posted
Dang DMn, you must really want me out you double posted on me. LOL. Just playin... We will have our day. I just dont know what day that is yet. TMAN...
-------------------- In the end, trust only yourself when trading stocks.
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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION OVERVIEW
You should read the following discussion and analysis in conjunction with the Consolidated Financial Statements in Form 10-KSB, Form 10-QSB and Notes thereto, and the other financial data appearing elsewhere in this Form 10QSB Report.
The information set forth in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among others (i) expected changes in the Company's revenues and profitability, (ii) prospective business opportunities and (iii) the Company's strategy for financing its business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as "believes", "anticipates", "intends" or "expects". These forward-looking statements relate to the plans, objectives and expectations of the Company for future operations. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this report should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved.
In light of these risks and uncertainties, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The foregoing review of important factors should not be construed as exhaustive. The Company undertakes no obligation to release publicly the results of any future revisions it may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The Company is currently focused on oil and gas activities in the following areas: i) Development of our domestic interests acquired initially in Wyoming for production of oil and primarily natural gas, and ii) pursuit of and potential completion of projects overseas in Central Asian and European countries; and further, the Company has been making presentations to asset-based lenders and other financial institutions for the purpose of expanding and supporting our growth potential by development of our oil and gas operations in 2006 with a goal to increase sales output of our Firecreek unit.
One of our ways our plans for growth could be altered if current opportunities now available become unavailable:
The Company would need to identify, locate, or address replacing current potential acquisition or strategic alliances with new prospects or initiate other existing available projects that may have been planned for later stages of growth and the Company may therefore not be ready to activate. This process can place a strain on the Company. New acquisitions, business opportunities, and alliances, take time for review, analysis, inspections and negotiations. The time taken in the review activities, is an unknown factor, including the business structuring of the project and related specific due diligence factors.
GENERAL
The Company historically derived its revenues primarily from retail sales of oil and gas field inventory equipment, service, and supply items primarily in the southern Arkansas area, from acquired interests owned in revenue producing oil wells, leases, and equipment located in Olney, Young County, Texas, and in December 2003, from our acquisition of commercial and private leisure marine vessel sales brokerage and charter business,
International Yacht Sales Group, Ltd. Of Great Britain. The Company disposed of the first two segments of operations in 2003 and disposed of the third segment in 2005. We accounted for the segments as discontinued operations in the consolidated statements of operations for the related fiscal year.
Effective July 1, 2004 we acquired Firecreek Petroleum, Inc., and its subsidiary Firecreek Romania, SRL. Firecreek is an international oil exploration and development company specializing in the niche market of rehabilitation and enhancement of existing oilfields through modern management and state of the art technological applications. Management individually has many years of experience and has one or more collectively been involved in oil and gas operations worldwide. Throughout 204 and 2005, through the Firecreek Petroleum unit, we have i) developed relationships and prepared for potential acquisitions in Romania and Libya, and ii) through our alliance with Sahara, we have developed additional potential projects for acquisition that are located in Russia, Romania, Kazakhstan, Ukraine, and Turkey (see additional information in section on "The Business" in Form 10-KSB for the fiscal year ended 2005 filed on April 14, 2006, and incorporated herein by reference).
Effective November 15, 2005, Firecreek Petroleum purchased a 50% undivided interest in leases, wells, equipment, gas and to a lesser extent oil reserves, and other rights, located in Sweetwater County, Wyoming. The project is listed under the prospect name "Ten Mile Draw" ("TMD"). We have commenced with gas production and are contemplating additional drilling and workover programs. For further information see the section on "The Business" in Form 10-KSB for the fiscal year ended 2005 filed on April 14, 2006, and incorporated herein by reference.
The Company expects to incur an increase in operating expenses during the next year from commencing the described activities related to its plans for Firecreek Petroleum oil and gas operations. The amount of net losses and the time required for the Company to reach and maintain profitability are uncertain at this time. There is a likelihood that the Company will encounter difficulties and delays encountered with business subsidiary operations, including, but not limited to uncertainty as to development and the time and timing required for the Company's plans to be fully implemented, governmental regulatory responses to the Company's plans, fluctuating markets and corresponding spikes, or dips in our products' demand, currency exchange rates between countries, acquisition and development pricing, related costs, expenses, offsets, increases and adjustments. There can be no assurance that the Company will ever generate significant revenues or achieve profitability at all or on any substantial basis.
On December 31, 2003 through our exchange merger acquisition with International Group Holdings, Ltd., as amended, a commercial and private leisure marine vessel sales brokerage and charter business, International Yacht Sales Group, Ltd. of Great Britain ("IYSG") and all of its divisions, as a wholly owned subsidiary of the Company. Divisions of IYSG include but are not limited to International Yacht Sales Brokerage and Charter ("IYSBC"), Emedia8 ("E8"), International Marine Services ("IMS"), International World Realty ("IWR"), International Boat Sales ("IBS"), and International Commercial Shipping ("ICS").
At December 1, 2004, management elected to impair the book value of its long-lived assets since estimates of future cash flows attributable to these assets could not be assured. Consequently, management recognized $1,344,617 impairment expense in the consolidated statement of operations.
On December 31, 2005 the majority of the Board of Directors of the Company elected to dispose of its wholly owned subsidiary, International Yacht Sales Group, Ltd. (IYSG) of United Kingdom. The results of operations for these segments are included in "loss from discontinued operations" in the consolidated statements of operations for fiscal 2005.
General Statement: Factors that may affect future results:
With the exception of historical information, the matters discussed in Management's Discussion and Analysis of Financial Condition and Results of Operations contain forward looking statements under the 1995 Private Securities Litigation Reform Act that involve various risks and uncertainties. Typically, these statements are indicated by words such as "anticipates", "expects", "believes", "plans", "could", and similar words and phrases. Factors that could cause the company's actual results to differ materially from management's projections, forecasts, estimates and expectations include but are not limited to the following:
~ Inability of the company to secure additional financing.
~ Unexpected economic changes in the United States.
~ The imposition of new restrictions or regulations by government agencies that affect the Company's business activities.
To the extent possible, the following discussion will highlight the Company's business activities for the quarters ended March 31, 2006 and March 31, 2005.
I. RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2006 VS. THREE MONTHS ENDED MARCH 31, 2005.
There was $7,980 in revenues generated from the Company's gas lease production activities ramping up in the last two weeks in March 2006 for Q1 2006 compared to no revenues in Q1 2005. Revenues commenced mid March 2006 from the first of two workover wells completed and on production in the Ten Mile Draw project in southern Wyoming. Operating costs of $ 6,647 produced a net profit of $1,333. Of the operating costs, $4,849.95 thereof is a non recurring expense.
General and administrative expense for Q1 2006 increased to $466,683 compared to $339,907 in Q1 2005, an increase of 27%. Most of the increase was due to travel and research into possible new business ventures.
--------------- ------------- Total $466,683 $339,907 =============== =============
Consulting fees of $62,625 were incurred during investigations into acquiring profitable business enterprises.
Professional fees of $100,910 were incurred in regards to legal costs, accounting, securing financing, and the acquisition of leads and contacts with regard to possible new business ventures.
Payroll and taxes of $108,302 was used for Firecreek Petroleum operations.
Rent and Utilities of $25,010 was used for office lease expenses in Fort Worth, Texas for the Firecreek Petroleum operations.
Travel costs of $31,295 were in connection with signing of agreements, negotiating contracts and arranging potential financing for potential projects in Wyoming, other areas domestically, and in Ukraine, and other overseas countries.
After deducting general and administrative costs, the Company experienced a loss from operations of $465,350 for the three months ended March 31, 2006 compared to an operating loss of $339,907 for the same period last year.
Interest expense increased in the three months ended March 31, 2006 to $303,370 compared to $17,161 for the same period last year. Most of the increases in interest is due to the increased borrowing in the last quarter of 2005.
Consulting and professional fees increased approximately $75,186 in Q1 2006 compared to Q1 2005.
Net loss for Q1 2006 was $768,720, or $0.04 per share compared to a loss of $357,068, or $0.00 per share for Q1 2005.
DISCUSSION OF FINANCIAL CONDITION: LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2006 cash on hand was $1,541 as compared with $149,962 at December 31, 2005. During the period the Company paid $5,555 to shareholders.
At March 31, 2006, the Company had working capital deficit of $3,570,751 compared to a working capital deficit of $3,357,901 at December 31, 2005. Working capital decreased mainly as a result of operating losses.
Total assets at March 31, 2006 were $696,481 as compared to $850,580 at December 31, 2005.
The Company's total stockholders' deficit decreased $1,223,707 from December 31, 2005 to $3,224,903 at March 31, 2006. Stockholders' equity decreased by $768,720 from operating losses in Q1 2006. In addition, the Company issued 13,009,850 shares of common stock valued at $348,020 as payment against a line of credit and preferred C stock was converted to 20,250,000 shares of common stock.
posted
more news out... but i dunno why because it simply states the same thing as yesterday. but i'll post it.......
EGPI/Firecreek Inc reports second gas well on-line and producing in Wyoming
May 17, 2006 (M2 EQUITYBITES via COMTEX) -- Oil and gas company EGPI/Firecreek Inc (OTCBB:EFCR) said on 16 May that its second gas well 7-16 located in the Ten Mile Draw gas field in Wyoming is on-line and producing. This means that both wells in the Ten Mile Draw project are now up and producing.
The move marks the first time that EGPI/Firecreek has had multiple wells producing natural gas at the same time, according to the company's chairman and chief financial officer, Dennis R. Alexander.
-------------------- NDOL(well before the crash)FPPL BLDV CSHD WWEN?
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When the turbin tops deside to run it to 75 or 80 bucks...... which won't be long from now in my opinion.... it will run.. I also think this B.S. with Libia is giving the market a false sense security...
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posted
I thought it would be prepping for a run, but I thought it would have run by now???
Oh well, I'm staying in. If it drops below .02 I'll reconsider. Either buy more and wait, or sell all for a loss and try to make it up somewhere else.
quote:Originally posted by tmanfromtexas: With Nite sucking the shares up what do you think the reason is BuyTex? Prepping for a run or just trying to kill the company? TMAN...
posted
EZ, i came thru saying i had a bad feeling and that was at .025.. just be careful.. look at their financials and the debt they have with all these strange foreign places.. the investor debt ratio is thru the roof.. management is resigning.. hopefully not to escape..
i dont know.. i hope im wrong, i had my hunch before.. just tread lightly EZ.. i have the same opinion with papo.. financials were a joke.. and the bottom dropped out..btw.. I lost money on both stocks.. when i sold.. but would of lost a lot more holding
posted
Thanks Cactus. I wish I had listened to you then. I am starting to think this had its run already. lol. Lets see what tomorrow holds. If its anything like today, tomorrow can hold this because I wont be. TMAN...
-------------------- In the end, trust only yourself when trading stocks.
IP: Logged |
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