FORWARD LOOKING INFORMATION
Certain of the statements contained in all parts of this document including, but not limited to, those relating to our production plans, the effect of changes in strategy and business discipline, future tax matters, future general and administrative expenses on a per unit of production basis, changes in wells operated and reserves, future growth and expansion, future exploration, future seismic data (including timing and results), expansion of operation, our ability to generate additional prospects, review of outside generated prospects and acquisitions, additional reserves and reserve increases, replace production and manage our asset base, enhancement of visualization and interpretation strengths, expansion and improvement of capabilities, integration of new technology into operations, credit facilities, re-determination of our borrowing base, attraction of new members to the technical team, future compensation programs, new focus on core areas, new prospects, new alliances, future capital expenditures (or funding thereof) and working capital, sufficiency of future working capital, borrowings and capital resources and liquidity, projected rates of return, retained earnings and dividend policies, projected cash flows from operations, future commodity price environment, expectation or timing of reaching payout, outcome, effects or timing of any legal proceedings or contingencies, the impact of any change in accounting policies on our financial statements, the number, timing or results of any wells, the plans for timing, interpretation and results of new or existing seismic surveys or seismic data, future production or reserves, future acquisition of leases, lease options or other land rights, any other statements regarding future operations, financial results, opportunities, growth, business plans and strategy and other statements that are not historical facts are forward-looking statements. These forward-looking statements reflect our current view of future events and financial performance. When used in this document, the words “budgeted,” “anticipate,” “estimate,” “expect,” “may,” “project,” “believe,” “intend,” “plan,” “potential,” “forecast,” “might,” “predict,” “should” and similar expressions are intended to be among the expressions that identify forward-looking statements. These forward-looking statements speak only as of their dates and should not be unduly relied upon. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Such statements involve risks and uncertainties, including, but not limited to, those set forth and with other factors, detailed in this document and our other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties.
AVAILABLE INFORMATION
Our website address is www.egvr.com. We make our website content available for information purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference in this MD & A. We make available on this website under “Investor Relations – SEC Filings, and general news items and information” free of charge, our annual reports, quarterly reports, current reports and amendments to those reports as soon as reasonably practicable after we electronically file those materials with, or furnish those materials to, the Securities and Exchange Commission (“SEC”). The SEC also maintains a website at www.sec.gov that contains reports, proxy statements and other information regarding SEC registrants, including us.
ITEMS 1 AND 2. BUSINESS AND PROPERTIES
The current financial statements are a “Consolidated”
version of Eagle and Hohle Oil (both) to reflect the transfer of funds from
Eagle to Hohle for the field operations. Current contracts reflect the
agreement with Hohle Oil Services Company Inc., and Hohle Oil Energy Services
Company Inc to operate the wells on Eagle’s behalf. Eagle has the agreement
with Hohle as Hohle has the bonds posted with the State of
Production
Continuous production from the wells commenced on February 18, 2007. In 2006, production was off and on due to problems with various field managers and equipment. The company did sell approximately $50,000 of oil from its efforts. As of June 30, the company had 1104 barrels of oil in its sale tanks. No oil had yet been sold for the second quarter, but the Company continued to increase its inventory. Storage capacity for the company on its site is approximately 8000 barrels. The storage ability enables the company to take advantage of market conditions and sell the oil when prices are rising. In February the Company hired new field managers to re-start the operations under Hohle. The managers have maintained the continuous operations, cleaned up numerous locations, and repaired the workover rig (pulling truck) for use in the field.
Since early June, the well service vehicle has been repairing
the numerous wells of the Company that the State of
Finances
The Company incurred new debt as of the end of June, of approximately $80,000 from loans to the Company. Other debts are from normal business activities.
Upon the success of the Company obtaining up to 10 wells operating, the Company should be fully self sufficient with adequate revenues to proceed with the field development. The Company has been able to hold expenses down during the second quarter due to the extensive capital investment completed in 2005 and 2006. Most of the equipment requirements have been met and only pumps and tubing for the future wells being put into production will be added to the capital expenses.
Management
With the completion of the annual Shareholders Meeting in June, there have been director’s changes. Director Jim Frye has retired as a director, but will continue as the chief engineer for the CryoYcix units. New directors were elected: Julia Thompson, Ronald Bender and Heather Walsh. The remaining directors were re-elected. No changes in officers were made.
Management continues to believe that as production increases in the oil field and the further development of the CryoYcix units, management and directors duties may change and other personnel will be added or replaced. To augment the changes as anticipated, management has created a CryoYcix committee to monitor the development of the units, and an audit committee, to follow the progress of the accountants.
Respectively submitted:
Brian Wilmot
CEO