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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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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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.

The biggest media storm was the firing of “shock jock” Don Imus over his totally offensive remarks about the girl’s college basketball team. This guy would appear to have been caught in a time warp, asleep in the saddle. Personally I hope the media attention will encourage networks to ban many of all the vulgarities that foul the airways in some rap and hip hop music.

The next week was followed by the tragic shootings of the students at Virginia Tec. I hope there will be lessons learned from this tragedy to prevent similar occurrences, given the killers state of mind and his easy access to weapons. The right to bear arms was written in a time when guns were limited to shooting one bullet before reloading. It’s time to wake and smell the coffee America. Automatic weapons lead me to believe that the gun laws must change if we are to prevent these tragic events in the future.

On a different note, here’s some news from around the globe:

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Now, if you are traveling to San Francisco any time soon, be sure to take some extra cash, because the price at the pump is a whopping $4.00! The National average is currently $2.66, but is definitely heading north. A barrel of oil is resting at $66, but the hostage crisis in Iran is making the oil pundits very nervous. There are more kidnappings in Nigeria, and the US refineries are in maintenance mode, re-tooling to convert from winter to summer gas. With tourists getting ready to hit the summer gas pedals, I wonder if we have an $80 barrel looming?

Of course affecting all of this in the background is China, so here are some of the latest factoids:

1. Exxon Mobil has just inked its largest investment deal in China. They are investing $5 billion in a joint venture to run 750 gas stations and a petrochemical refinery.
2. There are 461 million cell phone users in China versus 219 million in the US.
3. There are139 million cables subscribers in China versus 110 million subscribers in the US.
4. There are 11.5 million private car owners in China versus 136.4 million car owners in the US.
5. China has a balance of trade surplus of $117.5 billion versus the US having a deficit of $225 billion.
6. The US Commerce Department has just tabled a motion to impose tariffs on imported goods from China as they claim that China is not playing by the rules and their currency is under-valued to support their exports.

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And the Chinese government is starting to free up property rights for its civilians, which will quell some of the discontent being voiced by their rural population, who are being left behind in their booming economy. In the town of Zhushan, near the city of Yongzhou, twenty thousand rioters went on the rampage, burning cars and buses and damaging government buildings? It turns out that a local company had taken over the town’s bus routes and increased the bus fare from $0.50 to $1. Well their voices were heard and the price has been reverted back to $0.50.

Meanwhile the Angolan government is flexing its oil muscles: They expect to produce 585 million barrels of oil this year generating about $30 billion. They turned down China’s $3 billion finance package and have told the IMF to take a hike. They claim they do not need China’s help, nor do they need them looking into Swiss bank accounts where most of the money will end up!!

Still in Africa, Zimbabwe would appear to be close to a melt down with continued riots and inflation at 1,700%. President Mugabe is attempting to change the constitution to stay in power until 2010, and his police force arrested fifty people last weekend, torturing them whilst in detention. The leader of the opposition party, Morgan Tsvangarai was beaten so badly that he suffered a fractured skull and remains in intensive care. Mr. Mugabe has said that his critics can “Go Hang”, whatever that means?

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Poor Donna Parsons our VP of Corporate Relations had ten feet of snow to dig out in Newfie during the past few weeks so that she could visit our Florida office, only to return to an additional two to three feet of the stuff this week!!

The one upside to the icy weather is that it is helping to keep the oil price buoyant, which I think is very important if we are to maintain the very high level of new technology investment in oil and gas recovery techniques. These types of investments should have happened long before now, but big oil has been “living fat” and didn’t see the need or the long term harm of leaving fields with up to seventy five percent of their oil still in the ground!! The upside to that is companies like ours can now go back and redevelop these fields, using technology as our “axiom” for success.

And these severe weather patterns must have given the Chinese stock market a cold, because they had a serious nine percent downward correction on 27th February that caused major ripples in other global markets. There are over ninety thousand new trading accounts opened EVERY DAY in China, and the Shanghai Index has increased over one hundred and thirty percent in value from last year. The population has over $2 trillion parked in their bank accounts, so there is somewhat of “gold rush” fever sweeping their nation.

On the home front, the US economy is still surprisingly resilient, but there are warning bells that the housing market has over-built. It appears that the sub-prime lenders have created a nightmare, because the experts say that twenty percent of sub-prime lending’s over the last two years will end in foreclosure. This far exceeds the worst similar mortgage market scenario during the “oil patch” disaster of the 1980’s, so it doesn’t look promising.

And finally what does look promising are my Gunners, who are playing PSV Eindhoven today at Emirates stadium (March 7, 2007) for their second leg match in The Champions League. We have several injuries, but have not lost in our new stadium for twenty one matches, so I am keeping the faith!! Arsenal are 1-0 down after the first leg in Holland, so they must win by 2 goals if they are to go through to the final eight. This is not a prediction but a hopeful wish… Arsenal will win 3-0.

Gooooooooooo Arsenal!!!

The term NEWS is supposed to be any NEW information on current events, which is then relayed by the media. Unfortunately we are being fed constant “crapola” about the late Anna Nicole Smith, followed by a close second with the Britney Spears debacle. I need not mention anything else about this case because there is a media-frenzy all over it, except to say that I would encourage others to turn the TV channel. It’s a sad thing when an entire country gets caught up in such complete nonsense.

So while the media was focused on ratings and magazine sales at the expense of the frenzy hungry public, what did we all miss?

1. A burning ferry sank, killing at least 42 people in Jakarta, Indonesia.
2. The Italian Prime Minister resigned after losing a vote of confidence on the continued deployment of their Italian troops in Afghanistan. The jury is still out whether this tokenism resignation will be accepted.
3. Researchers are amazed because chimpanzees in Senegal have been observed making and using wooden spears to hunt other primates.
4. New Zealand fisherman fought for 2 hours to haul in a 33 ft long “Mesonychoteuthis Hamiltoni” - an adult colossal squid weighing in at 990 lbs. The fishermen quipped that if they were to make calamari rings out of this, they would be the size of tractor tires!
5. A cyclone touched down in flood-ravaged Mozambique killing more people in their precarious living situations.
6. Iran decided to fire their first rocket into space to add more tension regarding their nuclear and technical capabilities.
7. There were more kidnappings in Nigeria and the shooting of a Lebanese oil worker. This coupled with more severe winter snow storms closing airports and highways from the Midwestern USA heading eastward, has the weatherologists and oil and gas futures experts in a quandary.
8. Lastly, before the sports page, bleary eyed viewers (not me), watched the Oscars to see the best movie category go to “The Departed”. This was directed by Martin Scorsese and he got the nod for best director. The best actor went to Forest Whitaker for his role as Idi Amin in “The Last King of Scotland”, and Helen Mirth won best actress for “The Queen”. This would appear to have been a “Royal Affair”?

And in English football, neither words nor the result can do any justice to the “21 year old Gunners” playing the game of their lives against Chelsea’s First Team, in the Carling Cup Final.

Coach Wenger stuck to his philosophy and allowed his spirited young team to play in the final, before 70,073 fans at the Cardiff Millennium Stadium. He could have played his first team players, but his philosophy is to keep the same players in the squad that helped them get to the final. There were four teenagers in the side, and these players can hold their heads up high in this their graduation. And young Theo Walcott beamed his 17 year old smile, as he opened his account to put Arsenal 1-0 in the lead, scoring his first ever goal in an Arsenal shirt.

The final result was 2-1 to Chelsea, and had it not been for some questionable refereeing on all fronts, I believe we could have won. We had more possession, more shots at goal and more flair, but unfortunately a lot less luck, except when Chelsea hit the crossbar twice. The key now for these young players, is to put this defeat down to “cup final” experience and move on to win other silverware. With such a talented pool of “young guns”, the future for Arsenal Football Club looks very promising.

Sadly there was a fracas on the field right at the end, which did tarnish the match somewhat, and of course the referee took out his deck of yellow and red cards, sending off 2 Arsenal players and 1 Chelsea player. Both team managers ran onto the field to take charge of the situation and calm their players. I think the Football Association will still have something to say about this, but it is definitely time for the sport to wake up and introduce the “replay button” for questionable or undecided refereeing decisions.

Regardless of the result and the lingering feeling of “O Me Miserum”, I STILL LOVE THIS GAME!!

Perhaps this will be a good sign for Jiang Jiemin, the new President of the China National Petroleum Corporation. CNPC is the world’s seventh largest, and Asia’s richest enterprise. It supplies 40% of China’s oil requirements and 70% of its natural gas needs. But Jiemin will need to make sure that he maintains his reputation as a tough man with a soft heart, so that he can steer his company with its more than 1.2 million employees in the right direction.

In other Chinese news, I have previously cited that the Chinese government has been buying up oil and gas reserves and other natural resources around the world, or doing joint ventures with countries that western governments deem “rogue nations”. Well there is a new development with the Chinese, as they are about to form the largest Mutual Fund in the world:

The State Foreign Exchange Investment Company is to be allocated $210 billion from China’s current $1 trillion foreign exchange war chest. Their investments will be in oil and gas (shocker!!), as well as financial assets and corporate acquisitions. I have seen different reports, but China apparently has $350 billion-plus invested in US treasury bills!! That’s very scary! I trust that whenever they divest a portion of their US Treasury portfolio, they will be made to do it very slowly. If not, the US dollar would literally crash!

So with that said, what about the oil price? Well with China’s growing thirst for oil and gas, these late winter storms in the US and Europe, and Nigeria’s ongoing troubles with MEND, the oil price is hovering around the $60 mark. But Nigeria is holding their national elections in April, and with MEND and several other factions wanting their voices to be heard, they are determined to bring the oil industry to a complete stand-still.

BBC reporter Alex Last interviewed MEND Commander Saroma George this month, who declared that “chaos will evolve”. And CNN reporter Jeff Koinage had a close call when he and his crew were attacked with machine gun fire, before he could raise his white flag and tell them that Nigerian leader Major General Tamuno had granted their faction leader an interview. Unfortunately this faction echoed similar sentiments suggesting that all foreign oil companies should leave the Delta region until this political landscape included the locals.

So what does this mean for the oil price? Well with all of this unrest that’s unpredictable, but barring Nigeria’s output coming to a complete stand-still, I can see oil reaching $65 per barrel during the next several weeks, but then maintaining at $55 to $60 per barrel. My reasoning behind it not sky-rocketing is that MEND have made similar threats before, and whilst they have reduced oil production and continue to kidnap foreign workers, I believe they are getting paid ransom dollars, which is cash flowing their army. Plus we are only sixty days away from warmer weather, which means a decrease in demand for gas and heating oil, etc. Only time will tell, but one thing is for certain, no one can be certain!

And I cannot possibly write an entire blog without mentioning the fact that Arsenal are playing Chelsea in the final of the Carling Cup next Sunday (February 25th at 10.00 am EST). Arsenal made it to the final with a 50% reserve team, which comprised of several teenagers. And these are the players that will play against Chelsea’s “superstars” on Sunday. Bottom line is that Arsenal’s “young guns” have earned their place in the final, and it would be unfair of Arsene Wenger to suddenly put the like’s of Thierry Henry and William Gallas in the team. I am of course concerned, but if the Arsenal youngsters can go to Liverpool and beat them 6-3, after Liverpool had gone 21 games undefeated at home, then my young Gunners can do anything! I think it will be a close match, and hope that Arsenal will win 2-1, but one thing is for certain, I cannot be certain!

Kung Hai Fat Choi!!

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.