every investor’s radar as we decrease our dependence on foreign oil through the development of
shale formations throughout the United States.  

Frontier Oilfield Services — Corporate Backgrounder (3)

 Data as of 09/11/2019

VALUE PROPOSITION AND COMPETITIVE ADVANTAGE

 Advanced technology of hydro-fracturing has increased the demand for saltwater recovery and disposal
 Compliance, safety, and environmental practices of “mom and pop” operations are not sufficient for major
E&P companies, who shoulder the liability for disposal of saltwater and therefore must seek reliable compa-
nies with proven sophistication and logistics
 A roll-up strategy through aggressive acquisitions of “mom and pop” Oilfield services operations with or-
ganic growth and improved business processes of existing operations could substantially increase the rev-
enue and assets of Frontier and therefore provide the potential for Frontier shareholders for increased value
and share appreciation
 Frontier plans to position itself as one of the premier companies to meet the saltwater disposal needs of oil
and gas producers and operators in the Haynesville and Barnett Shale, and expand to other shale plays to
increase market share and geographic diversity
 Frontier has put into place experienced management with a successful track record of achieving market
success in both E&P operations and oilfield services
 Frontier has completed two key milestones in their growth model through the acquisition of Trinity Disposal
and Trucking and Chico Coffman Trucking.
 Frontier will seek to expand Trinity’s and Coffman’s operations, as 100% of their current capacity is being
absorbed by major customers like Devon Energy, GMX Resources, Wagner & Brown, Ltd., Matador Oil,
NFR, Vernon Faulkner, and XTO Energy

Frontier Oilfield Services is on a fast track roll-up model to acquire smaller

saltwater disposal service companies in Texas, and expand into other shale plays
while adding additional high-margin services for the benefit of FOSI shareholders

DEMAND DRIVERS

Oil is a critical force powering business, manufacturing, and the transportation of goods and services
to serve the global economy.

 Oil is regarded by some as being the current lifeblood of the United States’ economy.  Presently,
it supplies more than 40 percent of total energy demands and more than 98 percent of the fuel
used in cars and trucks
 Hydraulic fracturing (“fracking”) is exponentially increasing across all the shale plays, which will
place a burden upon the oilfield service industry
 Saltwater well permits are limited and companies like Frontier Oilfield Services that are properly
positioned are expected to thrive in our economy
 At the Federal level, more attention is being paid to hydraulic fracturing and produced water issues

KEY INVESTMENT DRIVERS

 Seasoned management team with exceptional operational skills, experience, and industry partners.
 Attractive industry environment for asset consolidation in Oilfield Services like Saltwater Disposal
 Focused on long-lived, low risk, and high yield revenue model
 Strategy to protect downside risk with cash flow from consistent oil well water disposal services
 Active development and exploitation upside in our most important industry
 Strong barriers to entry for any competition
 An established rollup and growth strategy

Frontier Oilfield Services — Corporate Backgrounder (4)

 Data as of 09/11/2019

COMPANY PRESS RELEASES

SEPTEMBER 11, 2012

Frontier Oilfield Services, Inc. Tenders for Subsidiary

Frontier Oilfield Services, Inc. announces that it is engaged in an exchange offering to acquire the remaining 49% of the
membership interests of Frontier Income and Growth LLC that it does not currently own. If successful the exchange will
complete the acquisition of 100% of the ownership of Frontier Income and Growth, LLC and its operating subsidiary Trinity
Disposal and Trucking, LLC. If all the current membership interest holders of Frontier Income and Growth, LLC agree to
exchange their 1,122 interests a total of 1,870,374 shares of Frontier's restricted common stock will be issued

JULY 26 , 2012
Frontier Oilfield Services Completes Transaction

Tim P Burroughs, President and CEO of Frontier Oilfield Services, Inc (OTCQB: FOSI) announced today that the Company
has completed the acquisition of Chico Coffman Tank Trucks, Inc (“Coffman”), including its wholly owned subsidiary, Coffman
Disposal, LLC, which had audited gross revenue in 2011 of $40,500,000 and net income before interest, taxes, depreciation
and amortization of $3,263,000.

JULY 10 , 2012
Frontier Oilfield Services announces another acquisition

Frontier Oilfield Services, Inc (FOSI) announces its intention to acquire Chico Coffman Tank Trucks, Inc ("Coffman"),
including its wholly owned subsidiary, Coffman Disposal, LLC for the sum of $17,408,348.00 subject to certain negative
and positive adjustments based upon the amount, at the time of closing, of Coffman's indebtedness, seller's expenses and
EBITA adjustments.

JULY 5 , 2012
Frontier Oilfield Services, Inc.'s Subsidiary Announces Record Results

Frontier Oilfield Services, Inc. announces the record results of Trinity Disposal and Trucking, LLC (TDT), its majority owned
subsidiary.  Income from operations during the production month of May 2012 reached $1,058,956.00 generating a
corresponding EBITDA of $229,391.00.

JUNE 07, 2012

Frontier Oilfield Services, Inc. Completes Key Milestone for Rollup in Saltwater Disposal Business

Frontier Oilfield Services, Inc. (FOSI) announced today that Lonestar Income and Growth, LLC -- an unrelated third party
investor -- has completed the acquisition of Frontier Oilfield Services, Inc 2011 Series "A" 8% Preferred Stock. This completion
will supply sufficient capital for Frontier Oilfield Services, Inc. to purchase a majority interest in Frontier Income and Growth,
LLC and its wholly owned subsidiary, Trinity Disposal and Trucking, LLC, a saltwater transportation and disposal company in
East Texas.

JUNE 06, 2012

Unregistered Sale of Equity Securities, Financial Statements (8K Filing)

On September 2, 2011 Frontier Oilfield Services, Inc. ("FOSI"), under its former name, TBX Resources, Inc. entered into an
Investment Agreement with LoneStar Income and Growth, LLC, a Texas limited liability company, an unrelated third party. The
Investment Agreement provided that LoneStar would acquire up to 2,750,000 shares of TBX's 2011 Series A 8% Preferred
Stock (the "Stock") for the sum of $5,500,000 contingent upon TBX using the proceeds of the Stock to acquire a majority 51%
membership interest in Frontier Income and Growth, LLC ("Frontier"), a salt water transportation and disposal company.
Effective June 4, 2012, LoneStar has completed the purchase of $5,000,000 of the Stock and FOSI has completed the
acquisition of 51% of Frontier. We intend to file pro forma financials showing the financial effect of the acquisition in an
amended 8-K filing within 60days from the date hereof.

Frontier Oilfield Services — Corporate Backgrounder (5)

 Data as of 09/11/2019

KEY EXEUCTIVE MANAGEMENT & DIRECTOR BIOS

Tim P. Burroughs
President / Chief Executive Officer

Mr. Tim P. Burroughs, age 52, has over twenty years of experience in financing and operating oil and gas drilling and development
projects with Dallas/Ft. Worth based energy companies. Having studied business administration at Texas Christian University in Fort
Worth, Mr. Burroughs developed and implemented a low risk start-up plan for operating oil and gas projects. Since the inception of this
plan, Mr. Burroughs has formed joint ventures to own and/or operate approximately 500+ wells. During Mr. Burroughs leadership and
the relationships that were forged; the company was successful in developing and drilling in the Barnett Shale, East Texas, South
Texas and the Anadarko Basin in Oklahoma. By establishing partnerships with key Operators such as Devon Energy Corporation,
ConocoPhillips, Chesapeake, XTO, EnCana, St. Mary’s Land and Exploration, and others, Mr. Burroughs continues to strive for
excellence and growth in future projects.

Kenneth Conte
Vice President & CFO

Mr. Kenneth K. Conte, age 53, was appointed Vice President and CFO of Frontier Oilfield Services, Inc. on January 1, 2012. From
June 1, 2010 until November 2011 Conte served as Executive Vice President and CFO of NYTEX Energy Holdings, Inc. Dallas, TX.
For 5 years prior to joining NYTEX, Conte served as Managing Director and Head of Mergers & Acquisitions for National Securities
Corporation. From 1998 thru 2005, Mr. Conte served as CEO or CFO of Windsor Technology, LLC, and Argilus Investment Banking.
In addition, Mr. Conte served as Senior Vice President — Investment Banking for McDonald Investments, Inc., in Cleveland, Ohio. He
has also held management positions at the Corporate Banking and Finance Group for Key Bank in Rochester, at Shawmut’s LBO
fund, and at The Chase Manhattan Bank. Conte obtained his MBA in Finance at the William E. Simon Graduate School of Business
Administration at the University of Rochester; and a BBA in Accounting from Niagara University.

C. David York
President of Trinity Disposal & Trucking LLC

Mr. C. David York, age 55, has over thirty-eight years of oilfield service experience beginning when he was 17 years old working in
South Texas on drilling rigs for ARCO (Atlantic Richfield). He continued in the oil and gas industry with such companies as Poole
International, Geophysical Logging and Explorations, Inc. and Hilliard Drilling Company. Mr.York oversaw the East Texas/Louisiana
operations and the drilling/completing of over 42 wells in the Barnett Shale (2004-2008) for companies such as Devon Energy, Conoco
Phillips, Encana, Trio Operating, Williams, XTO Energy (now Exxon-Mobil), Braden Exploration, and Burlington Resources. Mr. York
oversees day to day operations for Trinity Disposal & Trucking, LLC. He studied business administration at the University of Texas at
Edinburg.

Sherri K. Cecotti
Secretary/Treasurer & Controller

Ms. Cecotti, age 47, has over twenty-five years experience in operational and administrative management. Upon joining Frontier
Oilfield Services, Inc., as an officer in 2002, Ms. Cecotti’s primary focus has been on financial management and banking, required
public and tax filings, and risk management. Ms. Cecotti has also managed all areas of Human Resources and benefits. After
studying business administration at West Texas A&M University, Ms. Cecotti was employed at Marshall Field & Company
(Target/Dayton Hudson Corporation), CompuCom Systems Inc., and Home Depot Corporation before joining our Company.

Bernard O’Donnell
Director

Mr. Bernard R. “Dick” O’Donnell, age 68, was the President of Euro American Capital Corp, an affiliated brokerage from 2005 thru
2010. Mr. O’Donnell is also the EVP for Frontier Oilfield Services, Inc and also handles Investor Relations. He has over 33 years of
diversified experience in financial sales, investment banking and brokerage operations. Mr. O’Donnell has a BS degree in Business
and Industrial Management and a Masters in Business Administration from San Jose State University.

Frontier Oilfield Services — Corporate Backgrounder (6)

 Data as of 09/11/2019

REASONS TO CONSIDER FOSI

 As an independent saltwater disposal company, Frontier Oilfield Services is in an ideal position to

capitalize on rising growth of domestic oil production and the use of saltwater Fracking.

 The management team continues to develop and fund successful ventures for individual investor
partners, with whom the company maintains excellent long-term relationships

 Largely unknown at this point by the financial markets, FOSI has potential to be a major opportunity in
Oilfield Services stocks—an area of the stock market that has proven to be recession proof time after
time
Saltwater Disposal and Transportation – They have the infrastructure and logistics in place to acquire less
sophisticated companies and integrate them into Frontier Oilfield Services. Expanding there footprint while
consolidating operations creates a compelling financial opportunity.

Based on EIA long-term forecasts,

GROWING DEMAND -the demand for domestic oil production continues to grow and is expected to continue.
The demand
Wastewater Disposal for domestic oil is even stronger as people want to reduce the dependency on foreign oil.
and Recovery Oil
fracking is becoming the most important and most used method today across every oil field.

The oilfield saltwater disposal (“SWD”) business includes three basic components:

SALTWATER DISPOSAL AND RECOVERY

 Transporting wastewater, which is a byproduct of drilling and ongoing production, from an oil/gas well to a disposal site for a fee.
 Disposing of the water in a state permitted disposal well for a fee.  Disposal water is continually generated in both the well drilling
and completion phase (flowback water) and while the well is producing oil/gas (produced water).
 Skim oil is the residue which is salvaged and sold from the transported wastewater.

During the completion phase of an oil/gas well, fresh water is used to fracture the shale formation.   A typical multi-stage frac process uses at
least 100,000 barrels of fresh water.  When this water “flows back” it is salty and must be transported away from the drilling site and
disposed of in a permitted disposal well.  The need for disposal of flow-back water occurs only during the drilling of a new well, however
flow-back water disposal is often the second-largest expense of drilling a new well and provides Frontier with higher margins.

Water that comes to the surface during the normal oil or gas production process is naturally occurring briny water that is generated from
deep within the earth along with the oil and gas.  The need to dispose of “produced water” is on-going and continues throughout the life of
the oil/gas well.  Servicing this disposal need produces recurring revenues, frequently on a daily basis. Produced water disposal is usually
the largest lease operating expense of a producing well.

In addition to receiving fees for transporting and disposing of salt water, the company will also generate revenue from the sale of “skim” oil.  
This oil comes mixed in with the salt water that the company transports and disposes.   The company salvages the oil prior to pumping the
water into one of the disposal wells. 

How many of these wells are in Texas?

Texas is the nation’s number one oil and gas producer with more than 216,000 active oil and gas wells statewide. Injection and saltwater
disposal wells are also located statewide to safely dispose of the produced water and frac fluid from these oil and gas wells. Texas has more
than 50,000 permitted oil and gas injection and disposal wells.

Frontier Oilfield Services — Corporate Backgrounder (7)

 Data as of 09/11/2019

COMBINED FIGURES (FOSI & Coffman)

TOTAL ASSETS 30,244,200

Total Liabilities (15,489,851)

STOCK SYMBOL
OTC QB: FOSI

Net Revenue for Year 25,324,072

Gross EBITDA 2,185,155

Overhead 654,572

Net EBITDA for Year 1,530,583

Net EBITDA per Share .09

Data based on figures provided by FOSI - (Unaudited) 6.30.12

Industry Outlook for the Oilfield Services Industry

The industry outlook for Oilfield Service and saltwater recovery and disposal remains to be a dominant player
for many years to come. There are compelling opportunities today for private equity to consider in the oilfield
services industry.

Oil and natural gas drive the world’s industrial and economic growth. The industry is broad with operations focusing on exploring,
extracting, refining, and marketing these resources. Billions of barrels of oil and cubic feet of natural gas are produced and consumed
every year and the world’s demand for energy will increase by 50 percent in 20 years and could double by 2050

Increasingly our oil and gas supplies are coming from unconventional resources, such as heavy oil, natural gas from tight sands, and
oil and gas from shale formations. Our ability to extract and utilize these resources results from years of development of new tech-
nologies and methods such as hydraulic fracturing and horizontal drilling. Developing these resources has also presented some envi-
ronmental challenges.

*Industry trends are creating compelling opportunities in the oilfield services industry sector.

Frontier Oilfield Services — Corporate Backgrounder (8)