It’s been a very long time since my last posting, so I apologize for the lack of blogging, but we have been extremely busy organizing the operations of our newly acquired assets in Galveston Bay, as well as launching our investor relations program and engaging in additional fund raising activities. Donna Parsons has also been very busy spear heading our Canadian operations, so I thought I would restart my blogging efforts with an overview of her tremendous progress in Newfoundland.

Drilling Activity: The Company has continued to work with all levels of government to obtain the permitting for spudding “Glori #1″ in November 2007, Tekoil’s first exploration well in western Newfoundland. This well will be an onshore-to-offshore well in offshore lease EL-1069, thus will fall under both the Department of Natural Resources (DNR), as well as the Canada-Newfoundland & Labrador Offshore Petroleum Board (C-NLOPB). Under the terms of the farmin Agreement with Ptarmigan Resources, Tekoil will earn a 33% working interest in the block for drilling Glori #1.

To-date, we have submitted our environmental assessment (EA) for both the onshore and offshore areas. The onshore area has been released from further environmental assessment, which allows Tekoil to move forward with site preparatory work in Little Port. Local contractor Roger Sheppard was awarded the contract on September 7th. Site preparations are expected to begin in October 2007. In order to keep local communities aware of Tekoil’s intentions, there will be a public consultation on September 20, 2007, at the Town Hall in Lark Harbor. The offshore EA is still under review by the C-NLOPB.

Tekoil has received its Operating License for the intended drill program from the C-NLOPB and its Exploration License from the DNR. These licenses are the first steps in obtaining final approval for the drilling of Tekoil’s first well in western Newfoundland. In order to meet the requirements set forth by both boards Tekoil has engaged the services of Bissett Resource Consultants, an engineering firm out of Calgary, Alberta. Bissett will be designing and implementing the engineering programs for Glori #1, and will be on site for the duration of the program. With their knowledge and expertise in the oil and gas industry Tekoil expects to see a well engineered and a well executed program. All necessary documentation in order to obtain drilling approvals will be submitted to the appropriate regulators by mid September.

Tekoil has also contracted to purchase a new rig from western Canada. It is a telescopic double capable of drilling up to 3400 meters. Advance Drilling will be providing the experienced drillers and tool-pusher’s for the program, most other hires will come from the local area residents, subject to qualifications and experience. The rig is expected to arrive on the site in late October. Once finished in Newfoundland, the company plans to mobilize the rig to Galveston Bay, Texas in preparation for the completion of our fully integrated field study and the drilling of our proved undeveloped reserves (PUD’s), scheduled to begin during the first quarter of 2008.

Seismic Activity: Having made the initial application on October 13, 2005, Tekoil has finally received its Exploration License from the DNR, and has also received clearance from further EA from both the DNR and the C-NLOPB. We intend to execute this seismic program in 2008.

We are also waiting on final approval for another Exploration License in License block EL-1069. Ptarmigan Resources will also benefit from through Tekoil’s planned 3D seismic marine survey, which is part of the farm-in agreement between the two parties. Upon completing the seismic program, Tekoil will earn an additional 27% working interest in license EL-1069, for a total ownership of 60%. It is expected that the seismic area will extend from the Port au Port Peninsula all the way through to the boundary of EL # 1069. Tekoil expects this work to begin on the onshore coast-line area into the transition zone extending into the offshore block.

Benefits Plan: As part of its obligation to government, as well as the people from the Bay of Islands area, Tekoil will submit a benefits plan. This will establish the amount of local content expected to be hired during the drilling program. As seen below, we have already begun hiring Newfoundlanders and will continue to do so as we move forward.

Tekoil has shown its commitment to Newfoundland & Labrador, and is working hard to ensure the safety of the people, the environment, and the equipment. In order to drill this well as safely as possible, Tekoil has hired a local Newfoundlander, Ron Dooley, as its HSE/Q officer. Roland Strickland, who is from the Stephenville area, is also consulting with us on the program and has accepted the position as well site geologist. Both of these men have an enormous amount of experience in their chosen fields and will be tremendous asset for Tekoil.

Rig Refurbishment Centre:

Earlier this year Tekoil identified the old Stephenville stadium as the desired location for this project. Tekoil hired a local west coast company Fabax Limited to test the structural integrity of the building, to ensure it was capable of holding the heavy overhead cranes structurally, the building is sound and we are awaiting an environmental report before proceeding with $1.5 M in necessary upgrades to bring the building up to code.

The clean environmental report on the building will allow Tekoil to move forward with its plan to winterize the building, allowing work to continue on the inside for the winter months. The town of Stephenville has been very gracious with their time and their resources. The residents have been extremely patient while reports are being submitted and reviewed. We are continuing to monitor industry trends and the feasibility of the business, and if all approvals are met within the next several weeks and the market segment remains strong, Tekoil will expect to see its first rig through the Centre during 2008.

Well that’s it for now. I will be attempting to make one entry per week (Monday’s) moving forward, so please stay tuned for further updates, and thank you Donna for a job well done!! Oh and I almost forgot…

HAPPY 40TH BIRTHDAY FROM US ALL!!