UNITED STATES

SECURITIES AND EXCHANGE COMMISSION



Washington, D.C. 20549



FORM 10-QSB



[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934.



For the quarterly period ended March 31, 2007



Commission File Number: 0-32507



| |                                                         | 
| | ------------------------------------------------------- | 
| | EGPI FIRECREEK, INC.                                    | 
| | (Exact name of registrant as specified in its charter.) | 



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|NEVADA                                                         |  | 8-0345961                           
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)



| |                                                | 
| | ---------------------------------------------- | 
| | 6564 Smoke Tree Lane
Scottsdale, Arizona 85253 | 
| | (Address of principal executive offices)       | 



| |                             | 
| | --------------------------- | 
| | (480) 948-6581              | 
| | (Issuer's telephone number) | 



| |                                                                                    | 
| | ---------------------------------------------------------------------------------- | 
| | Energy Producers, Inc.                                                             | 
| | (Former name, former address, and former fiscal year if changed since last report) | 



Indicate  by check mark  whether the  registrant  (1) has filed all reports required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934  during  the  preceding  12 months  (or for such  shorter  period  that the registrant was required to file such reports),  and (2) has been subject to such filing requirements for the past 90 days.  YES  [X]          NO [  ]



State the number of shares outstanding of each of the issuers classes of common stock as of the latest practicable date:



As of March 31, 2007, the issuer had 399,388,946 shares of its $0.001 par value common stock issued and outstanding. There are -0- shares of Series A, B, or C Preferred Stock at $.001 par value for each of the Series of Preferred, and no shares of non-voting common stock outstanding.



1



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EGPI FIRECREEK, INC

f/k/a Energy Producers, Inc.



10-QSB

March 31, 2007



Table of Contents



|         |                                                            |     
|-------- | ---------------------------------------------------------- | ----
|         |                                                            | PAGE
|PART 1:  | FINANCIAL INFORMATION                                      |     
|         |                                                            |     
|Item 1.  | Financial Statements - Unaudited                           |     
|         |                                                            |     
|         | Consolidated Balance Sheets                                | 3   
|         |                                                            |     
|         | Consolidated Statement of Operations                       | 4   
|         |                                                            |     
|         | Consolidated Statement of Cash Flows                       | 5   
|         |                                                            |     
|         | Consolidated Statement of Changes in Shareholders' Equity  | 6   
|         |                                                            |     
|         | Notes to the Unaudited Consolidated Financial Statements   | 7   
|         |                                                            |     
|Item 2.  | Management's Discussion and Analysis or Plan of Operation  | 11  
|         |                                                            |     
|Item 3.  | Controls and Procedures                                    | 14  
|         |                                                            |     
|PART II: | OTHER INFORMATION                                          |     
|         |                                                            |     
|Item 1.  | Legal Proceedings                                          | 14  
|         |                                                            |     
|Item 2.  | Unregisterd Sales of Equity Securities and Use of Proceeds | 14  
|         |                                                            |     
|Item 3.  | Defaults upon Senior Securities                            | 14  
|         |                                                            |     
|Item 4.  | Submission of Matters to a Vote of Security Holders        | 14  
|         |                                                            |     
|Item 5.  | Other Information                                          | 14  
|         |                                                            |     
|Item 6.  | Exhibits                                                   | 15  
|         |                                                            |     
|         | Certifications                                             |     
|         |                                                            |     
|         | Signature                                                  | 15  
|         |                                                            |     
|         |                                                            |     





2



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EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Consolidated Balance Sheets

As of March 31, 2007 and December 31, 2006



|                                                                                                                                                                  |           |              |           |   |              |  | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------ | --------- | - | ------------ |  | 
|                                                                                                                                                                  | Unaudited |              |           |  
|                                                                                                                                                                  | 31-Mar-07 |              | 31-Dec-06
|ASSETS                                                                                                                                                            |           |              |           |   |             
|Current assets:                                                                                                                                                   |           |              |           |   |             
|Cash                                                                                                                                                              | $         | 86,647       |           | $ | 14,955      
|Accounts receivable                                                                                                                                               |           | 4,525        |           |   | -           
|Deferred charges                                                                                                                                                  |           | 297,838      |           |   | 319,190     
|Total current assets                                                                                                                                              | $         | 389,010      |           | $ | 334,145     
|                                                                                                                                                                  |           |              |           |   |             
|Other assets:                                                                                                                                                     |           |              |           |   |             
|Fixed assets- net                                                                                                                                                 |           | 834,362      |           |   | 868,869     
|Total assets                                                                                                                                                      | $         | 1,223,372    |           | $ | 1,203,014   
|                                                                                                                                                                  |           |              |           |   |             
|LIABILITIES AND SHAREHOLDERS' DEFICIT                                                                                                                             |           |              |           |   |             
|Current liabilities:                                                                                                                                              |           |              |           |   |             
|Accounts payable & accrued expenses                                                                                                                               | $         | 712,448      |           | $ | 839,373     
|Convertible debentures payable-net                                                                                                                                |           | 171,875      |           |   | 158,543     
|Equity line notes payable                                                                                                                                         |           | 4,832,873    |           |   | 4,345,605   
|Total current liabilities                                                                                                                                         | $         | 5,717,196    |           | $ | 5,343,521   
|                                                                                                                                                                  |           |              |           |   |             
|Advances payable to shareholders                                                                                                                                  |           | 203,005      |           |   | 168,052     
|Convertible debentures payable-net                                                                                                                                |           | 523,514      |           |   | 374,875     
|Total liabilities                                                                                                                                                 | $         | 6,443,715    |           | $ | 5,886,448   
|                                                                                                                                                                  |           |              |           |   |             
|Shareholders' deficit:                                                                                                                                            |           |              |           |   |             
|Series A preferred stock, 20 million authorized, par value $0.001,one share convertible to one common share, no stated dividend, none outstanding                 | $         | -            |           | $ | -           
|Series B preferred stock, 20 million authorized, par value $0.001,one share convertible to one common share, no stated dividend, none outstanding                 |           | -            |           |   | -           
|Series C preferred stock, 20 million authorized, stated value $.001,one share convertible to ten common shares, no stated dividend                                |           | -            |           |   | -           
|Common stock- $.001 par value, authorized 1,320,000,000 shares, issued and outstanding, 399,388,946 at March 31, 2007 and 395,367,446 shares at December 31, 2006 | $         | 399,389      |           | $ | 395,367     
|Additional paid in capital                                                                                                                                        |           | 19,810,155   |           |   | 19,714,669  
|Accumulated deficit                                                                                                                                               |           | (25,429,887) |           |   | (24,793,470)
|Total shareholders' deficit                                                                                                                                       |           | (5,220,343)  |           |   | (4,683,434) 
|                                                                                                                                                                  |           |              |           |   |             
|Total Liabilities & Shareholders' Deficit                                                                                                                         | $         | 1,223,372    |           | $ | 1,203,014   





See the notes to the consolidated financial statements.



3



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EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Unaudited Consolidated Statements of Operations

For the Quarters Ended March 31, 2007 and March 31, 2006



|                                                 |           |             |           |   |            
|------------------------------------------------ | --------- | ----------- | --------- | - | -----------
|                                                 | Unaudited |             | Unaudited
|                                                 | 31-Mar-07 |             | 31-Mar-06
|                                                 |           |             |           |   |            
|Gross Revenues from sales                        | $         | 33,883      |           | $ | 7,980      
|Cost of sales                                    |           | (29,905)    |           |   | (6,647)    
|Net Revenues from sales                          | $         | 3,978       |           | $ | 1,333      
|                                                 |           |             |           |   |            
|General and administrative expenses:             |           |             |           |   |            
|General administration                           | $         | 457,498     |           | $ | 466,683    
|Total general & administrative expenses          |           | 457,498     |           |   | 466,683    
|                                                 |           |             |           |   |            
|Net loss from operations                         | $         | (453,520)   |           | $ | (465,350)  
|                                                 |           |             |           |   |            
|Other revenues and expenses:                     |           |             |           |   |            
|Interest expense                                 |           | (182,897)   |           |   | (303,370)  
|                                                 |           |             |           |   |            
|Net loss before provision for income taxes       | $         | (636,417)   |           | $ | (768,720)  
|                                                 |           |             |           |   |            
|Provision for income taxes                       |           | -           |           |   | -          
|                                                 |           |             |           |   |            
|Net loss                                         | $         | (636,417)   |           | $ | (768,720)  
|                                                 |           |             |           |   |            
|Basic & fully diluted net loss per common share: |           |             |           |   |            
|Loss per share                                   | $         | 0.00        |           | $ | 0.00       
|                                                 |           |             |           |   |            
|Weighted average of common shares outstanding:   |           |             |           |   |            
|Basic & fully diluted                            |           | 396,191,615 |           |   | 246,915,462





See the notes to the consolidated financial statements.





4



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EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Unaudited Consolidated Statements of Cash Flows

For the Quarters Ended March 31, 2007 and March 31, 2006



|                                                                       |           |           |           |   |          
|---------------------------------------------------------------------- | --------- | --------- | --------- | - | ---------
|                                                                       | Unaudited |           | Unaudited
|                                                                       | 31-Mar-07 |           | 31-Mar-06
|Operating Activities:                                                  |           |           |           |   |          
|Net loss from continuing operations                                    | $         | (636,417) |           | $ | (768,720)
|Adjustments to reconcile net loss items not requiring the use of cash: |           |           |           |   |          
|Depreciation expense                                                   |           | 34,508    |           |   | 8,935    
|Amortization of beneficial conversion feature                          |           | 4,597     |           |   | 92,335   
|Consulting expense                                                     |           | -         |           |   | 5,407    
|Interest expense                                                       |           | 178,300   |           |   | 211,035  
|Amortization of deferred charges                                       |           | 21,352    |           |   | -        
|Changes in other operating assets and liabilities :                    |           |           |           |   |          
|Accounts receivable                                                    |           | (4,525)   |           |   | (3,267)  
|Deferred charges                                                       |           | 157,374   |           |   | -        
|Accounts payable and accrued expenses                                  |           | (153,450) |           |   | 211,409  
|Net cash used by operations                                            | $         | (398,261) |           | $ | (242,866)
|                                                                       |           |           |           |   |          
|Financing Activities:                                                  |           |           |           |   |          
|Credit equity line                                                     | $         | 435,000   |           | $ | -        
|Issued common stock                                                    |           | -         |           |   | 100,000  
|Shareholder advances received (paid)                                   |           | 34,953    |           |   | (5,555)  
|Net cash provided by financing activities                              |           | 469,953   |           |   | 94,445   
|                                                                       |           |           |           |   |          
|Net increase (decrease) in cash during the fperiod                     | $         | 71,692    |           | $ | (148,421)
|                                                                       |           |           |           |   |          
|Cash balance at January 1st                                            |           | 14,955    |           |   | 149,962  
|                                                                       |           |           |           |   |          
|Cash balance at March 31st                                             | $         | 86,647    |           | $ | 1,541    
|                                                                       |           |           |           |   |          
|Supplemental disclosures of cash flow information:                     |           |           |           |   |          
|Interest paid during the period                                        | $         | -         |           | $ | -        
|Income taxes paid during the period                                    | $         | -         |           | $ | -        





See the notes to the consolidated financial statements.



5



---

EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Unaudited Consolidated Statement of Changes in Shareholders Deficit

For the Quarters Ended March 31, 2007 and March 31, 2006



|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|------------------------------------ | ----------- |  | ----- | ------- | ------- | - | ----------- |  | ----- | ------------ |  | - | -----------
|                                     | Common      |  | Par   |         | Paid in |   | Accumulated |  |       |             
|                                     | Shares      |  | Value |         | Capital |   | Deficit     |  | Total
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Balance at December 31, 2006         | 395,367,446 |  | $     | 395,367 |         | $ | 19,714,669  |  | $     | (24,793,470) |  | $ | (4,683,434)
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Issued shares to pay equity line     | 4,021,500   |  |       | 4,022   |         |   | 26,616      |  |       |              |  |   | 30,637     
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Beneficial conversion feature        |             |  |       |         |         |   | 68,871      |  |       |              |  |   | 68,871     
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Net loss for the period              |             |  |       |         |         |   |             |  |       | (636,417)    |  |   | (636,417)  
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Balance at March 31, 2007- unaudited | 399,388,946 |  | $     | 399,389 |         | $ | 19,810,156  |  | $     | (25,429,887) |  | $ | (5,220,343)
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|                                     | Common      |  | Par   |         | Paid in |   | Accumulated |  |       |             
|                                     | Shares      |  | Value |         | Capital |   | Deficit     |  | Total
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Balance at January 1, 2005           | 220,913,500 |  | $     | 220,913 |         | $ | 15,878,127  |  | $     | (20,547,650) |  | $ | (4,448,610)
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Issuance of warrants                 |             |  |       |         |         |   | 5,407       |  |       |              |  |   | 5,407      
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Issuance of common stock             | 4,000,000   |  |       | 4,000   |         |   | 96,000      |  |       |              |  |   | 100,000    
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Conversion of preferred stock        | 20,250,000  |  |       | 20,250  |         |   | 1,518,750   |  |       |              |  |   | 1,539,000  
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Issued shares to pay equity line     | 13,009,850  |  |       | 13,010  |         |   | 335,012     |  |       |              |  |   | 348,022    
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Net loss for the period              |             |  |       |         |         |   |             |  |       | (768,720)    |  |   | (768,720)  
|                                     |             |  |       |         |         |   |             |  |       |              |  |   |            
|Balance at March 31, 2006-unaudited  | 258,173,350 |  | $     | 258,173 |         | $ | 17,833,296  |  | $     | (21,316,370) |  | $ | (3,224,901)





See the notes to the consolidated financial statements.



6



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EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Notes to the Unaudited Consolidated Financial Statements

For the Quarters Ended March 31, 2007 and March 31, 2006



1.

Organization of the Company and Significant Accounting Principles



EGPI Firecreek, Inc. (the Company) was incorporated in the State of Nevada October 1995. Effective October 13, 2004, the Company, previously known as Energy Producers Inc., changed its name to EGPI Firecreek, Inc.



The Company is a 50% non controlling owner of three gas wells in Wyoming.



In December 2006, the Company increased its authorized common stock to 1,320,000,000 shares with par value of $.001. Twenty million of these shares are non-voting.



Consolidation-the accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Firecreek Petroleum, Inc.  All significant inter-company balances have been eliminated.



Use of Estimates- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make reasonable estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses at the date of the consolidated financial statements and for the period they include.  Actual results may differ from these estimates.



Revenue Recognition-For its natural gas producing activities, the Company uses successful efforts costing.  Under successful efforts costing, certain identifiable costs associated with the acquisition of properties and extraction are capitalized and depreciated over the lesser of the depletion of the productive assets or its useful life.



Cash- For the purpose of calculating changes in cash flows, cash includes all cash balances and highly liquid short-term investments with original maturity dates of three months or less.



Deferred costs-Deferred costs are costs of obtaining the equity line of credit and are amortized over the life of the loan.



Fixed Assets-Fixed assets are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful life of the asset. The following is a summary of the estimated useful lives used in computing depreciation expense:



|                             |        
|---------------------------- | -------
|Office equipment             | 3 years
|Computer hardware & software | 3 years
|Improvements & furniture     | 5 years
|Well lease & equipment       | 7 years



Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized.  Minor repair expenditures are charged to expense as incurred.



Long Lived Assets- The Company reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount.



Debentures Payable-The Company applies Emerging Issues Task Force (EITF) No. #98-5, Accounting for Convertible Debt Issued with Beneficial Conversion Features.  EITF No. #98-5 requires that a beneficial conversion feature be recognized upon the issuance of convertible securities with a favorable conversion feature, and the resultant beneficial conversion feature be amortized to interest expense during the period from the date of issuance to the date the securities become convertible.



7



---



Income taxes-The Company accounts for income taxes in accordance with the Statement of Accounting Standards No. 109 (SFAS No. 109), "Accounting for Income Taxes.  SFAS No. 109 requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between financial statement and income tax bases of assets and liabilities that will result in taxable income or deductible expenses in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets and liabilities to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period adjusted for the change during the period in deferred tax assets and liabilities.



2. Going Concern



The accompanying consolidated financial statements have been presented in accordance with generally accepted accounting principals, which assume the continuity of the Company as a going concern.  However, during the years ended December 31, 2006 and December 31, 2005, the Company generated no material revenues and has relied on borrowings and the issuance of common and preferred stock to raise money for its business operations and plans.  This situation raises the doubt of the Companys ability to continue as a going concern.



Managements plans with regard to this matter are as follows:



-

Raise interim and long term finance in addition to its present equity line to assist expansion-development and acquisition programs for oil and gas, corporate operations, and for the purpose of building on the current revenue base.

-

Obtain asset based project finance or develop joint ventures to fund work programs for oil and gas projects domestically and overseas.

-

Pursue formation of strategic alliances with more firmly established peer groups to assist acquisition activities.

-

Initiate search for experienced oil and gas personnel to add to our staff.



3. Net Loss per Share



The Company applies SFAS No. 128, Earnings per Shareto compute net loss per share. In accordance with SFAS No. 128, basic net loss per share has been computed based on the weighted average of common shares outstanding during the years. Diluted net loss per share gives the effect of outstanding common stock equivalents in the form of warrants, convertible preferred stock, and convertible debentures.



The effects on net loss per share of the common stock equivalents, however, are not included in the calculation of net loss per share since their inclusion would be anti-dilutive.



Net loss per common share has been computed as follows:



|                         |   |             |  |   |            
|------------------------ | - | ----------- |  | - | -----------
|Net loss                 | $ | (636,417)   |  | $ | (768,720)  
|                         |   |             |  |   |            
|Total shares outstanding |   | 399,388,946 |  |   | 258,173,350
|                         |   |             |  |   |            
|Weighted average         |   | 396,191,615 |  |   | 246,915,962
|                         |   |             |  |   |            
|Loss per share           | $ | 0.00        |  | $ | 0.00       

4. Common and Preferred Stock Transactions

During the first quarter of 2007, the Company issued 4,021,500 shares of common stock to pay down the equity line of credit.



During the quarter ended March 31, 2006, the Company issued 4,000,000 shares to an investor and received proceeds of $100,000.



8



---



During the quarter ended March 31, 2006, the Preferred C shareholders converted their shares to 20,250,000 shares of common stock.  There is no more preferred shares outstanding as of March 31, 2006.



During the quarter ended March 31, 2006, the Company issued 13,009,850 shares of common stock to pay down the equity line of credit received in the last quarter of fiscal 2005.



5. Fixed Assets- Net



The following is a detailed list of fixed assets:



|                              |           |           |           |   |          
|----------------------------- | --------- | --------- | --------- | - | ---------
|                              | 31-Mar-07 |           | 31-Dec-06
|                              |           |           |           |   |          
|Well lease                    | $         | 475,000   |           | $ | 475,000  
|Well equipment                |           | 403,732   |           |   | 403,732  
|Computer equipment & software |           | 63,676    |           |   | 63,676   
|Office equipment              |           | 19,056    |           |   | 19,056   
|Improvements & furniture      |           | 30,166    |           |   | 30,166   
|Accumulated depreciation      |           | (157,268) |           |   | (122,761)
|                              |           |           |           |   |          
|Net property & equipment      | $         | 834,362   |           | $ | 868,869  



6. Equity Credit Line



In fiscal year 2005, the Company entered into an equity line credit agreement with a financing company that committed to purchase up to $25,000,000 of the Companys stock over the course of the following 36 months. The Company has borrowed $5,495,000 against the equity line through March 31, 2007. Under the terms of the equity line agreement, the Company is obligated to pay the face value of the equity line notes in cash or an equivalent amount in common stock. Materially all of the assets of the Company secure the equity line notes. The notes have an effective interest rate of approximately 20%.



7.  Issuance of Warrants



During the quarter ended March 31, 2006, the Company issued 5,500,000 warrants to purchase common stock to consultants and recorded an expense of $5,407.



A list of warrants outstanding is as follows:



|                                 |             |  |                |      |             |     
|-------------------------------- | ----------- |  | -------------- | ---- | ----------- | ----
|                                 |             |  | Wgtd Avg       |      | Wgtd Years 
|                                 | Amount      |  | Exercise Price |      | to Maturity
|                                 |             |  |                |      |             |     
|Outstanding at December 31, 2005 | 40,062,000  |  | $              | 0.37 |             | 3.24
|                                 |             |  |                |      |             |     
|Issued                           | 5,500,000   |  |                |      |             |     
|Exercised                        | (4,000,000) |  |                |      |             |     
|Expired                          | -           |  |                |      |             |     
|Outstanding at December 31, 2005 | 41,562,000  |  | $              | 0.40 |             | 2.72
|                                 |             |  |                |      |             |     
|Issued                           | -           |  |                |      |             |     
|Exercised                        | -           |  |                |      |             |     
|Expired                          | -           |  |                |      |             |     
|Outstanding at March 31, 2007    | 41,562,000  |  | $              | 0.40 |             | 2.44





9



---



8. Debt



The following is a detail of debt outstanding:



|                                                                                          |           |           |           |   |          
|----------------------------------------------------------------------------------------- | --------- | --------- | --------- | - | ---------
|                                                                                          | 31-Mar-07 |           | 31-Dec-06
|                                                                                          |           |           |           |   |          
|The following is a listing of the Company's outstanding debt                              |           |           |           |   |          
|                                                                                          |           |           |           |   |          
|Convertible debentures                                                                    | $         | 695,389   |           | $ | 533,418  
|Equity credit line notes payable at effective interest of 20%                             |           | 4,832,873 |           |   | 4,345,605
|Unsecured advances from shareholders and officers of the Company- interest imputed at 20% |           | 203,005   |           |   | 168,052  
|                                                                                          |           |           |           |   |          
|Total Company debt                                                                        | $         | 5,731,267 |           | $ | 5,047,075



9. Income Tax Provision



|                                                                                                                                                      |           |           |           |   |          
|----------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------- | --------- | - | ---------
|Provision for income taxes is comprised of the following:                                                                                             | 31-Mar-07 |           | 31-Mar-06
|                                                                                                                                                      |           |           |           |   |          
|Net loss before provision for income taxes                                                                                                            | $         | (636,417) |           | $ | (768,720)
|                                                                                                                                                      |           |           |           |   |          
|Current tax expense:                                                                                                                                  |           |           |           |   |          
|Federal                                                                                                                                               | $         | -         |           | $ | -        
|State                                                                                                                                                 |           | -         |           |   | -        
|Total                                                                                                                                                 | $         | -         |           | $ | -        
|                                                                                                                                                      |           |           |           |   |          
|Less deferred tax benefit:                                                                                                                            |           |           |           |   |          
|Timing differences                                                                                                                                    |           | (530,774) |           |   | (300,350)
|Allowance for recoverability                                                                                                                          |           | 530,774   |           |   | 300,350  
|Provision for income taxes                                                                                                                            | $         | -         |           | $ | -        
|                                                                                                                                                      |           |           |           |   |          
|A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows: |           |           |           |   |          
|                                                                                                                                                      |           |           |           |   |          
|Statutory U.S. federal rate                                                                                                                           |           | 34%       |           |   | 34%      
|Statutory state and local income tax                                                                                                                  |           | 10%       |           |   | 10%      
|Less allowance for tax recoverability                                                                                                                 |           | -44%      |           |   | -44%     
|Effective rate                                                                                                                                        |           | 0%        |           |   | 0%       
|                                                                                                                                                      |           |           |           |   |          
|Deferred income taxes are comprised of the following:                                                                                                 |           |           |           |   |          
|                                                                                                                                                      |           |           |           |   |          
|Timing differences                                                                                                                                    | $         | 530,774   |           | $ | 300,350  
|Allowance for recoverability                                                                                                                          |           | (530,774) |           |   | (300,350)
|Deferred tax benefit                                                                                                                                  | $         | -         |           | $ | -        



Note:  The deferred tax benefits arising from the timing differences begin to expire in fiscal year 2021 and may not be recoverable upon the purchase of the Company under current IRS statutes.





10



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10. Issuance of Convertible Debentures



During the quarter ended March 31, 2007, the Company issued a convertible debenture with a face value of $140,000 to pay an incentive fee to the holder of the equity credit line as a part of the increased borrowing. The debenture is convertible into common stock at 75% of the lowest bid price of the common stock for the fifteen days preceding conversion.  The debenture has no interest rate and matures in March 2008.  As a result of the issuance of the debentures, the Company allocated $68,871 to a beneficial conversion feature.



The balance of the convertible debt is as follows:



|                                          |           |           |           |   |          
|----------------------------------------- | --------- | --------- | --------- | - | ---------
|                                          | 31-Mar-07 |           | 31-Dec-06
|                                          |           |           |           |   |          
|Convertible debt payable                  | $         | 1,069,375 |           | $ | 929,375  
|Unallocated beneficial conversion feature |           | (373,986) |           |   | (395,957)
|                                          |           |           |           |   |          
|Net convertible debt payable              | $         | 695,389   |           | $ | 533,418  



ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION



Overview



You should read the following discussion and analysis in conjunction with the Consolidated Financial Statements in Form 10-KSB, and the other financial data appearing elsewhere in this Form 10-QSB Report.



The information set forth in Managements Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among others (i) expected changes in the Companys revenues and profitability, (ii) prospective business opportunities and (iii) the Companys strategy for financing its business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as believes, anticipates, intends or expects. These forward-looking statements relate to the plans, objectives and expectations of the Company for future operations. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this report should not be regarded as a representation by the Company or any other person that the objectives or plans of the Company will be achieved. In light of these risks and uncertainties, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. The foregoing review of important factors should not be construed as exhaustive. The Company undertakes no obligation to release publicly the results of any future revisions it may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.



The Company is currently focused on oil and gas activities in the following areas: i) Development of our domestic interests acquired initially in Wyoming for production of oil and primarily natural gas, and ii) pursuit of and potential completion of projects overseas in Central Asian and European countries. Further, the Company has been making presentations to asset-based lenders and other financial institutions for the purpose of expanding and supporting our growth potential by development of our oil and gas operations in 2007 with a goal to increase our revenue base and cash flow.; however, the Company makes no guarantees and can provide no assurances that it will be successful in these endeavors.



One of the ways our plans for growth could be altered if current opportunities now available become unavailable.





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The Company would need to identify, locate, or address replacing current potential acquisitions or strategic alliances with new prospects or initiate other existing available projects that may have been planned for later stages of growth and the Company may therefore not be ready to activate. This process can place a strain on the Company. New acquisitions, business opportunities, and alliances, take time for review, analysis, inspections and negotiations. The time taken in the review activities, is an unknown factor, including the business structuring of the project and related specific due diligence factors.



General



The Company historically derived its revenues primarily from retail sales of oil and gas field inventory equipment, service, and supply items primarily in the southern Arkansas area, and from acquired interests owned in revenue producing oil wells, leases, and equipment located in Olney, Young County, Texas. The Company disposed of these two segments of operations in 2003. The Company acquired a marine vessel sales brokerage and charter business, International Yacht Sales Group, Ltd. of Great Britain in December 2003 later disposing of its operations in late 2005. We accounted for the segments as discontinued operations in the consolidated statements of operations for the related fiscal year.





Effective July 1, 2004, we acquired Firecreek Petroleum, Inc., and its subsidiary Firecreek Romania, SRL. Firecreek was focused on exploration and development specializing in the niche market of rehabilitation and enhancement of existing oilfields through modern management and state of the art technological applications internationally. Throughout 2004 and 2005, the Firecreek unit developed relationships, pursued and prepared for potential acquisitions in Romania and Libya, and through its strategic alliances developed other potential projects for acquisition located in Russia, Romania, Kazakhstan, Ukraine, and Turkey. Firecreeks business was subsequently restructured in the first quarter of 2006 (see further discussion and updates located in the Section titled (the Business) in Form 10KSB, filed April 16, 2007, incorporated herein by reference).



Effective November 15, 2005, Firecreek purchased a 50% undivided interest in leases, wells, equipment, gas and to a lesser extent oil reserves, and other rights, located in Green River Basin, Sweetwater County, Wyoming. The project is listed under the prospect name Ten Mile Draw (TMD). We have commenced with gas production in the first and second quarters of 2006, began a workover program for a third well in July of 2006 operations recently completed in March of 2007, and we are contemplating one or more additional drilling programs in the TMD area (see further update discussion listed under Item 5-Other Information herein).



The Company expects to incur an increase in operating expenses during the balance of this year from commencing the described activities related to its plans for the Company and Firecreek oil and gas operations. The amount of net losses and the time required for the Company to reach and maintain profitability are uncertain at this time. There is a likelihood that the Company will encounter difficulties and delays encountered with business subsidiary operations, including, but not limited to uncertainty as to development and the time and timing required for the Companys plans to be fully implemented, governmental regulatory responses to the Companys plans, fluctuating markets and corresponding spikes, or dips in our products demand, currency exchange rates between countries, acquisition and development pricing, related costs, expenses, offsets, increases, and adjustments. There can be no assurance that the Company will ever generate significant revenues or achieve profitability at all or on any substantial basis.



On December 1, 2003, through our exchange merger acquisition with International Group Holdings, Ltd., as amended, we acquired a commercial and private leisure marine vessel sales brokerage and charter business, International Yacht Sales Group, Ltd. of Great Britain (IYSG) and all of its divisions, as a wholly owned subsidiary of the Company. On December 31, 2005, the Company elected to dispose of IYSG. The results of operations for this segment is included in loss from discontinued operations in the consolidated statements of operations for fiscal 2005.





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General Statement:  Factors that may affect future results:



With the exception of historical information, the matters discussed in Managements Discussion and Analysis or Plan of Operation contain forward looking statements under the 1995 Private Securities Litigation Reform Act that involve various risks and uncertainties.  Typically, these statements are indicated by words such as anticipates, expects, believes, plans, could, and similar words and phrases.  Factors that could cause the companys actual results to differ materially from managements projections, forecasts, estimates and expectations include but are not limited to the following:



-

Inability of the company to secure additional financing.

-

Unexpected economic changes in the United States.

-

The imposition of new restrictions or regulations by government agencies that affect the Companys business activities.



To the extent possible, the following discussion will highlight the Companys business activities for the quarters ended March 31, 2007 and March 31, 2006.



Results of Operations



Three months ended March 31, 2007 vs. three months ended March 31, 2006.



There was $33,883 in revenues generated from the Companys gas lease production activities for Q1 2007 compared to $7,980 in revenues in Q1 2006. Revenues commenced mid March 2006 from the first of two workover wells completed and on production in the Ten Mile Draw project in southern Wyoming. Operating costs were $29,905 in the first quarter of 2007 and $6,647 in the first quarter of 2006, producing gross profits of $3,978 and $1,333, respectively. Of the 2006 operating costs, $4,849.95 was a non recurring expense.



General and administrative expense for Q1 2007 decreased to $457,498 from $466,683 in Q1 2006.  The significant decrease realized from the reorganization consolidating the Firecreek Petroleum Inc. subsidiary offices to Scottsdale Arizona was offset with the increases in Q1 financing costs.





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Detail of general & administrative expenses:



|                                |           |         |           |   |        
|------------------------------- | --------- | ------- | --------- | - | -------
|                                | 31-Mar-07 |         | 31-Mar-06
|                                |           |         |           |   |        
|Advertising & promotion         | $         | 680     |           | $ | 1,038  
|Administration                  |           | 13,703  |           |   | 14,882 
|Bank fees                       |           | -       |           |   | -      
|Relocation                      |           | -       |           |   | 14,800 
|Consulting                      |           | 80,000  |           |   | 62,625 
|Depreciation                    |           | 29,108  |           |   | 8,935  
|Investor incentives/commissions |           | 165,733 |           |   | -      
|Professional fees               |           | 97,715  |           |   | 100,910
|Press releases                  |           | -       |           |   | -      
|Printing                        |           | -       |           |   | -      
|Postage                         |           | -       |           |   | -      
|Rent & storage                  |           | 21,878  |           |   | 25,010 
|Research                        |           | -       |           |   | 83,686 
|Salaries & benefits             |           | -       |           |   | 100,192
|Taxes                           |           | 72      |           |   | 8,110  
|Telephone                       |           | -       |           |   | 15,200 
|Travel costs                    |           | -       |           |   | 31,295 
|Well workover                   |           | 48,609  |           |   | -      
|                                |           |         |           |   |        
|Total                           | $         | 457,498 |           | $ | 466,683
|                                |           | -       |           |   | -      



Consulting fees of $80,000 were incurred during investigations into acquiring profitable business enterprises.



Relocation fees were reduced to $0.00 for the period from $14,800 from the year ago quarter.



Investor incentives/commissions of $165,733 were paid to the holder of the equity credit line for making promissory note loan advances.



Professional fees of $97,715 were incurred in regards to legal costs, accounting, securing financing, and the acquisition of leads and contacts with regard to possible new business ventures.



Rent and Storage of $21,878 was used for office lease expenses in Fort Worth, Texas for the Firecreek Petroleum operations.



Salaries & benefits were reduced to $0.00 from $100,192 in the year ago quarter as a result of consolidation down sizing of the Firecreek Petroleum, Inc. offices to Scottsdale location.



Telephone costs were reduced to $0.00 for the period from $15,200 for the prior period being temporarily paid by Officers and Directors of the Company.



Travel costs during the quarter were reduced to $0.00 from $31,295 from consolidation of efforts to reduce overseas and domestic travel costs.



Well workover costs of $48,609 were paid toward charges related to the Companys interests owned in the Wyoming gas wells.



After deducting general and administrative costs, the Company experienced a loss from operations of $453,520 for the three months ended March 31, 2007 compared to an operating loss of $465,350 for the same period last year.





14



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Interest expense decreased in the three months ended March 31, 2007 to $182,897 compared to $303,370 for the same period last year.  The decrease of interest was due to the amortization of the beneficial conversion feature using the effective interest rate method where most of the amortization, is weighted more to the beginning of the amortization period.



Consulting and professional fees increased approximately $14,180 in Q1 2007 compared to Q1 2006.



Net loss for Q1 2007 was $636,417 or $0.00 per share compared to a loss of $768,720, or $0.00 per share for Q1 2006.



Discussion of Financial Condition:  Liquidity and Capital Resources



At March 31, 2007 cash on hand was $86,647 as compared with $14,955 at December 31, 2006.



At March 31, 2007, the Company had working capital deficit of $5,328,186 compared to a working capital deficit of $5,009,376 at December 31, 2006.  Working capital decreased mainly as a result of operating losses and financing costs.



Total assets at March 31, 2007 were $1,223,372 as compared to $1,203,014 at December 31, 2006.



The Companys total stockholders deficit increased from $4,683,434 at December 31, 2006 to $5,220,343 at March 31, 2007.   Stockholders equity decreased by $636,417 from operating losses in Q1 2007.  In addition, the Company issued 4,021,500 shares of common stock valued at $30,637 as payment against a line of credit.



ITEM 3  CONTROLS AND PROCEDURES



Our Chief Executive Officer who is also our Chief Financial Officer has evaluated as of the last day of the period covered by this report, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 15d-15 under the Securities Exchange Act of 1934).  This evaluation was carried out under the supervision and with the participation of our management, including our principal executive officer and principal financial officer.  Based on this evaluation, this officer has concluded that the design and operation of our disclosure controls and procedures are effective.



There were no changes in the Companys internal control over financial reporting (as defined in Rule f13a-15 under the Securities Act of 1934) during the quarter ended March 31, 2007 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.





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PART II.  OTHER INFORMATION



ITEM 1  LEGAL PROCEEDINGS



None



ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS



Required information has been furnished in Form 8-K filings and other reports, as amended, during the period covered by this Report and additionally as listed and following.



On March 27, 2007, the Company issued convertible debentures with a face value of $140,000, to pay an incentive fee to the holder of the equity credit line. The debentures became convertible at the date of the issuances and mature in March of 2012. The debentures were issued pursuant to an exemption from registration as provided in Section 4(2) of the Securities Act of 1933. For terms of the debentures please see information furnished in Exhibit A to Exhibit 10.1 to our Current Report on Form 8-K filed on March 29, 2007.



For additional information other than that furnished in this section regarding recent sales of unregistered securities please see information listed under RECENT SALES OF UNREGISTERED SECURITIES, and in exhibits and elsewhere contained in Form 10-KSB, filed April 14 2006; Form 10-KSB, filed April 12, 2005, and in our Registration Statement on Form SB-2, and listed exhibits, as amended.



ITEM 3  DEFAULTS UPON SENIOR SECURITIES



None



ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



None



ITEM 5  OTHER INFORMATION



The Company and its Firecreek unit are presently in different stages of review and discussion, gathering data and information, and any available reports on other potential acquisitions in Texas, and other productive regions and areas in the U.S. as well as overseas.



The Company is working towards securing financing to drill three to five new gas wells in its Ten Mile Draw field. The first workover well was on production on March 14, 2006 and the second workover well was on production in April 2006. The third workover 13-9 well was completed in March of 2007 and initially put on production. Recently the 13-9 was taken off production as notified by our operator Newport Oil Corporation for the purpose of removing water and fracing fluid build up and to increase the overall potential for future production.



Total workover and overrun charges attributable to our 50% working interest in the third workover well number 13-9 located in the Ten Mile Draw, Green River Basin, Wyoming; from approximately June-July 2006 through the present totaled $598,422. Of the $598,422 the remaining balance of approximately $226,922 was paid during the first quarter of 2007 operations. The operator for the Companys interests experienced various difficulties during the workover program for the 13-9 including pipe failure during initial frac pressure test procedures, various equipment failures, and other associated area delays and conditions.



Financing for proposed deployment of planned oil and gas operations in several overseas locations is proceeding slowly as international negotiations and due diligence are extremely time consuming.



From time to time Management will examine oil and gas operations in other geographical areas for potential acquisition and joint venture development.





16



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ITEM 6  EXHIBITS



|            |                                                                            
|----------- | ---------------------------------------------------------------------------
|Exhibit No. | Description                                                                
|            |                                                                            
|31.1        | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (3)
|32.1        | Certification Pursuant to 18 U.S.C. SECTION 1350 (3)                       





17



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SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|                    |        |                             
|------------------- | ------ | ----------------------------
|Date:  May 15, 2007 |        | EGPI FIRECREEK, INC.        
|                    |        |                             
|                    |        |                             
|                    |        | /s/ Dennis Alexander        
|                    | By:    | Dennis Alexander            
|                    | Title: | Chairman, President, and CFO













18