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 June 30, 2007



OR



[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



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 [  ]



Indicate by check mark whether registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes [ ] No [x]



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



As of June 30, 2006, the issuer had

417,353,804 shares of its $.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.



Transitional Small Business Disclosure Format:  Yes [ ] No [x]



---



EGPI FIRECREEK, INC.

AND SUBSIDIARIES

f/k/a Energy Producers, Inc.



Form 10-QSB for the Quarter Ended

June 30, 2007





Table of Contents





|        |                                                             |     
|------- | ----------------------------------------------------------- | ----
|        |                                                             |     
|        |                                                             |     
|        | PART 1: FINANCIAL INFORMATION                               | PAGE
|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   | 13  
|Item 3. | Controls and Procedures                                     | 17  
|        | PART II: OTHER INFORMATION                                  |     
|Item 1. | Legal Proceedings                                           | 18  
|Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 18  
|Item 3. | Defaults upon Senior Securities                             | 18  
|Item 4. | Submission of Matters to a Vote of Security Holders         | 18  
|Item 5. | Other Information                                           | 18  
|Item 6. | Exhibits                                                    | 19  
|        | Certifications                                              |     
|        | Signature                                                   | 20  





---

EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Consolidated Balance Sheets

As of June 30, 2007 and December 31, 2006





|                                                                              |                                                                       |    |          |            |              |            |              |            | 
|----------------------------------------------------------------------------- | --------------------------------------------------------------------- | -- | -------- | ---------- | ------------ | ---------- | ------------ | ---------- | 
|                                                                              |                                                                       |    |          |            |              |            | Unaudited    |            | 
|                                                                              |                                                                       |    |          |            |              | 30-Jun-07  |              | 31-Dec-06 
|ASSETS                                                                        |                                                                       |    |          |            |             
|Current assets:                                                               |                                                                       |    |          |            |              |            |             
|Cash                                                                          |                                                                       |    |          |            |              | $1,853,418 |              | $14,955   
|Accounts receivable                                                           |                                                                       |    |          |            | 7,152        |            | 0           
|Deferred charges                                                              |                                                                       |    |          |            | 229,866      |            | 319,190     
|                                                                              | Total current assets                                                  |    |          |            |              | $2,090,436 |              | $334,145  
|Other assets:                                                                 |                                                                       |    |          |            |              |            |              |           
|Deferred charges                                                              |                                                                       |    |          |            | 99,257       |            | 0           
|Fixed assets- net                                                             |                                                                       |    |          |            | 795,267      |            | 868,869     
|                                                                              | Total assets                                                          |    |          |            |              | $2,984,960 |              | $1,203,014
|LIABILITIES AND SHAREHOLDERS' DEFICIT                                         |                                                                       |    |          |            |             
|Current liabilities:                                                          |                                                                       |    |          |            |              |            |             
|Accounts payable & accrued expenses                                           |                                                                       |    | $782,342 |            | $839,373    
|Convertible debentures payable-net                                            |                                                                       |    |          | 171,875    |              | 158,543   
|Equity line notes payable                                                     |                                                                       |    |          | 4,864,440  |              | 4,345,605 
|                                                                              | Total current liabilities                                             |    |          |            | $5,818,657   |            | $5,343,521  
|Advances payable to shareholders                                              |                                                                       |    |          | 217,138    |              | 168,052   
|Convertible debentures payable-net                                            |                                                                       |    |          | 2,001,642  |              | 374,875   
|                                                                              | Total liabilities                                                     |    |          |            |              | $8,037,437 |              | $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 | $0 |          | $0        
|Series B preferred stock, 20 million authorized, par value $0.001,one share   |                                                                       |    |         
|                                                                              | convertible to one common share, no stated dividend, none outstanding | 0  |          | 0         
|Series C preferred stock, 20 million authorized, stated value $.001,one share |                                                                       |    |         
|                                                                              | convertible to ten common shares, no stated dividend                  |    | 0        |            | 0           
|Common stock- $.001 par value, authorized 1,320,000,000 shares,               |                                                                       |    |          |           
|                                                                              | issued and outstanding, 417,353,804 at June 30, 2007 and              |    |          |            |             
|                                                                              | 395,367,446 shares at December 31, 2006                               |    |          | $417,353   |              | $395,367  
|Additional paid in capital                                                    |                                                                       |    |          | 20,563,804 |              | 19,714,669
|Accumulated deficit                                                           |                                                                       |    |          |            | (26,033,634) |            | (24,793,470)
|                                                                              | Total shareholders' deficit                                           |    |          |            | (5,052,477)  |            | (4,683,434) 
|                                                                              | Total Liabilities & Shareholders' Deficit                             |    |          | $2,984,960 |              | $1,203,014
|See the notes to the consolidated financial statements.                      





3



---

EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Consolidated Statements of Operations

For the Six and Three Months Ended June 30, 2007 and June 30, 2006

(unaudited)





|                                                        |                                         |              |         |              |              |              |              |             |            |              |            |             
|------------------------------------------------------- | --------------------------------------- | ------------ | ------- | ------------ | ------------ | ------------ | ------------ | ----------- | ---------- | ------------ | ---------- | ------------
|                                                        |                                         |              |         |              |              | Six Months   |              | Six Months  |            | Three Months |            | Three Months
|                                                        |                                         |              |         |              |              | Unaudited    |              | Unaudited   |            | Unaudited    |            | Unaudited   
|                                                        |                                         |              |         |              |              | 30-Jun-07    |              | 30-Jun-06   |            | 30-Jun-07    |            | 30-Jun-06   
|                                                        |                                         |              |         |              |              |              |              |             |            |              |            |             
|Gross Revenues from sales                               |                                         |              | $80,216 |              | $50,682      |              | $46,333      |             | $42,702   
|Cost of sales                                           |                                         |              |         |              | (86,018)     |              | (34,498)     |             | (56,113)   |              | (27,851)  
|                                                        | Net Revenues from sales                 |              |         | ($5,802)     |              | $16,184      |              | ($9,780)    |            | $14,851     
|General and administrative expenses:                    |                                         |              |         |              |              |              |              |            
|                                                        | General administration                  |              |         | $817,771     |              | $1,100,720   |              | $360,273    |            | $634,037    
|                                                        | Total general & administrative expenses |              | 817,771 |              | 1,100,720    |              | 360,273      |             | 634,037   
|Net loss from operations                                |                                         |              |         | ($823,573)   |              | ($1,084,536) |              | ($370,053)  |            | ($619,186)  
|Other revenues and expenses:                            |                                         |              |         |              |              |              |              |             |           
|                                                        | Interest expense                        |              |         |              | (416,591)    |              | (623,726)    |             | (233,694)  |              | (320,356) 
|Net loss before provision for income taxes              |                                         | ($1,240,164) |         | ($1,708,262) |              | ($603,747)   |              | ($939,542) 
|Provision for income taxes                              |                                         |              | 0       |              | 0            |              | 0            |             | 0         
|Net loss                                                |                                         |              |         |              | ($1,240,164) |              | ($1,708,262) |             | ($603,747) |              | ($939,542)
|Basic & fully diluted net loss per common share:        |                                         |              |         |              |              |              |             
|Loss per share                                          |                                         |              |         | ($0.00)      |              | ($0.01)      |              | ($0.00)     |            | $0.00       
|Weighted average of common shares outstanding:          |                                         |              |         |              |              |              |             
|Basic & fully diluted                                   |                                         |              |         | 403,154,759  |              | 261,697,742  |              | 410,082,378 |            | 278,558,461 
|                                                        |                                         |              |         |              |              |              |              |             |            |              |            |             
|See the notes to the consolidated financial statements.





4



---

EGPI Firecreek, Inc.

(formerly Energy Producers, Inc.)

Unaudited Consolidated Statements of Cash Flows

For the Quarters Ended June 30, 2007 and June 30, 2006

(Unaudited)



|                                                        |                                               |            |           |            |           |              |           |              |          
|------------------------------------------------------- | --------------------------------------------- | ---------- | --------- | ---------- | --------- | ------------ | --------- | ------------ | ---------
|                                                        |                                               |            |           |            |           |              | Unaudited |              | Unaudited
|                                                        |                                               |            |           |            |           |              | 30-Jun-07 |              | 30-Jun-06
|Operating Activities:                                   |                                               |            |           |            |           |              |          
|Net loss                                                |                                               |            |           |            |           | ($1,240,164) |           | ($1,708,262)
|Adjustments to reconcile net loss items                 |                                               |            |           |            |          
|not requiring the use of cash:                          |                                               |            |           |            |           |             
|                                                        | Depreciation expense                          |            |           |            | 73,602    |              | 38,185   
|                                                        | Amortization of beneficial conversion feature |            | 235,637   |            | 177,669  
|                                                        | Consulting expense                            |            |           |            |           | 39,286       |           | 5,407       
|                                                        | Interest expense                              |            |           |            |           | 180,133      |           | 316,057     
|                                                        | Amortization of deferred charges              |            |           | 230,067    |           | 43,320      
|Changes in other operating assets and liabilities :     |                                               |            |           |           
|                                                        | Accounts receivable                           |            |           |            |           | (7,152)      |           | (7,093)     
|                                                        | Accounts payable and accrued expenses         |            |           | (57,031)   |           | 98,024      
|Net cash used by operations                             |                                               |            |           | ($545,622) |           | ($1,036,693)
|Financing Activities:                                   |                                               |            |           |            |           |              |          
|                                                        | Credit equity line                            |            |           |            |           | $435,000     |           | $1,505,000  
|                                                        | Convertible debenture                         |            |           |            | 1,900,000 |              | 0        
|                                                        | Issuance common stock                         |            |           |            | 0         |              | 79,840   
|                                                        | Warrants converted to stock                   |            |           |            | 0         |              | 100,000  
|                                                        | Shareholder advances received (paid)          |            |           | 49,086     |           | 66,409      
|Net cash provided by financing activities               |                                               |            | 2,384,086 |            | 1,751,249
|Net increase (decrease) in cash during the period       |                                               | $1,838,463 |           | $714,556  
|Cash balance at January 1st                             |                                               |            |           | 14,955     |           | 149,962     
|Cash balance at June 30th                               |                                               |            |           | $1,853,418 |           | $864,518    
|Supplemental disclosures of cash flow information:      |                                               |            |           |           
|Interest paid during the period                         |                                               |            |           | $0         |           | $0          
|Income taxes paid during the period                     |                                               |            | $0        |            | $0       
|                                                        |                                               |            |           |            |           |              |           |              |          
|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 Periods Ended June 30, 2007 and June 30, 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    |  | 14,843,500  |  | 14,844   |  | 81,454      |  |               |  | 96,298      
|Shares issued to pay consultants    |  | 7,142,858   |  | 7,143    |  | 32,143      |  |               |  | 39,286      
|Beneficial conversion feature       |  |             |  |          |  | 735,538     |  |               |  | 735,538     
|Net loss for the period             |  |             |  |          |  |             |  | (1,240,164)   |  | (1,240,164) 
|Balance at June 30, 2007- unaudited |  | 417,353,804 |  | $417,353 |  | $20,563,804 |  | ($26,033,634) |  | ($5,052,477)
|                                    |  |             |  |          |  |             |  |               |  |             
|                                    |  | 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            |  | 4,148,514   |  | 4,149    |  | 75,691      |  |               |  | 79,840      
|Conversion of warrants              |  | 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    |  | 43,460,098  |  | 43,460   |  | 981,359     |  |               |  | 1,024,819   
|Beneficial conversion feature       |  |             |  |          |  | 370,001     |  |               |  | 370,001     
|Net loss for the period             |  |             |  |          |  |             |  | (1,708,262)   |  | (1,708,262) 
|Balance at June 30, 2006- unaudited |  | 292,772,112 |  | $292,772 |  | $18,925,335 |  | ($22,255,912) |  | ($3,037,805)

Please see the notes to the consolidated financial statements.





6



---

EGPI Firecreek, Inc.

Unaudited Notes to the Consolidated Financial Statements

For the Six months Ended June 30, 2007 and June 30, 2006



|   |                                                                  
|-- | -----------------------------------------------------------------
|1. | Organization of the Company and Significant Accounting Principles



EGPI Firecreek, Inc. (EGPI or 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.





7



---

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.



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:



|                         |  |             |              |             |             
|------------------------ |  | ----------- | ------------ | ----------- | ------------
|                         |  |             | 30-Jun-07    |             | 30-Jun-06   
|Net loss                 |  |             | ($1,240,164) |             | ($1,708,262)
|Total shares outstanding |  | 417,353,804 |              | 292,772,112
|Weighted average         |  | 403,154,759 |              | 261,697,742
|Loss per share           |  |             | ($0.00)      |             | ($0.01)     



4. Common and Preferred Stock Transactions



During the six months end June 30, 2007, the Company issued 14,843,500 shares of common stock to pay down the equity line of credit.



8



---



During the six months end June 30, 2007, the Company issued 7,142,858 shares of common stock to pay consultants.



During the six months end June 30, 2006, the Company issued 4,000,000 shares to a warrant holder and received proceeds of $100,000.



During the six months end June 30, 2006, the Company issued 4,148,514 shares and received proceeds of $79,840.



During the six months end June 30, 2006, the Preferred C shareholders converted their shares to 20,250,000 shares of common stock.  There are no more preferred shares outstanding.



During the six months end June 30, 2006, the Company issued 43,460,098 shares of common stock to pay down the equity line of credit.



5. Fixed Assets- Net

The following is a detailed list of fixed assets:



|                              |  |  |  |           |  |          
|----------------------------- |  |  |  | --------- |  | ---------
|                              |  |  |  | 30-Jun-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      |  |  |  | (196,363) |  | (122,761)
|Fixed assets- net             |  |  |  | $795,267  |  | $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 June 30, 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. Through June 30, 2007, the Company has paid $1,458,941 of the equity line by issuing 76,415,562 shares of common stock and $343,333 in cash payments.

Materially all of the assets of the Company secure the equity line notes. The notes have an effective interest rate of approximately 20%.



9



---

7.  Issuance of Warrants



A list of warrants outstanding is as follows:



|                                 |  |  |            |            |  |             |      |  |            
|-------------------------------- |  |  | ---------- | ---------- |  | ----------- | ---- |  | -----------
|                                 |  |  |            |            |  |             |      |  | Wgtd Years 
|                                 |  |  |            |            |  | Amount      |      |  | to Maturity
|                                 |  |  |            |            |  |             |      |  |            
|Outstanding at December 31, 2005 |  |  | 40,062,000 |            |  | 3.24       
|Issued                           |  |  |            |            |  | 5,500,000   |      |  |            
|Exercised                        |  |  |            |            |  | (4,000,000) |      |  |            
|Expired                          |  |  |            |            |  | 0           |      |  |            
|Outstanding at December 31, 2006 |  |  | 41,562,000 |            |  | 2.72       
|Issued                           |  |  |            |            |  | 0           |      |  |            
|Exercised                        |  |  |            |            |  | 0           |      |  |            
|Expired                          |  |  |            |            |  | 0           |      |  |            
|Outstanding at June 30, 2007     |  |  |            | 41,562,000 |  |             | 2.17





The majority of the warrants are exercisable at 75% of the common stock market price 20 days prior to conversion.



8. Issuance of Convertible Debentures

During the six months ended June 30, 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.



In June 2007, the Company issued a convertible debenture with a face value of $2,000,000 and received proceeds of $1,900,000. The debenture is convertible into common stock at 75% of the lowest bid price of the common stock for the twenty days preceding conversion with a maximum exercise price of $.015 per share.  The debenture has an interest rate of 12% and matures in June 2014.  As a result of the issuance of the debentures, the Company allocated $666,667 to a beneficial conversion feature.



The balance of the convertible debt is as follows:





|                                          |  |           |  |            |  |           |  |          
|----------------------------------------- |  | --------- |  | ---------- |  | --------- |  | ---------
|                                          |  |           |  |            |  | 30-Jun-07 |  | 31-Dec-06
|                                          |  |           |  |            |  |           |  |          
|Convertible debt payable                  |  |           |  | $3,081,868 |  | $929,375 
|Unallocated beneficial conversion feature |  | (908,351) |  | (395,957) 
|Net convertible debt payable              |  |           |  | $2,173,517 |  | $533,418 





10



---

9. Income Tax Provision

|                                                                                                             |  |           |              |             |              |             |             |   
|------------------------------------------------------------------------------------------------------------ |  | --------- | ------------ | ----------- | ------------ | ----------- | ----------- | --
|                                                                                                             |  | 30-Jun-07 |              | 30-Jun-06  
|Provision for income taxes is comprised of the following:                                                    |  |           |              |            
|Net loss before provision for income taxes                                                                   |  |           | ($1,240,164) |             | ($1,708,262)
|Current tax expense:                                                                                         |  |           |              |             |              |             |            
|Federal                                                                                                      |  |           |              |             |              | $0          |             | $0
|State                                                                                                        |  |           |              |             |              | 0           |             | 0 
|Total                                                                                                        |  |           |              |             |              | $0          |             | $0
|Less deferred tax benefit:                                                                                   |  |           |              |             |              |            
|Timing differences                                                                                           |  |           |              |             | (1,185,311)  |             | (2,489,316)
|Allowance for recoverability                                                                                 |  |           |              | 1,185,311   |              | 2,489,316  
|Provision for income taxes                                                                                   |  |           |              | $0          |              | $0         
|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                                                                                           |  |           |              |             | $1,185,311   |             | $2,489,316 
|Allowance for recoverability                                                                                 |  |           |              | (1,185,311) |              | (2,489,316)
|Deferred tax benefit                                                                                         |  |           |              |             | $0           |             | $0         
|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. Debt



|                                                                                                                      |  |           
|--------------------------------------------------------------------------------------------------------------------- |  | ----------
|The following is a listing of the Company's outstanding debt at June 30, 2007:                                        |  |           
|                                                                                                                      |  |           
|Convertible debentures  :                                                                                             |  |           
|Matures in November and December 2010, no interest, exercisable at 75% of the lowest bid 15 days preceding conversion |  | $348,929  
|Matured in April 2007, no interest, exercisable at 75% of the lowest bid 15 days preceding conversion                 |  | 163,722   
|Matures in November 2011, no interest, exercisable at 75% of the lowest bid 15 days preceding conversion              |  | 173,725   
|Matures in March 2012, no interest, exercisable at 75% of the lowest bid 15 days preceding conversion                 |  | 90,029    
|Matures in June 2014, 12% interest, exercisable at 75% of the lowest bid 15 days preceding conversion                 |  | 1,397,112 
|Total convertible debentures                                                                                          |  | $2,173,517
|                                                                                                                      |  |           
|Equity line of credit:                                                                                                |  |           
|Matured in September 2006, effective interest of 18.55%                                                               |  | $1,086,803
|Matured in November 2006, effective interest of 22.12%                                                                |  | 1,488,215 
|Matured in December 2006, effective interest of 22.12%                                                                |  | 280,204   
|Matured in April 2007, effective interest of 22.12%                                                                   |  | 581,603   
|Matures in December 2007, effective interest of 17.34%                                                                |  | 955,590   
|Matures in March 2008, effective interest of 25.68%                                                                   |  | 472,025   
|Total equity line of credit                                                                                           |  | 4,864,440 
|Unsecured advances to shareholders and officers of the                                                                |  |           
|Company- interest imputed at 20%                                                                                      |  | 217,137   
|Total Debt                                                                                                            |  | $7,255,095



11



---



11. Commitments and Contingencies



The Companys creditor has not enforced the provisions for default on the debt noted in Note 10 at June 30, 2007.  By the equity agreement, the Company is contingently liable for approximately $1,623,000 in default penalties in the event the penalty provisions are enforced by the creditor.



12. Subsequent Event



On July 9, 2007, the Company acquired certain tracts of land and leases located in Knox County, Texas, known as the Fant Ranch Unit for $1,538,704.52 including wells, leases and equipment and oil in the tanks owned by the seller at June 30, 2007.



On August 3, 2007, the Company entered into a Letter Agreement with Star Energy Corporation relating to the purchase and sale of all of the Companys rights to and interest in certain projects in Ukraine and received 2,100,000 shares of Stars restricted Common Stock and one hundred thousand dollars ($100,000) in cash upon execution of the Agreement.



12



---



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 in Wyoming in late 2005 for production of primarily natural gas, and Texas that is subsequent to the period of this report in the third quarter of 2007 operations, for production of oil (see other discussion herein), 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.



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.





13



---

Effective July 1, 2004, we acquired Firecreek Petroleum, Inc., and its subsidiary Firecreek Romania, SRL., together (Firecreek) which is a separate wholly owned subsidiary of the Company. 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).



On July 9, 2007, Firecreek Petroleum, Inc. entered into an Assignment and Bill of Sale with Ward Energy LP sale acquiring a 100% working interest in certain tracts of land, leases, and equipment located in Knox County, Texas, more commonly known as the Fant Ranch Unit. The effective date for the transaction is July 1, 2007. There are currently 17 wells on line producing and selling oil. The Companys initial plans are to complete take over processes, then to determine the best method and work program to increase production for several or all of the 17 wells in the field, and thereafter to consider adding to the existing well count by bringing several non producing wells in the field back on line (see further update discussion listed under Item 5-Other Information herein).



On August 3, 2007, The Company through its wholly owned subsidiary Firecreek Petroleum, Inc. concluded a transaction for the sale of all rights to development works and projects historically developed in the Ukraine.



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 are included in loss from discontinued operations in the consolidated statements of operations for fiscal 2005.



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:





14



---

- 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 June 30, 2007 and June 30, 2006.



I. Results of Operations



Six months ended June 30, 2007 vs. six months ended June 30, 2006.



There was $80,216 in revenues generated from the Companys gas lease production in the first six months of 2007 activities compared to $50,682 in same six months 2006. Operating costs of $86,018 produced a net loss of $5,802 in the first six months of 2007 compared to a net profit of $16,184 in 2006. The decrease in net profits during the period was attributable to softening of regional gas prices, and increased expenses related to start up for the third well, 13-9, which did not contribute significantly to revenue. Well operating costs for the first six months of 2007 were $86,018.



General and administrative expense for the first 6 months of 2007 decreased to $817,771 compared to $1,100,720 in 2006 a decrease of 25.71%. Most of the decrease was due to further consolidation of costs related primarily to well workover costs, and subsidiary expense.



|                                             |  |           |  |           
|-------------------------------------------- |  | --------- |  | ----------
|Detail of general & administrative expenses: |  |          
|                                             |  | 30-Jun-07 |  | 30-Jun-06 
|                                             |  |           |  |           
|Advertising & promotion                      |  | $1,837    |  | $1,574    
|Administration                               |  | 11,532    |  | 47,044    
|Bank fees                                    |  | 0         |  | 0         
|Relocation                                   |  | 0         |  | 0         
|Consulting                                   |  | 255,715   |  | 111,194   
|Depreciation                                 |  | 46,843    |  | 38,185    
|Investor incentives/commissions              |  | 90,067    |  | 43,320    
|Professional fees                            |  | 313,631   |  | 225,505   
|Press releases                               |  | 0         |  | 0         
|Printing                                     |  | 0         |  | 0         
|Postage                                      |  | 0         |  | 0         
|Rent & storage                               |  | 44,093    |  | 58,530    
|Research                                     |  | 0         |  | 84,404    
|Salaries & benefits                          |  | 0         |  | 118,609   
|Taxes                                        |  | 4,827     |  | 9,598     
|Telephone                                    |  | 617       |  | 23,012    
|Travel costs                                 |  | 0         |  | 56,366    
|Well workover                                |  | 48,609    |  | 283,379   
|                                             |  |           |  |           
|Total                                        |  | $817,771  |  | $1,100,720



Administration used $11,532 for corporate parent costs related to printing, office, postage, transfer agent, filing agent, accounting, and other costs.



Consulting fees of $255,715 were incurred during investigations into acquiring profitable business enterprises, corporate assistance, and advisory services.



15



---



Investor incentives in the amount of $90,067 were costs incurred relative to the issuance of new debt.



Professional fees of $313,631 were incurred in regards to legal costs, accounting, securing financing, administrative, and the acquisition of leads and contacts with regard to possible new business ventures.



Rent and storage of $44,093 was used for office lease expenses in Fort Worth, Texas for the Firecreek Petroleum operations.



Well development includes additional overage costs of $48,609 related to workover programs on the third well for our oil and gas interests held in the Ten Mile Draw project in Sweetwater County, Wyoming.



After deducting general and administrative costs, the Company experienced a loss from operations of $823,573 for the six months ended June 30, 2007 compared to an operating loss of $1,084,536 for the same period last year, a decrease of 24%.



Interest expense decreased in the six months ended June 30, 2007 to $416,591 compared to $623,726 for the same period last year. Most of the decreases in interest is due to the change in financial instrument in the first 6 months of 2007.



Professional fees increased by $88,126 in the first six months of 2007 compared to the same period in 2006.



Net loss for the six months in 2007 was $1,240,164 or ($0.00) per share compared to a loss of $1,708,262 or ($0.01) per share for six months in 2006.



Three months ended June 30, 2007 vs Three months ended June 30, 2006



The Company had gross revenues of $46,333 for the three months ended June 30, 2007 as compared with revenues of $42,702 for the same period in 2006. Net loss for the period was ($9,780) compared to $14,851 for the same period 2006.



General and administrative expense for the three months ended June 30, 2007 was $360,273 compared to $634,037 for the same period 2006.



Interest expense decreased to $233,694 in the three months ended June 30, 2007 compared to $320,356 in the same period 2006.



Discussion of Financial Condition: Liquidity and Capital Resources



At June 30, 2007 cash on hand was $1,853,149 as compared with $14,955 at December 31, 2006.



At June 30, 2007 the Company had working capital deficit of $3,728,231 compared to a working capital deficit of $5,009,375 at December 31, 2006. Working capital deficit is mainly a result of operating losses.



Total assets at June 30, 2007 were $2,984,960 compared to $1,203,014 at December 31, 2006.



The Companys total stockholders deficit increased $369,043 from December 31, 2006 to $5,052,477 at June 30, 2007. Stockholders equity decreased from operating losses for the first six months in 2007. In addition, the Company issued 14,843,500 shares of common stock valued at $96,298 as payment against a line of credit, and 7,142,858 shares of common stock valued at $39,286 as payment for services rendered.





16



---

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.





17



---

PART II. OTHER INFORMATION



ITEM 1 - LEGAL PROCEEDINGS



Please see information contained in Form 8-K filed on July 27, 2007, incorporated herein by reference.



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, and or additional producing oil and gas wells, equipment, and reserves with revenues.



In the 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. In the second quarter 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.



On July 9, 2007, EGPI Firecreek, Inc., through its wholly owned subsidiary, Firecreek Petroleum, Inc. (collectively, the Company) entered into an Assignment and Bill of Sale with Ward Energy LP (Ward) relating to the purchase and sale of certain tracts of land and leases located in Knox County, Texas, more commonly known as the



18



---

Fant Ranch Unit (the Fant ranch). Pursuant to the Assignment, the Company paid to Ward the total of One Million Five Hundred Thousand ($1,500,000) dollars for the leases and equipment plus Thirty Eight Thousand Seven Hundred Four and 52/100 ($38,704.52) dollars, which is the amount agreed to be paid to Ward for oil in the tanks owned by Ward at June 30, 2007 as verified by a P1 report filed with the Railroad Commission of Texas. For additional information please see information and exhibit to a Report on Form 8-K filed on July 16, 2007, incorporated herein by reference.



On August 3, 2007, The Company through its wholly owned subsidiary Firecreek Petroleum, Inc. concluded a transaction for the sale of all rights to development works and projects historically developed in the Ukraine. Through the agreement the purchaser has acquired the rights to acquire licenses, permits and permissions to explore for and extract oil, natural gas or other natural resources on the territories referenced in the agreement. For additional information please see information and exhibits to a Report on Form 8-K filed on August 13, 2007, incorporated herein by reference.



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.





ITEM 6 - EXHIBITS



EXHIBIT

DESCRIPTION



31.1

Certification Pursuant to Section 301 of the Sarbanes-Oxley Act of 2002

32.1

Certification Pursuant to 18 U.S.C. SECTION 1350





19



---

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.



|                      |        |                                                | 
|--------------------- | ------ | ---------------------------------------------- | 
|                      |        | EGPI FIRECREEK, INC.                           | 
|                      |        |                                                | 
|Date: August 13, 2007 |        | /s/ Dennis Alexander                           | 
|                      | By:    | Dennis Alexander                               | 
|                      | Title: | Chairman, Principal Executive Officer, and CFO | 







20