ALTEX INDUSTRIES is a holding company. Through their operating subsidiary, they own interests, including working interests, in productive onshore oil and gas properties, buy and sell producing oil and gas properties, and, to a lesser extent, participate in the drilling of exploratory and development wells, and in recompletions of existing wells. They operate only one producing well and one field currently being abandoned. All other interests are in properties operated by others.

Unless and until the Company invests a substantial portion of its cash balances in interests in producing oil and gas wells or in one or more other ventures that produce revenue and net income, the Company is likely to experience net losses.