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.

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So who wants to be a Tekoil analyst? Certainly not me!, but while in the process of closing our Galveston Bay acquisition, ENI, a major Italian oil and gas player announced a very large deal with Dominion Resources, which as reported by Raymond James & Associates Equity Research Department, has potentially placed a premium on oil and gas assets throughout the Gulf of Mexico.

In what is the largest E&P deal year-to-date in North America, Dominion announced that it was selling its Gulf of Mexico properties to Italian oil major ENI for $4.76 billion. This transaction was part of Dominion’s ongoing E&P divestiture program. Proved reserves being sold were estimated at 967 Bcfe (billion cubic feet equivalent), implying a reserve valuation of $4.92 per Mcfe (1,000 cubic feet equivalent). This price is notably high relative to current valuation multiples of publicly traded Gulf of Mexico-focused producers, which are generally between $3.00 and $4.00 per Mcfe. For example:

In addition to the sheer size and bullish valuation of the ENI deal, we also see the possibility of a broader strategic significance to this transaction for Tekoil. To further expand on that thought and in an effort to put things in perspective, the $50 million purchase price that Tekoil paid for its circa 80 Bcfe of privately held Gulf of Mexico proved oil and gas reserves, represents just $0.625 per Mcfe compared to ENI’s $4.93 per Mcfe, and the cash portion of Tekoil’s deal only represents $0.375 per Mcfe, less than 1/12th of the ENI deal?

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Albert Einstein once said that “Vision without execution is hallucination.” And Remember Sir Winston Churchill’s famous saying; “We will never, never surrender.” Well we executed the vision because we refused to quit, and I have a lot of non-hallucinating people that helped us to get there.

I must thank our dedicated legal team at Baker and Hostetler, in both the Orlando and Houston offices, the executive team at the sellers, Masters Resources, and of course the team at Goldman Sachs that helped us create the “win win” structure that made the deal possible. All parties were extremely patient and creative, which finally got the deal done. I must also thank the entire Tekoil team who at times thought I had lost my mind, but stayed the course through what seemed impossible at times. Many thanks to all of you.

We have a tremendous amount of hard work ahead with creating and integrating our own systems and getting our Houston office up and running, but that is a good challenge to have. We will update the web site to give you a better overview of the Galveston acquisition and the assets, together with posting progress on further developing the assets to increase our yields and firm up the reserve numbers.

On the field development side we are purchasing existing 3D seismic data for reinterpretation, which will be utilized to create more detailed geological maps for drilling the proved undeveloped reserves, and identifying potential deep well targets that remain unexplored. This is not going to happen overnight, but we have made it a priority to keep our shareholders better informed, so please make regular visits to our website for updates.

We will definitely be using this blog as a more informative instrument to report our work in progress. I apologize for lack of postings recently, but my quill was in brain freeze whilst getting this acquisition to the finish line.

And finally, I would like to thank all of our shareholders for your support and patience during our first acquisition. We trust and hope this will be the first of many as we build our foundation of reserves and revenue.

Whenever possible I continue to spend time with my friend and Tekoil’s success coach, Tom Connellan, but that has been much less frequently of late? You may remember the blog on 05-18-2006, “Everyone Needs a Coach.”

In spending less time with Tom I have reminded myself that the easiest thing to say to educational pursuits is, “I haven’t got time, because I’m too busy and traveling”. It’s like going to the gym, it’s always easier to say “I don’t have time”, but that is never true. My wife reminds me of that constantly. It’s simply a lack of purpose and focus, which leads to lack of desire, which leads to a lack of commitment to manage ones time. We all have the same amount of time every day, so it comes down to choices.

Now I do not say this to Tom because I do really enjoy his mentoring, but very occasionally I may postpone our meetings with hint of a white lie, usually if Arsenal are playing!!

Anyway, Tom mentioned to Frank Clear our COO that he knows Tekoil is going through growing pains, and perhaps our management team might want to read an excellent book; “The 25 Best Time Management Tools and Techniques”, co-authored by Pamela Dodd and Doug Sundheim.

Having skim read the book it reminded me that like everyone else I need to brush up in some areas. You cannot read one book and have all of the answers, and success is a lifestyle not an event. The book is currently sold exclusively on www.amazon.com, and it is the #1 selling book under time management with a 5 star rating.

The book is broken down into 5 themes:

FOCUS
PLAN
ORGANIZE
TAKE ACTION
LEARN

This book will help you to get seriously focused, so if you don’t already have it “Get time management”!!! You will be much more productive and much happier in you pursuits.

I believe “Failure” is “simple errors in judgement repeated regularly over time”, smoking cigarettes for example. Success on the other hand is “simple disciplines repeated regularly over time”. And “EASY” by definition is something you can do. It’s easy to eat a hamburger and it’s easy to eat a salad, yet so many of us are clogging up our artery’s and prematurely heading towards cancer and death. Smoking 10 cigarettes today won’t kill you today, but repeated regularly over time it will!! But do not kid yourself, because although these choices seem simple, you must remember it’s “EASY NOT TO”. So read the book!!

And finally, I had to save the best until last and inform you that the author is sleeping with the publisher? Pamela is Tom’s wife and he also has his own publishing company, Peak Performance Press, Inc.

Tom is always full of good surprises! Get time Management.

Happy New Year to everyone! I am really looking forward to an excellent 2007 for Tekoil, its management and staff, and of course our many shareholders. There are exciting things happening as a result of two years of foundation building, and although we still have a great deal of work to do, we are now poised make our mark in 2007.

2006 ended with an excellent New Year’s Eve Charity Ball at Basho’s Restaurant in St. John’s Newfoundland, so thank you to all the attendees and to all who donated to the Bell Island Boy’s and Girl’s Club. We raised $2,500 towards the sponsorship of eight teenage students for after school tutoring. Basho did their usual amazing job, with a superb selection of incredible food and great service.

And I want to give a special mention to Donna Parsons, our VP of Corporate Relations, who made our first Charity Ball possible. Donna has great plans for socially integrating Tekoil into the Province, and is very focused on our mission to give back to the communities and environments in which we operate. Having one Donna Parsons is like having ten normal people, so thank you Donna for all of your hard work and commitment.

On a personal note, it was my wife and daughter’s first visit to Newfoundland, and they both had a “freezing good time”. Believe it or not, neither of them had ever seen snow before, so there were lots of Kodak moments of my daughter Emma playing in the snow and the “ice sculpture” that resembled my wife Glori. We had a magical time.

Speaking of freezing, a satellite has detected a chunk of ice larger than Manhattan, which broke away from an island in the Canadian Arctic. The problem is that during summer when the sea ice melts, this chunk of ice could potentially travel westwards to the Beaufort Sea, playing havoc with the oil and gas exploration operations, as well as production platforms and shipping lanes.

Regarding weather, our friends in Australia would prefer that the iced chunk floated towards them, so they could alleviate their ongoing “big dry”. They are all praying for a reversal of the “el niño” conditions to get some form of rainy season this year. And New York broke a 129 year old record without any snow for December, while Colorado was pounded with record snow falls.

Meanwhile China is gearing for their February 18th, 2007 celebrations that will usher in their New Year; the “Year of the Pig”. Their weatherologist Jian Weisong, Director of the Earthquake Bureau, said they have snake farms that are monitored with video cameras, and when they start trying to escape by head butting the walls, he knows there is an imminent earthquake. Apparently snakes can sense quakes up to seventy five miles away and as much as five days before they happen. Perhaps French footballer Zinadine Zidane’s World Cup head butting incident had greater meaning?

And in Africa, the IMF has just given Zimbabwe a ‘Z’ on their report card, stating that their 1000% inflation and 80% unemployment needs some serious repair work. So enter China with talks of a $2 billion life line to help their economy. Meanwhile Nigeria had yet another unfortunate explosion in December, killing three hundred looters who were tapping into one of the government pipelines in Ebule Egba. When are they going to learn?

On the home front, a recent report from the Trade Department shows that despite all the political posturing between the Venezuelan Government and the US, the economy in Venezuela is booming at a blistering rate of 9% per annum. Their oil exports to the US alone were close to $40 billion, and their imports are also booming. US exporting companies are gaining 33% of this trade.

And in football my “Gunners” had a superb FA Cup game against Liverpool at Anfield (Liverpool’s ground) this weekend, and despite losing in terms of possession, Arsenal dominated at shots on goal and deserved their 3-1 win. This was Liverpool’s first loss at home in 21 games, so a huge scalp for the world’s greatest team!!!

This year I have decided to leave my futurology hat in the cupboard and just make a few solid predictions: Manchester United will walk away with the Premiership’s Silverware this season, Roger Federer will continue his dominance in Men’s Tennis, as will Tiger on the PGA Tour. Tiger will also become a daddy, a fairly simple prediction, as his wife is pregnant, and expecting their first baby in the summer… CONGRATULATIONS to you both!

So with Tekoil making great strides, and “Baby Nike” being only a few months away, 2007 is without doubt a great year in the making!