One of Genesis Energy's existing relationships was with Sterling Energy. Sterling was instrumental in getting the company's first funds placed and managed. Due to a change of business direction Sterling Energy informed the Board and as a result it was mutually agreed that the existing business relationship was to end. Over the next few months all dealings with Sterling will be brought to a conclusion.

In moving forward, one of the decisions made was too no longer have exclusive arrangements with any one supplier or management company.

Genesis Energy is pleased to announce a new alliance with Reichmann Petroleum Corp, based in Texas, USA. Their overview profile is available in the "Track Record" area of this website. We look forward in working with Reichmann, in developing the company's asset base going into the future, with promising results for our shareholders. We also would like to welcome Denver H. Hopkins as expert advisor to the board. Denver brings extensive experience in the Oil and Gas industry to Genesis Energy, and we look forward to his contribution.

Additional interests were bought in the Northwest Rogers and Boot Hill fields, see below for details.

In accordance with Australian Corporate Law the existing prospectus has expired it's 13 months life cycle. A new prospectus is being drafted and is expected to be lodged in August 2006. The company as such may NOT take on any new shareholders at this time.

Revenue from the sale of Oil production has been received, back dating 4 months. From here on, the revenue will be monthly. The company shows a gross profit from February on a month to month basis. Meeting the boards expectations that the company model is a profitable one.

Location

The Northwest Rogers and Boot Hill Field’s are located in LaSalle Parish, Louisiana approximately 2 miles West of Catahoula Lake and out of the fair way of hurricanes that usually hit the coast of Louisiana around summer and autumn.  

Wells and Reserves

• The Northwest Rogers Field is comprised of new leases taken by Belle Exploration covering approximately +/-320 acres.
• The Boot Hill Field is comprised of new leases taken by Belle Exploration covering approximately +/-240 acres.
• Current production is averaging 120 BOPD in Northwest Rogers and 81 BOPD in Boot Hill for a combined total of ~201 BOPD gross. All gas produced is used in lease operations.
• There are over six identified drilling locations for proved reserves (PUDs);
• Excellent subsurface well control (there is no seismic data available).

Have you noticed that in a matter of 48 hours oil has spiked up past US$70 a barrel and natural gas is up past a whopping US$12.00 per mcf!!  This is confirmed with the futures of the commodities too.  This latest spike in price is a direct result of hurricane Katrina off the coast of Louisiana and it looks like it will hit the mouth of the Mississippi River and push a wall of 20 feet of water through New Orleans. 

New Orleans has been evacuated and most of the oil rigs and refineries in the path of the Hurricane in the Gulf of Mexico have been shut down.  Now what’s important to note is the supply and demand of energy – one hurricane in one part of the USA can jump oil and gas prices $3-4 dollars almost overnight!  It shows you how fragile the supply of oil is.  I would expect that something like this will happen once the world finally figures out that supply cannot keep up with demand.  You could expect to see oil and gas prices spike upwards very quickly and stay there just like there was a hurricane off the coast of Louisiana except this hurricane will not end. 

What is interesting about this hurricane is that the futures prices are very high too telling us that the market seems to think that due to the intensity of the hurricane that energy prices will remain strong for many months and the time to recovery will be very long.