UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                   FORM 10-KSB

            ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                      For the year ended December 31, 2004
                        Commission File Number 000-33481


                           ECOLOCLEAN INDUSTRIES, INC.
                 (Name of small business issuer in its charter)


             Nevada                                              65-1060612
(State or other jurisdiction of                              (I. R. S. Employer
 incorporation or organization)                              Identification No.)


                   2242 South Hwy #83, Crystal City, TX 78839
                     (Address of principal executive office)

                                 (830) 374-9100
                           (Issuer's Telephone Number)

        Securities Registered Pursuant of Section 12(b) of the Act: None

           Securities Registered Pursuant of Section 12(g) of the Act:
                         Common Stock, $0.001 Par Value



Check  whether the issuer (1) 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 [ ]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B in this form, and no disclosure will be contained, to the best of
registrant's   knowledge,   in  definitive   proxy  or  information   statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment of
this Form 10-KSB. [ ]

The issuer had  operating  revenues of $921,810 for the year ended  December 31,
2004.

This report contains a total of _ pages. The Exhibit Index appears on page __.

As of December 31, 2004,  there were  37,900,664  shares of the issuer's  common
stock  outstanding.  The aggregate market value of the 20,282,964  shares of the
issuer's voting stock held by non-affiliates was $6,591,963 based on the low bid
price on that date as reported by the NASD OTC Electronic  Bulletin  Board.  The
sum excludes  the shares held by officers,  directors,  and  stockholders  whose
ownership  exceeded 10% of the outstanding  shares at December 31, 2004, in that
such persons may be deemed  affiliates  of the Company.  This  determination  of
affiliate  status  is not  necessarily  a  conclusive  determination  for  other
purposes.





<PAGE>

                           Ecoloclean Industries, Inc.
                                   FORM 10-KSB
                                December 31, 2004

                                                                            Page
PART I...................................................................

ITEM 1.  Description of Business.........................................
ITEM 2.  Description of Property.........................................
ITEM 3.  Legal Proceedings...............................................
ITEM 4.  Submission of Matters to Vote of Security Holders...............

PART II..................................................................

ITEM 5.  Market for Common Equity, Related Stockholder Matters and Small
            Business Issuer Purchases of Equity Securities...............
ITEM 6.  Management's Discussion and Analysis or Plan of Operation.......
ITEM 7.  Financial Statements............................................
ITEM 8.  Changes In and Disagreements with Accountants on Accounting and
         Financial Disclosure............................................
ITEM 8A. Controls and Procedures.........................................
ITEM 8B. Other Information...............................................


PART III.................................................................

ITEM 9.   Directors, Executive Officers, Promoters, and Control
           Persons: Compliance with Section 16(a) of the Exchange Act....
ITEM 10.  Executive Compensation.........................................
ITEM 11.  Security Ownership of Certain Beneficial Owners and Management
             and Related Stockholder Matters.............................
ITEM 12.  Certain Relationships and Related Transactions.................
ITEM 13.  Exhibits ......................................................
ITEM 14.  Principal Accountant Fees and Services.........................
SIGNATURES...............................................................






                                       1
<PAGE>

                                     PART I

ITEM 1.   Description of Business.

(a)      Overview

Ecoloclean Industries, Inc. formerly known as SailTech International,  Inc. (the
"Company") was incorporated on September 16, 1998 under the laws of the State of
Nevada as Argonaut  Resources Ltd. On December 15, 2000, the Company changed its
name to  Sailtech  International  Inc.  to reflect its  business  objectives  of
becoming  an aluminum  yacht  manufacturer.  Sailtech  was a  development  stage
enterprise  which had just initiated  operations as a manufacturer  of a line of
aluminum yachts and work vessels using a proprietary  software  technology which
aided in the  design  and  construction  of  aluminum  boats.  We had four yacht
manufacturing contracts, none of which were completed. We conducted our business
through  two wholly  owned  subsidiary  corporations,  organized  in Florida and
British Columbia, Canada.

On  December  31,  2002,   Sailtech  ceased  operations  of  its  limited  yacht
manufacturing  business.  We disposed  of our  subsidiary  companies  in British
Columbia, Canada and Florida.

On January 10, 2003, we acquired all of the issued and outstanding capital stock
of  Ecoloclean,  Inc.,  a Texas  corporation.  Ecoloclean's  principal  business
operations  are are  conducted  through its  subsidiaries,  World  Environmental
Technologies, Inc. ("WET"), a Louisiana corporation,  Ecoloclean of Texas, Inc.,
a Texas corporation and Reliant Drilling Systems, Inc., a Louisiana corporation.

On December 15,  2003,  we filed a  certificate  of amendment to our articles of
incorporation changing our corporate name to Ecoloclean Industries, Inc. We also
(1) increased our authorized  common stock capital from 50,000,000  shares,  par
value,  $0.001 per share to 100,000,000  shares, par value $0.0001 per share and
(2) increased our authorized  preferred shares from 1,000,000 shares,  par value
$0.01 per share to 10,000,000, par value $0.001 per share.

We operate five corporations.  Ecoloclean Industries, Inc. owns two wholly owned
subsidiaries: (1) Ecoloclean, Inc., a Texas corporation and (2) Reliant Drilling
Systems, Inc., a Louisiana corporation.  Ecoloclean,  Inc. owns two wholly owned
subsidiaries,   (1)  World   Environmental   Technologies,   Inc.,  a  Louisiana
corporation and (2) Ecoloclean of Texas, Inc., a Texas corporation.

(b)      Historical Background of Waste Water

The United States faces growing need for quality water supplies.  Population and
industrial growth demands clean water.

Until recent times, the water supply was considered to be limitless. Major water
users withdrew their water from natural sources such as wells, aquifers,  rivers
and lakes.  Public  utilities  and  municipal  waste water  (sewer)  authorities
treated their used water and discharged it into rivers and lakes.  Mines,  paper
mills,  refineries,  and chemical plants also  discharged  their waste water, in
many  cases,  directly  into the same rivers and lakes from which water would be
drawn for human use.

Soon after World War II, the effect of this  unregulated  discharge  and limited
treatment  of  waste  water  on  land  and  water  sources  was   recognized  as
unacceptable  by public interest groups and  governmental  authorities.  Efforts
were begun to remediate polluted sites. Laws were enacted to prevent unregulated
discharge of waste waters into the environment. These remediation and prevention
efforts have improved water quality throughout the United States.

We believe that water quality standards will become stricter. Large water users,
at great expense,  have installed elaborate treatment systems in order to comply
with governmental water quality laws. However,  even after the implementation of
water  treatment laws,  many treated waters are still being  discharged  without
meeting  all of the  governmental  standards.  In many  states,  water users who
discharge waters that do not comply with minimum  discharge  standards are being
assessed  large  monetary  surcharges.  Small users,  having to pay high monthly
surcharges  without  the  capital or room to install or upgrade  existing  water
treatment  systems,  are  faced  with  the  possibility  of  closing  operations
facilities.

Processes for treating waste water are extensive.  The chemistry and engineering
for  treating  wastewater  is well  developed.  Many  different  procedures  and
processes  are  in  use  for  treating  different  types  of  contamination  and
pollution.  Equipment is  manufactured  by numerous  companies to process  waste
water  streams  from as little as a few  gallons a day to millions of gallons an
hour.  There are technologies  and equipment  designed to remove  impurities and
contaminates  ranging form ordinary ground water bacteria and particles to heavy
metal  ions.  Water  treatment  plants  can be as small as the  household  water
conditioners to municipal treatment systems covering hundreds of acres.



                                       2
<PAGE>

THE ELECTROCOAGULATION SYSTEM

Most waste  water  contaminants  are held in  solution  by  electrical  charges.
Bacteria,  algae, oils, clays, carbon black,  silica,  phosphate,  nickel, lead,
chromates and other ions are examples charged particle contaminants. Waste water
contaminants  must  be  removed  from  the  water.  The  neutralization  of  the
electrical  charges and subsequent  precipitation  of these  contaminants can be
achieved  by chemical  or  electrochemical  alteration.  Most  commercial  water
treatment systems use chemical  additives.  Our electro coagulation process is a
non-chemical additive electrochemical system.

In today's environment, adding chemicals to contaminated waste water is becoming
less  acceptable  due to  increasingly  stringent  regulations.  Solid  residues
(sludges) are being classified as hazardous materials and the required treatment
levels are more  difficult and expensive to achieve.  In the future,  we believe
that there will be a significant  increase in the use of  nonchemical  dependent
systems  such as the EC System.  Different  chemicals  are  required for various
contaminants.  Contaminant  concentrations  are critical and must be  constantly
monitored and balanced.  These  additives do not remain with the purified  water
(exception: chlorine) but combine with and must be disposed of with the "sludge"
that is removed from the waste water stream.  Under current  regulations many of
these  sludges are  considered  hazardous and must be handled  accordingly.  For
every pound of chemical additive an additional pound of sludge must be disposed.
This cost of disposal must be added to the cost of chemicals.

Electrochemical  water  treatment  methods  have been used for many years.  High
voltages  are used to  produce  an  electromagnetic  field  which  disrupts  the
electrochemical properties of the charged contaminant particles. This allows the
contaminants to precipitate or fall out of the waste water.  Until recent times,
these  electrochemical  water treatment systems showed good contaminate  removal
compared with the chemical additive precipitation methods, however, high capital
and operational  costs coupled with lower flow rates have restricted  widespread
commercial use.

The electro coagulation "EC" process does not use chemical additives. We believe
that our EC  process,  with  lower  operating  costs,  higher  flow  rates and a
reduction of sludge  disposal costs will move our EC process to the forefront of
water treatment technologies.

The electro  coagulation  system  uses  equipment  and methods  that result from
revisions of old  technologies  and principles of  electrochemistry  and physics
made possible by our computerized microprocessor control panel. The "EC" unit is
capable of treating liquid solutions  containing a wide variety of contaminants,
including heavy metals,  oil and grease,  suspended and dissolved  solids,  most
salts as well as bacteria and algae, without the use of chemicals.

The "EC" unit places an electrical charge in the waste fluid which  destabilizes
suspended material electrochemically and causes the coagulation of the dissolved
and suspended  contaminants.  This coagulation or flocculation is similar to the
precipitation  stimulated  by chemical  additives,  but the altered  contaminant
particles  tend to be larger (100 microns vs. 25 to 50 microns) and more stable.
This flocculated  contaminants are removed from the waste Stream by conventional
equipment.

OVERVIEW OF WATER TREATMENT USING ELECTROCOAGULATION

When the term "we" is used, it means Ecoloclean Industries,  Inc. by and through
its subsidiaries,  Ecoloclean,  Inc., World  Environmental  Technologies,  Inc.,
Reliant Drilling Systems, Inc. and Ecoloclean of Texas, Inc.

We have  designed  and  manufactured  three  portable EC Units which are mounted
within or on  enclosed  trailers.  The waste  water is pumped  into the EC unit,
electrochemically processed and discharged on-site.

The water flows through a series of engineered  electrodes within a cell while a
controlled  electric  current  is  applied to the waste  water.  The  electrical
current  energizes the solution  creating a magnetic  field within the cell. Our
system is designed to optimize  over twenty  variables  in order to  effectively
transfer electrical energy to the continuously flowing contaminated waste water.
Water contaminated mixtures created by the electro coagulation process, separate
into an organic molecule floating layer known as flocculent,  a mineral sediment
and clean  water.  This  separation  occurs  within  minutes  of  treatment  and
conventional  equipment  may be used to extract  the clean  water.  The  Electro
coagulation  process  has  successfully  treated  animal and human  waste  water
removing chemical and biological contaminants.  Tests confirm the destruction of
coli form bacteria, flagellates, helminthes, eggs, infective parasite larvae and
enteric viruses.



                                       3
<PAGE>

Our  EC  process  utilizes  proprietary  and  patented   technologies   applying
electrochemical  energies to the waste  water  stream.  Contaminant  laden water
moves through an electric field where the treatment is accomplished by:

         o        Ionization
         o        Electrolysis
         o        Free radical formation
         o        Electromagnetic fields

System Capabilities:

         o        Removes  heavy  metals as  oxides  which  will  pass  Toxicity
                  Characteristics Leaching Procedures (TCLP)
         o        Removes suspended and colloidal solids
         o        Breaks oil emulsions in water
         o        Removes fats, oils and grease in water
         o        Removes complex organic materials
         o        Destroys and removes bacteria, viruses and cysts
         o        Processes multiple contaminants

Key Applications:

         o        Ground water cleanup
         o        Process rinse and wash water
         o        Potable water
         o        Sewage treatment
         o        Cooling towers
         o        Radioactive isotope removal
         o        Pretreatment    for   reverse    osmosis,    ultra-filtration,
                  nano-filtration, and photocatlytics
         o        Water reuse resulting in zero discharge
         o        Metal recovery
         o        Influent quality water control
         o        Industrial waste water

Benefits:

         o        Capital cost significantly less than alternative technologies
         o        Operating   cost    significantly    less   than   alternative
                  technologies
         o        Low power requirements
         o        Generally no chemical additions
         o        Metal oxide formation passing TCLP
         o        Low maintenance
         o        Minimal operator attention
         o        Handles a wide variation in the waste stream contaminants
         o        Consistent and reliable results
         o        Sludge minimization
         o        Treats multiple contaminants

Operations and Services

Industrial  and  commercial  businesses  produce  various  types  of  wastewater
(including hydrocarbon  contaminated water from oil field operations,  that must
be disposed of as required by federal,  state and local regulations.  Similarly,
oil and gas  exploration  and  production  companies  produce  liquid waste from
drilling and other  operations  that must be disposed of complying  with federal
and state  regulations.  We  propose  to  process  the  liquid  waste and remove
contaminants  and dispose of the treated  liquid waste as required by applicable
regulations.

Oilfield Waste

Oilfield waste consists  primarily of petroleum-based  and water-based  drilling
fluids  (which  contain oil,  grease,  chlorides and heavy  metals),  as well as
cuttings, saltwater, work over and completion fluids, production pit sludges and
soil containing these materials. Under Louisiana and Texas state regulations, if
oilfield  waste  cannot be  processed  for  discharge or disposed of at the well
where it is  generated,  it must be  transported  to a licensed  oilfield  waste
processing or disposal facility.

Competitive Conditions

Competition  is  intense  within  oilfield  waste  water  processing   industry.
Competition  will be based  primarily  on proximity  to  collection  operations,
collection and processing  fees charged and quality of service.  With respect to
certain  waste  streams,  such as  oilfield  waste,  we will  compete  with  the
generators of these waste streams, who continually evaluate the decision whether
to use internal disposal methods or to utilize a liquid waste management company


                                       4
<PAGE>

such as us. We will compete with numerous companies, both large and small, which
are able to provide  one or more of the  environmental  services  offered by us.
Many of these companies will have greater financial,  human and other resources.
However, we believe that the type of waste management, treatment, processing and
remediation services which we will provide will give us a competitive  advantage
with respect to certain of our more specialized competitors. We believe that our
treatment  processes will offer cost saving alternatives to the more traditional
remediation and disposal methods offered by our competitors.

We  believe  that  there  are  certain  barriers  to entry in the  liquid  waste
industry.   These  barriers  include  the  need  for  specialty   machinery  and
facilities;  licenses,  permits and trained personnel necessary to operate these
facilities.

Our Specialized Equipment

We have manufactured three portable EC Units. These are portable units which are
constructed in 28-foot enclosed trailers.

Employees

Ecoloclean  Industries,  Inc. has two  part-time  employee  officers,  Royis and
Michael Ward. During 2004,  Ecoloclean of Texas, Inc. had nine employees,  World
Environmental  Technologies had eleven employees,  and Reliant Drilling Systems,
Inc. had fifteen employees.  No employee was subject to a collective  bargaining
agreement.

Governmental Permits and Licenses

World  Environmental  Technologies,   Inc.  ("WET")  has  obtained  a  Louisiana
statewide Water Discharge  Permit for its Electro  Coagulation  ("EC") treatment
system.  This permit enables us to treat waste water in Louisiana such as, bilge
water, wash water from oil field equipment, industrial waste water, storm water,
sanitary water and wash down water.

Waste management  companies are subject to extensive,  evolving and increasingly
stringent  federal,  state and local  environmental  laws and regulations.  Such
federal,  state and local  environmental  laws and  regulations  govern will our
activities   regarding  the  treatment,   storage,   processing,   disposal  and
transportation  of wastes.  We will be required to obtain and maintain  permits,
licenses  and/or  approvals  in order to conduct our  proposed  waste  treatment
business  activities.  Failure to obtain and maintain permits or approvals would
have a material  adverse effect on us, our  operations and financial  condition.
The permits and  licenses  have a term  ranging  from five (5) to ten (10) years
and, provided that the Company maintains a reasonable level of compliance, renew
with  minimal  effort  and cost.  Historically,  there  have been no  compelling
challenges to the permit and license  renewals.  In the future, if we expand our
operations,  we may be  required  to obtain  additional  approvals,  licenses or
permits,  the  there  can be no  assurance  that we will be able to do so.  Such
permits  and  licenses,  however,  represent  a  potential  barrier to entry for
possible competitors.

General License Agreement

Ecoloclean,  Inc.  acquired a General License Agreement by assignment from World
Environmental  Technologies,  Inc. on September 12, 2002.  The license grants an
industry exclusive  perpetual worldwide right and license under a U.S. patent to
manufacture,  use,  market,  sell,  lease or otherwise  dispose of product units
based on, or relating to the invention  contained in U.S. Patent No.  6,238,546,
issued to Louis A. Kneiper,  Gary A. Tipton and Daniel G. Noyes on May 29, 2001.
The product  units are the Electro  coagulation  units.  The license is industry
specific  and applies only to the  petroleum  exploration,  petroleum  chemical,
transportation and refining industries.  Ecoloclean,  the licensee,  is excluded
from marketing,  selling, leasing or otherwise disposing of product units to the
paper industry,  paint pigment  industry and to all industries in Mexico and the



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<PAGE>

Orient. Ecoloclean is obligated to pay royalties to the patent owner on an event
basis.  For product  units of 100  gallons-per-minute  (gpm),  or less which are
manufactured  by the licensee,  Ecoloclean is obligated to pay $3,000 each.  For
product  units  of  capacities  exceeding  100  gpm,  Ecoloclean  must  pay  $30
multiplied  by  the  gpm  design  capacity.  Additionally,  for  the  use of the
technology,  Ecoloclean  must  pay a  monthly  royalty  of 2%  of  gross  income
generated by product units. The General License  Agreement and Assignment to the
General  License  Agreement are attached to this Current  Report as Exhibits 3.1
and 3.2, respectively.

Insurance

We believe we maintain  insurance  coverage  adequate for our needs and which is
similar to, or greater than, the coverage  maintained by other  companies of our
size in the industry.  There can be no  assurances,  however,  that  liabilities
which may be incurred by us will be covered by our  insurance or that the dollar
amount of such liabilities  which are covered will not exceed our policy limits.
We are required by EPA regulations to carry environmental  impairment  liability
insurance providing coverage for damages on a claims-made basis in amounts of at
least $1 million per occurrence and $2 million per year in the aggregate.

Regulation

General Our proposed  business  operations  will be affected  both  directly and
indirectly by governmental  regulations,  including  various federal,  state and
local pollution control and health and safety programs that are administered and
enforced by regulatory  agencies.  These  programs are applicable or potentially
applicable to one or more of our existing operations.

Federal Regulation

The primary U.S. federal statutes  affecting our business are summarized  below:
The Clean Water Act. Our proposed activities will be subject to the requirements
of the Clean  Water Act and  comparable  state  statutes  and  federal and state
enforcement of these regulations. The Clean Water Act regulates the discharge of
pollutants  into waters of the United States.  The Clean Water Act establishes a
system of standards,  permits and  enforcement  procedures  for the discharge of
pollutants  from  industrial  and  municipal  wastewater  sources.  The law sets
treatment standards for industries and wastewater  treatment plants and provides
federal grants to assist municipalities in complying with the new standards.  In
addition to requiring permits for industrial and municipal  discharges  directly
into the  waters  of the  United  States,  the  Clean  Water  Act also  requires
pretreatment of industrial wastewater before discharge into municipal systems.

The  Clean  Water  Act  gives  the  Environmental  Protection  Agency  (EPA) the
authority  to  set  pretreatment  limits  for  direct  and  indirect  industrial
discharges.  In 2001, the EPA adopted new technology-based  effluent limitations
guidelines for waste  treatment  facilities  that treat or recover  hazardous or
nonhazardous  industrial  waste or  wastewater  received  from off-site and then
discharge  pollutants into U.S.  waters or publicly  operated  treatment  works.
Although the guidelines are based on particular technologies, the new guidelines
do not require a facility to use these technologies.  Individual  facilities may
meet the  requirements  using whatever types of technologies and process changes
they choose.

The Clean  Water  Act also  prohibits  certain  discharges  of oil or  hazardous
substances  and  authorizes  the  federal  government  to remove or arrange  for
removal of such oil or hazardous  substances.  In addition,  the Clean Water Act
requires the adoption of the National  Contingency Plan to cover removal of such
materials.  Under the Clean  Water  Act,  the owner or  operator  of a vessel or
facility  may be  liable  for  penalties  and  costs  incurred  by  the  federal
government in responding to a discharge of oil or hazardous substances.

The Clean  Water Act also has a  significant  impact  on the  operations  of the
oilfield waste  customers.  EPA Region 6, which includes our proposed  treatment
market,  continues  to  issue  new  and  amended  National  Pollution  Discharge
Elimination System general permits further limiting or restricting substantially
all discharges of produced  water from the Oil and Gas  Extraction  Point Source
Category into waters of the United States.  The combined  effect of all of these
permits  closely  approaches a "zero  discharge"  standard  affecting all waters
except those of the Outer Continental Shelf.

Resource Conservation Recovery Act (RCRA). RCRA is the principal federal statute
governing hazardous and solid waste generation, treatment, storage and disposal.
RCRA and state  hazardous  waste  management  programs  govern the  handling and
disposal of hazardous  waste. The EPA has issued  regulations  pursuant to RCRA,


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<PAGE>

and states have promulgated  regulations  under comparable state statutes,  that
govern  hazardous  waste  generators,  transporters  and owners and operators of
hazardous waste treatment,  storage or disposal  facilities.  These  regulations
impose detailed operating,  inspection,  training and emergency preparedness and
response  standards  and  requirements  for closure,  financial  responsibility,
manifesting  of  wastes,  record-keeping  and  reporting,  as well as  treatment
standards for any hazardous wastes intended for land disposal.  Facilities which
treat  and  dispose  of  oilfield  waste are  exempt  from  classification  as a
RCRA-regulated  waste. At various times in the past, proposals have been made to
rescind the exemption that excludes  oilfield waste from regulation  under RCRA.
The repeal or modification of this exemption by  administrative,  legislative or
judicial  process  would  require us to change our method of doing  business and
could have a material adverse effect on our business,  results of operations and
financial  condition.  There is no assurance  that we would be able to adapt our
operations or that we would have the capital resources  available to do so. RCRA
may indirectly  affect our proposed  operations by  restricting  the disposal of
certain liquid wastes and sludges in landfills.  This  restriction  may increase
demand for waste treatment services.

CERCLA.  The Comprehensive  Environmental  Response,  Compensation and Liability
Act, as amended in 1986 ("CERCLA"),  provides for immediate response and removal
actions  coordinated  by the EPA for releases of hazardous  substances  into the
environment and authorizes the government, or private parties, to respond to the
release or threatened release of hazardous  substances.  The government may also
order  persons  responsible  for the release to perform any  necessary  cleanup.
Liability  extends  to the  present  owners  and  operators  of  waste  disposal
facilities  from which a release  occurs,  persons  who owned or  operated  such
facilities  at the time the  hazardous  substances  were  released,  persons who
arranged  for  disposal  or   treatment  of  hazardous   substances   and  waste
transporters who selected such facilities for treatment or disposal of hazardous
substances.  CERCLA has been  interpreted  to create  strict,  joint and several
liability  for the cost of removal and  remediation,  other  necessary  response
costs and  damages  for  injury  to  natural  resources.  If our  operations  or
facilities become  responsible for the release or improper disposal of hazardous
substances, we could incur CERCLA liability.  Presently, we have no intention to
treat hazardous wastes.

The Clean  Air Act.  The Clean Air Act  provides  for  federal,  state and local
regulation of emissions of air pollutants into the atmosphere.  Any modification
or  construction  of a facility with regulated air emissions must be a permitted
or  authorized  activity.  The Clean Air Act  provides  for  administrative  and
judicial  enforcement  against  owners and  operators of  regulated  facilities,
including substantial penalties. In 1990, the Clean Air Act was reauthorized and
amended,  substantially  increasing  the scope and  stringency  of the Clean Air
Act's  regulations.  Compliance with the Clean Air Act is not expected to have a
material adverse effect on our proposed business operations.

State and Local Regulations

Our  proposed  waste  water  processing  operations  will be  subject  to direct
regulation by a variety of state and local  authorities.  We will be required to
obtain processing,  wastewater  discharge and air quality permits from state and
local   authorities  to  operate   facilities  and  to  comply  with  applicable
regulations  concerning,  among other things,  the  generation  and discharge of
odors and wastewater.

Order 29-B of the Louisiana  Department of Natural Resources  contains extensive
rules regarding the generation, processing, storage, transportation and disposal
of  oilfield  waste.  Under Order 29-B,  on-site  disposal of oilfield  waste is
limited and subject to stringent guidelines.  If these guidelines cannot be met,
oilfield waste must be transported  and disposed of off-site in accordance  with
the  provisions  of Order 29-B.  Moreover,  under Order 29-B,  most, if not all,
active waste pits (a typical on-site  disposal method used by inland  generators
of oilfield  waste) must be closed or  modified  to meet  regulatory  standards;
however,  full  enforcement of this portion of Order 29-B has been  deferred.  A
number of  amendments  to Order 29-B were  adopted  effective as of November 20,
2001.  Compliance  with  these  amendments  is not  expected  to have a material
adverse  effect  on  our  proposed  business  operations.   The  Texas  Railroad
Commission  has  also  adopted  detailed  requirements  for the  management  and
disposal of oilfield  waste.  Permits  issued by state  regulatory  agencies are
required for each oilfield waste treatment  facility  operating within Louisiana
and Texas.  We will have to perform  tests  before  acceptance  of any  oilfield
waste,  as well as during  and after  treatment  to ensure  compliance  with all
regulatory requirements.



                                       7
<PAGE>

In the future,  other  states in which we may  operate,  have their own laws and
regulations that may be more strict than comparable federal laws and regulations
governing  hazardous and nonhazardous  waste disposal,  water and air pollution,
releases and cleanup of hazardous  substances and  liabilities for such matters.
Our future proposed  operations are likely to be subject to many, if not all, of
these laws and regulations. In addition, states and localities into which we may
expand,  by acquisition or otherwise,  may now or in the future have regulations
with positive or negative effects on us.

Factors Influencing Future Results and Accuracy of Forward-Looking Statements

In the normal course of our business, in an effort to help keep our stockholders
and the public informed about our operations,  we may from time to time issue or
make  certain  statements,  either in  writing  or  orally,  that are or contain
forward-looking  statements,  as  that  term  is  defined  in the  U.S.  federal
securities  laws.  Generally,  these  statements  relate  to  business  plans or
strategies,  projected or  anticipated  benefits or other  consequences  of such
plans or strategies, projected or anticipated benefits from acquisitions made by
or to be made by us, or projections involving anticipated revenues,  earnings or
other  aspects  of  operating  results.   The  words  "may,"  "will,"  "expect,"
"anticipate," "believe," "estimate," "continue",  "plan" and similar expressions
are intended to identify  forward-looking  statements.  We caution  readers that
such  statements  are not  guarantees  of future  performance  or events and are
subject to a number of factors  that may tend to  influence  the accuracy of the
statements and the  projections  upon which the statements are based,  including
but not limited to those discussed below. As noted elsewhere in this report, all
phases of our  proposed  operations  are  subject to a number of  uncertainties,
risks and other  influences,  many of which are outside of our control,  and any
one of which, or a combination of which,  could materially affect the results of
our  operations  and whether  forward-looking  statements  made by us ultimately
prove to be accurate.

ITEM 2.   Description of Property

         Royis Ward,  President  of  Ecoloclean  Industries,  Inc. is  providing
executive  office  space,  located in Crystal City,  Texas,  to our company on a
rent-free basis.

         Our wholly owned subsidiary,  World Environmental  Technologies,  Inc.,
owns real  property  located at 950 Birdsong  Rd.,  LaFayette,  Louisiana.  This
property  supports its operations and those of Reliant  Drilling  Systems,  Inc.
This  property  consists of 3950 square foot office and shop building and a 5360
square foot open air covered work space.

         Ecoloclean of Texas, Inc., another subsidiary, rents office and storage
yard premises located in Beaumont, Texas.

ITEM 3.  Legal Proceedings

         None.

ITEM 4.  Submission of Matters to Vote of Security Holders

         During the fourth  quarter of 2004, no matters were submitted to a vote
of our security holders.

                                     PART II

ITEM 5.  Market for Common Equity and Related Stockholder Matters

Common Stock:

         Our  common  stock  trades  Over-the-Counter  (OTC)  on the  Electronic
Bulletin  Board under the symbol ECCI.  Table 1. sets forth the high and low bid
information  for the past  two  years.  These  quotations  reflect  inter-dealer
prices,  without retail  mark-up,  mark-down or commission and may not represent
actual transactions. These data provided by NASDAQ.


                                       8
<PAGE>
<TABLE>
<CAPTION>

Table 1.

Bid Information

Fiscal Quarter Ended                High             Low


December 31, 2004                   1.04             0.29
September 30, 2004                  1.15             0.28
June 30, 2004                       1.30             0.55
March 31, 2004                      2.35             1.06

December 31, 2003                   1.40             0.40
September 30, 2003                  0.50             0.20
June 30, 2003                       0.32             0.20
March 31, 2003                      0.25             0.20

         According  to our  records,  the  Company had  approximately  50 record
shareholders  of our common  stock as of December  31, 2004  holding  37,900,664
common  shares.   This  number  of  shareholders  does  not  include  individual
beneficial shareholders whose shares may be held in their brokers' street name.

Dividends and Dividend Policy

         There  are no  restrictions  imposed  on the  Company  which  limit its
ability to declare or pay  dividends on its common  stock,  except as limited by
state corporation law. During the year ended December 31, 2004, no cash or stock
dividends  were  declared  or  paid  and  none  are  expected  to be paid in the
foreseeable future.

Securities Authorized for Issuance under Equity Compensation Plans

The following table  summarizes our equity  compensation  plan information as of
December 31, 2004.  Information  is included for equity  compensation  plans not
approved by our security holders.

Table 1.

Equity Compensation Plan Information

------------------------ ------------------------ ---------------------- ------------------------

Plan Category            Number of Securities to  Weighted-average       Number of Securities
                         be issued upon exercise  Exercise price of      remaining available for
                         of outstanding options,  outstanding options,   future issuance under
                         warrants and rights      warrants, and rights   equity compensation
                                                                         plans (excluding
                                                                         securities reflected in
                                                                         column (a)
<S>                      <C>                      <C>                    <C>
------------------------ ------------------------ ---------------------- ------------------------
                                   (a)                      (b)                    (c)
------------------------ ------------------------ ---------------------- ------------------------
Equity Compensation
Plans approved by
security holders                  None                      None                   None
------------------------ ------------------------ ---------------------- ------------------------
Equity Compensation
Plans not approved by          5,000,000 (1)             $ 0.55                  4,800,000
security holders

------------------------ ------------------------ ---------------------- ------------------------
Total                          5,000,000                 $ 0.87                  4,800,000
------------------------ ------------------------ ---------------------- ------------------------
</TABLE>

(1) On July 8, 2004, the Company adopted the 2004 Non-Qualified  Stock Grant and
Option Plan. The Plan was registered  with the SEC on Form S-8 on July 23, 2004.
The Plan reserved  5,000,000  shares.  The Plan is  administered by our Board of



                                       9
<PAGE>


Directors.  Directors, officers, employees,  consultants,  attorneys, and others
who provide services to our Company are eligible participants.  Participants are
eligible to be granted  warrants,  options,  common  stock as  compensation.  We
issued 200,000 shares for legal services under the Plan during 2004.


ITEM 6.  Management's Discussion and Analysis or Plan of Operation


Overview and Plan of Operation

Background

During  the  quarter  ended  December  31,  2004,  Ecoloclean  Industries,  Inc.
("ECCI"), had gross operating revenues of $350,072,  which were generated by its
Louisiana  subsidiary,  Reliant Drilling Systems,  Inc.  ("RDS"),  and its Texas
subsidiary, Ecoloclean Of Texas, Inc. ("ECOT").

Current Operations

A.  Industrial Field Services

ECOT has been engaged in providing  industrial  maintenance  services  including
dredging  waste-filled  ponds and lagoons and cleaning piping,  brew kettles and
frac tanks.

Revenues of $132,668 were billed  during  ECOT's five months of 2004  operations
with a  resultant  net  loss of  $285,651.  Lower  than  expected  sales  level,
continuing  competitive market conditions and insufficient margins combined with
the operating loss indicated above  ultimately led to  management's  decision to
close ECOT's operations during March 2005.

Shortly  thereafter,  the  Company  executed a Letter of Intent to sell the ECOT
equipment  assets and customer  contracts and list. The sale was completed April
18, 2005,  with an effective  date of April 1, 2005. The sale price was $120,000
payable over a one year period.  Book value of the assets sold was approximately
$42,000 resulting in a gain on the transaction of $78,000.


B.  Drilling Support for Oil Exploration & Production Companies

RDS has specialized in providing  drilling  support  services  including  solids
controls programs to oil and gas production and exploration companies.

RDS had 2004  revenues of $718,025  and an  operating  loss of  $280,091.  These
operating  losses along with continued  pricing  pressures  which caused reduced
margins in addition to high overhead costs led to management's  decision to also
close RDS's operations  during February  although a number of equipment  rentals
continued in the first quarter.

Shortly after  management's  decision,  the Company began selling certain of its
equipment  assets which were utilized by this  subsidiary.  Most of these assets
were  sold  by  the  end  of  the  first  quarter  2005.   Total  proceeds  were
approximately  $243,000,  which  resulted in a loss of $49,000 from these sales.
Sales efforts for the remaining equipment to be sold are continuing.

C. Industrial and Exploration Liquid Waste Remediation Services

World  Environmental  Technologies,  Inc. ("WET"),  a wholly owned subsidiary of
Ecoloclean,  Inc., has utilized its Louisiana  statewide Water Discharge  Permit
and its patented Electro  Coagulation  ("EC") treatment  systems to aggressively
market it services for oil field and industrial liquid waste remediation.  These
efforts have resulted in WET acquiring  Master Service  Agreements  from several
Refinery  Groups and  Petroleum  Operators,  which it is  waiting to  implement.
However, at this time there are no pending contracts or orders.



                                       10
<PAGE>

D.  Agricultural Clean Up

Ecoloclean, Inc. ("ECI"), a wholly owned subsidiary of the Company, continues to
devote  efforts to the Dairy  Industries  as it  pertains  to the  animal  waste
created by cows, swine and chickens. Recently, during the first quarter of 2005,
ECI formed an alliance with another  company in this field.  By combining our EC
Units  technology  with that of our new partner,  we were  successfully  able to
demonstrate  a  ninety-nine  percent plus (99% +)  phosphate  removal from dairy
waste.

During the second quarter of 2005, we will be performing  another  demonstration
for  approximately two hundred (200) dairy farmers,  representatives  from Texas
A&M University, American Dairy Association, Texas Farm Bureau, the EPA and other
interested parties.

Based on the test results from the initial  demonstration,  we expect to be able
to offer the dairy industry along with swine and chicken producers a much needed
solution to their waste disposal problems.

E.  New Development

ECCI  has  obtained  the  Worldwide  Exclusive  Rights  for the  patented  Coale
Separator  through  an  agreement  with  Coale's  Environmental   Systems,  Inc.
("Coale").  As previously announced on June 2, 2004, ECCI entered into a General
Revenue   Sharing   Agreement  with  Coale.   The  new  license   agreement  and
international  marketing  rights  will  allow  ECCI the  opportunity  to market,
manufacture,  install and  commercialize  the  inventions and to operate and use
such process apparatus,  machinery and devices to remove contaminants from fuels
used in combustion engines using fewer than five (5) gallons of fuel per minute.
The  exclusive  rights are  inclusive of two patents  currently in place and any
future related  patents,  improved or  applications.  This  acquisition  will be
developed and marketed under ECCI's WET subsidiary.

The Coale  Separator  (a.k.a.  "Diesel Pure Unit")  decreases and  substantially
eliminates  contaminants  in diesel fuel.  It is designed to operate as a mobile
fuel-scrubbing unit that reduces abrasive sediments and corrosive degradation by
removing contaminants such as water, oxidation, dirt, sand and sludge. The Coale
Separator  effectively  separates  these liquid and solid  particles from diesel
fuel,  thereby allowing only purified fuel to reach  combustions  engines.  This
device is easily installed without any modifications to the existing engine.

This process  increases  horsepower  and engine  efficiency by burning a cleaner
fuel.  The Coale  Separator  is effective  for use with diesel  fuel,  gasoline,
kerosene,  hydraulic oil  transmission  fluid and JP8 jet fuel. In addition,  it
extends filter life resulting in measurable cost savings. Other benefits include
a reduction of fuel system problems, broken injector tips, excessive engine wear
and power losses,  thereby  improving  overall engine  performance.  The Company
anticipates  the  potential  customer  base  will  include   owner/operators  of
combustion engines,  including,  but not limited to,  offshore/onshore  drilling
rigs, tugboats and transportation departments of government agencies.

During the first quarter, production, marketing and sales efforts were initiated
for our Diesel Pure Unit. In addition, a website has been established explaining
the capabilities of the Diesel Pure Unit.

We have place several units with potential end-users for testing periods varying
between one week and one month.  Initial reports have been favorable.  We expect
to be in contact with potential distributors in addition to end-users during the
second quarter of 2005.

Financial Considerations

Currently,  there are  insufficient  revenues  and  resources  to offset  annual
operating overhead, which is now projected to be approximately $750,000,  taking
into  consideration  management's  decision  not  to  offer  solids-control  and
industrial field services after  mid-February and mid-March 2005,  respectively.
Until the  Company  obtains the amount of working  capital  required to meet its
operating overhead, it will be necessary to continue to call upon the investment
community and/or the Company's officers and directors for financial assistance.

During the fourth quarter,  the Company's officers provided $155,251 in loans to
the Company.  All of the funds advanced  during the fourth quarter were utilized
to offset  operating  overhead  expenses.  The  officers  have not  indicated  a
willingness to continue providing funds during 2005 in amounts,  commensurate to
the $1,166,439  advanced during 2004. Efforts are ongoing to obtain funding from
sources  outside of the Company.  At this time, the Company has not received any
financing commitments although certain initiatives are ongoing.


                                       11
<PAGE>

Going Concern

The Independent auditors' report contains language indicating that the financial
statements  have been  prepared on a going  concern  basis,  which  contemplates
realization of assets and  liquidation of liabilities in the ordinary  course of
business. The Company has continuously incurred losses from operations and has a
significant  accumulated deficit. The appropriateness of using the going concern
basis is dependent upon the Company's ability to obtain additional  financing or
equity  capital  and,  ultimately,  to  achieve  profitable  operations.   These
conditions  raise  substantial  doubt  about its  ability to continue as a going
concern.  The  financial  statements do not include any  adjustments  that might
result from the outcome of this uncertainty.

It is the  Company's  belief that it will  continue to incur losses for at least
the next six months,  and as a result will require additional funds from debt or
equity  investments  to meet  such  needs.  Without  realization  of  additional
capital, it would be unlikely for the Company to continue as going concern.  The
Company  anticipates  that its officers  will  contribute a portion of the funds
needed  to  satisfy  the cash  needs  of the  Company  for the next six  months.
However,  there can be no assurances to that effect,  as the Company has limited
revenues and the  Company's  need for capital may change  dramatically  if it is
successful  in acquiring a new  business.  If the Company  cannot  obtain needed
funds,  it may be  forced to  curtail  or cease its  activities.  To meet  these
objectives,  management's plans are to (i) raise capital by obtaining  financing
through private placement efforts; (ii) issue common stock for services rendered
in lieu of cash  payments  and (iii)  obtain  loans from  officers to the extent
possible.

The Company's future ability to achieve these objectives cannot be determined at
this time. The accompanying  financial statements do not include any adjustments
that  might  result  from the  outcome  of this  uncertainty  and  should not be
regarded as typical for normal operating periods.

Conclusion

Although the Company expended  substantial  financial resources to establish all
three of its field service  operations,  the expected results were not achieved.
Accordingly,  as  indicated  above,  two of our field  service  operations  were
discontinued during the first quarter of 2005 and their assets have been, or are
being, liquidated.

The Company is concentrating its efforts on the marketing and sales of its Coale
Separator and liquid waste  remediation  services along with the  development of
its Agricultural Clean-Up Program. In addition, the Company is investigating new
opportunities related to its area of interest.

As stated herein,  all future activities of the Company will be dependent on its
ability to obtain additional funding in the near future.

RESULTS OF OPERATIONS

REVENUES:  The Company reported revenues of $921,810 for the year ended December
31, 2004 as compared  with  $329,845  revenues  for the year ended  December 31,
2003.  The  increased  revenue  was due to  increased  revenues  from our solids
control subsidiary and our recently activated environmental clean-up subsidiary.

TOTAL COSTS AND EXPENSES: Total costs and expenses increased from $1,124,268 for
the year ended  December 31, 2003 to $3,660,892  for the year ended December 31,
2004.

OPERATING  EXPENSES:  Operating  expenses  increased  from $169,917 for the year
ended  December 31, 2003 to $529,870 for the year ended  December 31, 2004.  The
increase  of  $378,072  was  primarily  due to  continuation  of  ramping up our
infra-structure/  support  activities  in  anticipation  of  increased  business
activities.

SELLING, GENERAL AND ADMINSTRATIVE EXPENSES: Selling, general and administrative
expenses  increased  from  $606,610  for the year  ended  December  31,  2003 to
$2,150,043  for the year ended December 31, 2004. The increase of $1,543,433 was



                                       12
<PAGE>

primarily  due to  increased  sales  expense  including  demo and testing  costs
incurred in our efforts to obtain long-term contacts, increased consulting fees,
increased legal fees and additional management and administrative salaries as we
seek to expand our customer base.  $901,713 of the increase was due to issuances
of common  stock for  consulting  fees -  ($443,625),  legal fees -  ($363,500),
investor public relations - ($44,000),  financing costs - ($15,000) and employee
stock bonuses - ($35,588).

NET LOSS FROM OPERATIONS: The pretax loss increased from $(794,423) for the year
ended December 31, 2003 to $(2,739,082) for the year ended December 31, 2004, an
increased  loss of  $(1,944,659),  an increase  of 344.8%.  Diluted net loss per
common share increased 266.7% to $(0.08). The net loss per share calculation for
the year ended  December 31, 2004 included an increase in actual and  equivalent
shares outstanding.

The non-cash  component of the increased loss was $901,713 as noted in the above
discussion of selling, general and administrative expenses.

LIQUIDITY  AND CAPITAL  RESOURCES:  Capital  expenditures  during the year ended
December 31, 2004 totaled  $571,834 as compared with $331,006 for the year ended
December 31, 2003.

The  increase of $240,828  consists of capital  asset  purchases of $480,785 for
equipment needed by our solids control and enviro clean-up  affiliates,  $70,840
for E/C Units  and  related  equipment  construction,  and  $20,209  for  office
furniture,  office equipment,  computers and building  improvements  which total
$571,834 less the increase of $331,006 for the year ended December 31, 2003.

Total debt  increased  from  $1,291,606  at December 31, 2003 to  $3,267,650  at
December  31,  2004.  Total debt as of December  31, 2004 and  December 31, 2003
expressed as a  percentage  of total debt and  shareholder  equity is 268.3% and
223.0% respectively. $1,166,439 of the $1,976,044 increase was due to loans from
the officers of the Company.

FORWARD LOOKING STATEMENTS

Under Rule 175, we caution readers regarding forward looking statements found in
this report and in any other statement made by, or on our behalf, whether or not
in future filings with the Securities and Exchange  Commission.  Forward-looking
statements are statements not based on historical  information  and which relate
to future  operations,  strategies,  financial  results  or other  developments.
Forward looking  statements are necessarily based upon estimates and assumptions
that are inherently  subject to significant  business,  economic and competitive
uncertainties and  contingencies,  many of which are beyond our control and many
of which,  with  respect to future  business  decisions,  are subject to change.
These  uncertainties and contingencies can affect actual results and could cause
actual results to differ  materially from those expressed in any forward looking
statements made by or on our behalf.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK:

The  Company  does  not  issue  or  invest  in  financial  instruments  or their
derivatives for trading or speculative  purposes.  The operations of the Company
are conducted  primarily in the United States,  and, are not subject to material
foreign  currency  exchange risk.  Although the Company has outstanding debt and
related  interest  expense,  market risk of interest rate exposure in the United
States is currently not material.


ITEM 7.       Financial Statements

Index to Financial Statements

Independent Accountant's Report..........................................
Financial Statements
       Balance Sheets....................................................
       Statements of Operations..........................................
       Statements of Stockholder's Equity................................
       Statements of Cash Flows..........................................
       Notes to Financial Statements.....................................


                                       13
<PAGE>

ITEM  8.  Changes  In and  Disagreements  with  Accountants  on  Accounting  and
Financial Disclosure.

         None.

ITEM 8A. Controls and Procedures.

         We maintain  disclosure controls and procedures designed to ensure that
material information related to our company is recorded,  processed,  summarized
and reported within the time periods specified in the SEC rules and forms.

(a)      Evaluation of Disclosure Controls and Procedures.

         As of the end of the period  covered by this report,  we carried out an
evaluation  under the  supervision  and with the  participation  of  management,
including our Principal  Executive Officer and Principal  Financial Officer,  of
the  effectiveness  of the design and operation of our  disclosure  controls and
procedures  (as defined in Rules  13a-15(e) and 15d-15(e)  under the  Securities
Exchange  Act of 1934).  Based upon that  evaluation,  our  Principal  Executive
Officer  and  Principal  Financial  Officer  concluded,  as of the  date of such
evaluation,  that the design  and  operation  of such  disclosure  controls  and
procedures were effective.

(b)      Changes in Internal Control.

         Subsequent   to  the  date  of  such   evaluation   as   described   in
subparagraph(a)above,  there were no changes in our  internal  controls or other
factors that could significantly affect these controls, including any corrective
action with regard to significant deficiencies and material weaknesses.

(c)      Limitations.

         Our management, including our Principal Executive Officer and Principal
Financial  Officer,  does not expect  that our  disclosure  controls or internal
controls over  financial  reporting  will prevent all errors or all instances of
fraud. A control system,  no matter how well designed and operated,  can provide
only reasonable,  not absolute,  assurance that the control system's  objectives
will be met. Further,  the design of a control system must reflect the fact that
there are resource constraints,  and the benefits of controls must be considered
relative to their  costs.  Because of the  inherent  limitations  in all control
systems,  no  evaluation  of controls can provide  absolute  assurance  that all
control  issues and  instances  of fraud,  if any,  within our company have been
detected.  These  inherent  limitations  include the realities that judgments in
decision-making  can be faulty,  and that breakdowns can occur because of simple
error or mistake.  Controls can also be  circumvented  by the individual acts of
some persons,  by collusion of two or more people, or by management  override of
the controls. The design of any system of controls is based in part upon certain
assumptions  about the  likelihood  of future  events,  and any  design  may not
succeed in achieving  its stated goals under all  potential  future  conditions.
Over time,  controls may become  inadequate  because of changes in conditions or
deterioration  in the degree of compliance with policies or procedures.  Because
of the inherent limitation of a cost-effective control system, misstatements due
to error or fraud may occur and not be detected.

ITEM 8B. Other Information.

         None.

                                    PART III



                                       14
<PAGE>

ITEM  9.  Directors,   Executive  Officers,   Promoters,  and  Control  Persons:
          Compliance With Section 16(a) of the Exchange Act

         The  following  table  lists the  names,  ages,  and  positions  of the
executive  officers and  directors  of the Company  that served  during the year
ending  December 31, 2004.  All officers and  directors  have been  appointed to
serve until their successors are elected and qualified.  Additional  information
regarding the business experience,  length of time served in each capacity,  and
other matters relevant to each individual is set forth following the table.

The officers and directors of the Ecoloclean Industries,  Inc., Ecoloclean, Inc.
and Ecoloclean of Texas, Inc. are as follows:

Name                       Age          Position

Royis Ward                 71           President, CEO, Director

Michael Ward               49           Secretary/Treasurer, Director


         Royis Ward has been the  President  and  Director of  Ecoloclean  since
January 2003.  During 2003,  until his resignation on October 1, 2003, he served
as  Secretary/Treasurer  and a Director of Tidelands  Oil & Gas  Corporation,  a
publicly  held  company.  Mr. Ward had served in the  Tideland's  offices  since
October  21,  1998.  He has  been  engaged  in the oil and  gas  industry  since
graduation from Tyler Junior College,  Tyler, Texas in 1952.  Initially,  he was
employed as a  production  superintendent  and  landman for  Coffield & Guthrie,
Inc., a large  independent oil and gas operator and thereafter  placed in charge
of pipeline and drilling operations from 1952-1955. In 1955, he began to develop
oil  and  gas  properties  for his own  account  as an  independent  oil and gas
operator  throughout the southwest until 1962. At that time, he became President
of Omega Petroleum Corporation,  Shreveport, Louisiana. Thereafter, he continued
as an independent oil and gas operator drilling individual in excess of 50 wells
in the South  Texas  Area.  In 1968,  he became the  President  and CEO of Omega
Minerals,  Inc. and was instrumental in acquiring vast oil and gas properties by
drilling, development, and re-acquisitions.  In 1985, Tidelands Oil Corporation,
a Texas  Corporation,  was formed for the purpose of drilling and developing oil
and gas properties in South Texas.

         Michael  Ward  has  bee  the  Secretary/Treasurer  and  a  Director  of
Ecoloclean since January 2003. He is also the President, Chief Executive Officer
and Director of the Tidelands Oil & Gas Corporation.  Michael Ward has served in
the  Tideland's  offices since October 21, 1998. Mr. Ward has more than 25 years
of  diversified  experience as an oil and gas  professional.  He was educated in
business  management and  administration at Southwest Texas State University and
the  University  of Texas.  He has wide  experience  in the capacity in which he
successfully  served in operating  oil and gas  companies in the United  States.
During the past 20 years, he has been associated with Century Energy Corporation
where  his  duties   and   responsibilities   were   production   and   drilling
superintendent and supervised 300 re-completions and new drills in Duval County,
Texas. In association with Omega Minerals, Inc., where he was vice president and
part owner,  he  operated  65 wells in 23  counties in South and West Texas:  17
wells in Seminole and Osage  Counties,  Oklahoma,  44 wells in Neosho and Wilson
Counties,  Kansas and 125 wells in Brown,  Pike,  Schuyler  and Scott  Counties.
Illinois.  He was president and owner of Major  Petroleum  Company.  He drilled,
completed  and produced 42 wells in South and West Texas  counties.  The company
was sold. With Tidelands Oil  Corporation,  his duties included  supervising and
performing  remedial  well  work,  work-overs  and  economic  evaluation  of the
corporate  properties.  The  primary  area of interest  was in Maverick  County,
Texas. He has performed  project  financing  analysis and consulting of refinery
acquisitions for the Yemen government.

The officers and  directors of the World  Environmental  Technologies,  Inc. and
Reliant Drilling are as follows:

  Name                        Age           Position


Michael Richardson             63           President, CEO, Director

Michael Richardson  founded World  Environmental  Technologies,  Inc. ("WET") in
2001. He founded the company to capitalize on business  opportunities created by
increased  environmental  governmental  regulation in the State of Louisiana. He
sought out new  technologies  which could address  environmental  remediation of
contaminated  industrial  liquids.  Prior to founding WET he was an  independent
consultant and project manager  providing  environmental  consulting  services a
variety of corporations.



                                       15
<PAGE>

Compliance  with Section  16(a) of the  Securities  Exchange Act of 1934 Section
16(a) of the  Securities  Exchange Act of 1934 requires the Company's  directors
and  executive  officers,  and  persons  who own more than 10% of the  Company's
Common  Stock,  to file with the  Securities  and  Exchange  Commission  initial
reports of beneficial  ownership and reports of changes in beneficial  ownership
of  Common  Stock of the  Company.  Officers,  directors  and  greater  than 10%
shareholders  are required by the Securities and Exchange  Commission to furnish
the Company with copies of all section 16(a) reports they file.  Based solely on
copies of such forms  furnished as provided  above,  or written  representations
that no Forms 5 were required,  the Company believes that during the fiscal year
ended December 31, 2004, all Section 16(a) filing requirements applicable to its
executive  officers,  directors  and  beneficial  owners of more than  10%of its
Common Stock were complied  with,  except as follows:  During 2004,  Royis Ward,
Michael Ward and Michael  Richardson each failed to file one Form 5 each, Annual
Statement of Beneficial  Ownership.  During 2004,  Michael  Richardson failed to
file two Forms 4,  Statement of Change in  Beneficial  Ownership  regarding  two
private transfers of his common stock, 1,000,000 shares on January 14, 2004, and
200,000 shares on January 4, 2004. Additionally, he filed five Forms 4 late.

CODE OF ETHICAL CONDUCT.

On May 15, 2003, our board of directors adopted our code of ethical conduct that
applies to all of our employees and directors, including our principal executive
officer,   principal   financial  officer,   principal   accounting  officer  or
controller, and persons performing similar functions.

We believe the adoption of our Code of Ethical  Conduct is  consistent  with the
requirements of the Sarbanes-Oxley Act of 2002.

Our Code of Ethical Conduct is designed to deter wrongdoing and to promote:

         Honest and ethical conduct, including the ethical handling of actual or
         apparent  conflicts  of  interest  between  personal  and  professional
         relationships;

         Full, fair, accurate,  timely and understandable  disclosure in reports
         and  documents  that we file or submit  to the  Securities  &  Exchange
         omission and in other public communications made by us;

         Compliance with applicable governmental laws, rules and regulations,

         The  prompt  internal  reporting  to an  appropriate  person or persons
         identified in the code of  violations  of our Code of Ethical  Conduct;
         and

         Accountability for adherence to the Code.

ITEM 10. Executive Compensation

The following sets forth the  compensation of the officers of the Company in the
year ended December 31, 2004.

Summary Compensation.

The  following  table sets forth the  compensation  paid by the  Company  during
fiscal year 2004 to its officers.  This information includes the dollar value of
base  salaries,  bonus awards and number of stock options  granted,  and certain
other compensation, if any.

Table 1.
                                                                    Securities
                                                                    Underlying
Name and Position          Year       Salary            Bonus       Options/SARs

Royis Ward                 2004       $120,000(1)       -0-         -0-
Director, President

Michael Ward               2004       -0-               -0-         -0-
Sec/Treas., Director

Notes:
(1) As of December 31, 2004, the cumulative  amount of unpaid officer salary was
$280,000  and is  included  in  accounts  payable  and  accrued  expenses of our
financial statements.


                                       16
<PAGE>

Compensation of Directors
-------------------------

The members of the Board of  Directors  are not  compensated  by the Company for
acting as such.

ITEM 11.   Security Ownership of Certain Beneficial Owners and Management

The  following  table sets forth the Common Stock  ownership  information  as of
December 31, 2004, with respect to(i) each person known to the Company to be the
beneficial  owner of more  than 5% of the  Company's  Common  Stock;  (ii)  each
director  of the  Company;  and  (iii) all  directors,  executive  officers  and
designated  stockholders  of the  Company  as a group.  This  information  as to
beneficial ownership was furnished to the Company by or on behalf of the persons
named.  Unless  otherwise  indicated,  each has sole voting and investment power
with respect to the shares  beneficially  owned.  The  percentages  are based on
37,900,664 shares issued and outstanding as of December 31, 2004.

(a)      Beneficial Ownership of more than 5% based on 37,900,664 common shares.

    (1)                      (2)                   (3)                 (4)
Title of Class         Name and Address     Amount and Nature   Percent of Class
Common Stock


Royis Ward(1)(2)       1862 Bitters Rd.         6,000,000             15.83%
                       San Antonio, TX

Michael Ward(1)(2)     5902 Fenway St.          6,000,000             15.83%
                       Corpus Christi, TX

Michael Richardson(2)  950 Birdsong St.         2,685,500              7.08%
                       Lafayette, LA

Gregory M. Wilson      18610 East 32nd Ave.     3,200,000              8.44%
                       Greenacres, WA 99016


Total                                          17,617,700             46.48%


(b)Security  Ownership of Management.  Based on 37,900,664 shares as of December
31, 2004.

Table 2.

Title of Class         Name and Address     Amount and Nature   Percent of Class

Michael Ward(1)        1862 W. Bitters Rd.      6,000,000            15.83%
                       San Antonio, TX

Royis Ward(1)          5902 Fenway St.          6,000,000            15.83%
                       Corpus Christi, TX
                       78413

Michael Richardson(2)  950 Birdsong St.         2,685,500             7.08%
                       Lafayette, LA

Total                                          14,685,500            %

Directors as a group owned 31.66% of the Company's issued and outstanding stock.

Notes:
------
(1) Directors and Officers
(2) Mike Richardson is an officer and director of World Environmental
Technologies, Inc.




                                       17
<PAGE>

 ITEM 12.  Certain Relationships and Related Transactions

As of December 31, 2004, Royis Ward and Michael Ward have loaned  $1,718,609 and
$233,199  respectively,  to the  Company.  These  amounts  represent  cumulative
advances  and the debt bears  interest at the rate of 5% per annum.  The debt is
due on, or before July 10, 2006.

ITEM 13.      Exhibits

*3.1          Articles of  Incorporation  of  Sailtech  International,  Inc.,  a
              Nevada corporation, formerly Argonaut Resources, Ltd
*3.2          Articles  of  Amendment  Sailtech  International,  Inc.,  formerly
              Argonaut Resources, Ltd.
*3.3          Articles of Amendment  of Sailtech  International,  Inc.  changing
              name to Ecoloclean Industries, Inc. filed Form 8-K on 12-18-03.
*3.4          Bylaws of Sailtech International, Inc.
21            List of Subsidiaries
31.1          Chief  Executive  Officer-Section  302  Certification  pursuant to
              Sarbanes- Oxley Act.
31.2          Chief Financial  Officer-  Section 302  Certification  pursuant to
              Sarbanes- Oxley Act.
32.1          Chief  Executive  Officer-Section  906  Certification  pursuant to
              Sarbanes- Oxley Act.
32.2          Chief Financial  Officer-  Section 906  Certification  pursuant to
              Sarbanes- Oxley Act.

* Previously filed.

ITEM 14.  Principal Accountant Fees and Services.

         The Company paid or accrued the following fees in each of the prior two
fiscal years to its principal  accountant,  Baum & Co.,  P.A. of Coral  Springs,
Florida.

                                Year End        Year End
                                12-31-04        12-31-03

(1) Audit Fees                  $39,530         $31,970
(2) Audit-related Fees              -0-             -0-
(3) Tax Fees                        -0-             -0-
(4) All other fees                  -0-             -0-
    Total Fees                  $39,530         $31,970

The Company has no formal audit committee. However, as defined in Sarbanes-Oxley
Act of 2002,  the entire  Board of  Directors  is the  Company's  defacto  audit
committee.

The Company's  principal  accountant,  Baum & Co., P.A. did not engage any other
persons or firms  other than the  principal  accountant's  full-time,  permanent
employees.



                                       18
<PAGE>

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) to the Securities  Exchange
Act of 1934,  the Company has duly caused this Form 10-KSB Report for the period
ending  December  31,  2004  to be  signed  on its  behalf  by the  undersigned,
thereunto duly authorized on this 20th day of April, 2005.


                                           ECOLOCLEAN INDUSTRIES, INC.


                                           BY: /s/ Royis Ward
                                              ----------------------------------
                                              Royis Ward, President


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the  following  persons on behalf of the Company and in
the capacities and on the dates indicated.



Date: April 20, 2005                           /s/ Royis Ward
                                              ----------------------------------
                                              Royis Ward, President, Director

                                               /s/ Michael Ward
                                              ----------------------------------
                                              Michael Ward, Secretary/Treasurer,
                                              Director




                                       19
<PAGE>














                           ECOLOCLEAN INDUSTRIES, INC.
                        CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED DECEMBER 31, 2004 AND 2003






<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                        CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED DECEMBER 31, 2004 AND 2003



                                TABLE OF CONTENTS





INDEPENDENT AUDITOR'S REPORT.........................................        F-3

CONSOLIDATED FINANCIAL STATEMENTS:

    Consolidated Balance Sheets......................................        F-4

    Statements of  Consolidated Stockholders' (Deficit)..............        F-5

    Statements of Consolidated Operations ...........................        F-6

    Statements of Consolidated Cash Flows............................  F-7 - F-8

    Notes to Consolidated Financial Statements ...................... F-9 - F-18












                                      F-2
<PAGE>

                              BAUM & COMPANY, P.A.
                        1515 UNIVERSITY DRIVE, SUITE 209
                          CORAL SPRINGS, FLORIDA 33071




                          INDEPENDENT AUDITOR'S REPORT

Board of Directors
Ecoloclean Industries, Inc.
2242 S. Highway 83
Crystal City, TX 78839


We have  audited the  accompanying  consolidated  balance  sheets of  Ecoloclean
Industries,  Inc. as of December 31, 2004 and 2003 and the related  consolidated
statements of stockholders' (deficit),  operations, and cash flows for the years
ended December 31, 2004 and 2003. These  consolidated  financial  statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audit.

Except as  discussed  in the  following  paragraph,  we  conducted  our audit in
accordance with the standards of the Public Company  Accounting  Oversight Board
(United States).  Those standards  require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated  financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence  supporting the amounts and disclosures in the  consolidated  financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
consolidated  financial  statement  presentation.  We  believe  that  our  audit
provides a reasonable basis for our opinion.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 1 to the
financial statements,  the Company has suffered recurring losses from operations
and has a net capital  deficiency that raise substantial doubt about its ability
to continue as a going  concern.  Management's  plans in regard to these matters
are also  described  in Note 1. The  financial  statements  do not  include  any
adjustments that might result from the outcome of this uncertainty.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
Ecoloclean Industries,  Inc. as of December 31, 2004 and 2003 and the results of
their  consolidated  operations and their  consolidated cash flows for the years
ended  December  31,  2004 and 2003 in  conformity  with  accounting  principles
generally accepted in the United States of America.



Baum & Company, P.A.
Coral Springs, Florida
April 14, 2005


                                      F-3
<PAGE>
<TABLE>
<CAPTION>

                           ECOLOCLEAN INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                               December 31,    December 31,
                                                                   2004            2003
                                                               ------------    ------------
<S>                                                            <C>             <C>
Current Assets:
      Cash                                                     $      5,929    $      2,532
      Accounts Receivable                                           153,987          77,037
      Prepaid Expenses                                               72,294          19,616
                                                               ------------    ------------
         Total Current Assets                                       232,210          99,185
                                                               ------------    ------------

Property, Plant and Equipment, (Net) (Notes 1,3)                    858,692         425,718
                                                               ------------    ------------

Other Assets:
      Deposits                                                       12,970             200
License and Trademark Costs (Net) (Notes 1,2)                        80,434          20,528
      Intangible Assets                                              33,585          33,585
                                                               ------------    ------------
         Total Other Assets                                         126,989          54,313
                                                               ------------    ------------

         Total Assets                                          $  1,217,891    $    579,216
                                                               ============    ============

                     LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current Liabilities:
      Accounts Payable and Accrued Expenses                    $  1,055,720    $    488,823
      Notes and Loans Payable - Current Portion                     260,461          27,414
                                                               ------------    ------------
         Total Current Liabilities                                1,316,181         516,237

Long-Term Debt (Note 4)                                               9,661            --

Due to Related Parties (Note 5)                                   1,941,808         775,369
                                                               ------------    ------------

         Total Liabilities                                        3,267,650       1,291,606
                                                               ------------    ------------
Commitments and Contingencies                                          --              --
Stockholders' (Deficit)
      Preferred Stock, $0.001 par value per share,
        10,000,000 shares, authorized 0 shares
        issued and outstanding                                         --              --
        Common Stock, $0.0001 par value per share,
         100,000,000 shares authorized, 37,900,664
         and 32,500,664 shares issued and outstanding
          at 2004 and 2003 respectively                               3,790           3,250
      Additional Paid-in Capital                                  1,591,731         190,558
      Accumulated (Deficit)                                      (3,645,280)       (906,198)
                                                               ------------    ------------

         Total Stockholders' (Deficit)                           (2,049,759)       (712,390)
                                                               ------------    ------------

         Total Liabilities and Stockholders' (Deficit)         $  1,217,891    $    579,216
                                                               ============    ============
</TABLE>


           See Accompanying Notes to Consolidated Financial Statements

                                      F-4
<PAGE>
<TABLE>
<CAPTION>

                           ECOLOCLEAN INDUSTRIES, INC.
               STATEMENTS OF CONSOLIDATED STOCKHOLDERS' (DEFICIT)
                 FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003




                               Common
                               Stock                           Additional         Stock                             Total
                               Shares                            Paid-In       Subscription      Accumulated     Stockholders'
                               Issued           Amount           Capital        Receivable         (Deficit)       (Deficit)
                            -------------    -------------    -------------    -------------    -------------    -------------
<S>                         <C>              <C>              <C>              <C>              <C>              <C>
Balance -
December 31, 2002                 500,000    $         500    $      49,500    $     (10,000)   $    (111,775)   $     (71,775)

Reverse Merger
Transaction:
  Shares Outstanding           10,092,435           10,092             --               --               --             10,092
  Exchange
      Existing Shares            (500,000)            (500)         (49,500)            --               --            (50,000)
      New Issuances            20,000,000           20,000             --               --               --             20,000
      Net Deficit at Time
       of Reverse  Merger            --               --           (103,558)            --               --           (103,558)
Collection of Stock
   Subscription                      --               --               --             10,000             --             10,000

Stock Issuances:
    Sale of Common Stock          357,140              357           24,643             --               --             25,000
    For Payment of
      Accounts Payable            326,089              327           81,947             --               --             82,274
   For Services And
      Compensation              1,725,000            1,725          152,275             --               --            154,000

Shareholder Assumption
  Of Liability                       --               --              6,000             --               --              6,000
Recapitalization of Par
  Value                              --            (29,251)          29,251             --               --               --
Net (Loss) For
  The Period                         --               --               --               --           (794,423)        (794,423)
                            -------------    -------------    -------------    -------------    -------------    -------------

Balance
 December 31, 2003             32,500,664    $       3,250    $     190,558    $           0    $    (906,198)   $    (712,390)

Stock Issuances
  Sale of Common  Stock         1,000,000              100          499,900             --               --            500,000
For Services and
  Compensation                  4,400,000              440          901,273             --               --            901,713
Net Loss For The Period              --               --               --               --         (2,739,082)      (2,739,082)
                            -------------    -------------    -------------    -------------    -------------    -------------

Balance
  December 31, 2004            37,900,664    $       3,790    $   1,591,731    $           0    $  (3,645,280)   $  (2,049,759)
                            =============    =============    =============    =============    =============    =============
</TABLE>



           See Accompanying Notes to Consolidated Financial Statements

                                      F-5
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                      STATEMENTS OF CONSOLIDATED OPERATIONS



                                           For Year Ended      For Year Ended
                                         December 31, 2004    December 31, 2003
                                         -----------------    -----------------


Revenues                                 $         921,810    $         329,845
                                         -----------------    -----------------

Expenses:
   Cost of Sales                                   617,112              169,917
   Operating Expenses                              529,870              151,798
   Depreciation & Amortization                     144,549               41,692
   Interest                                         99,318               34,251
   Officer's Salary                                120,000              120,000
   Selling, General and Administrative           2,150,043              606,610
                                         -----------------    -----------------

   Total Expenses                                3,660,892            1,124,268
                                         -----------------    -----------------

Net (Loss)                               $      (2,739,082)   $        (794,423)
                                         =================    =================

Net (Loss) Per Common Share
   Basic and Diluted                     $           (0.08)   $           (0.03)
                                         =================    =================

Weighted Average Number of Common
   Shares Outstanding                           35,200,664           31,296,350
                                         =================    =================
















           See Accompanying Notes to Consolidated Financial Statements

                                      F-6
<PAGE>
<TABLE>
<CAPTION>

                           ECOLOCLEAN INDUSTRIES, INC.
                      STATEMENTS OF CONSOLIDATED CASH FLOWS


                                                           For Year Ended       For Year Ended
                                                          December 31, 2004    December 31, 2003
                                                          -----------------    -----------------
<S>                                                       <C>                  <C>
Cash Flows Provided (Required) By
  Operating Activities:
    Net (Loss)                                            $      (2,739,082)   $        (794,423)
   Adjustments to Reconcile Net (Loss)
           to Net Cash Provided (Required) By
          Operating Activities:
    Depreciation and Amortization                                   144,549               41,692
    Issuance of Common Stock
         For Services Provided                                      901,713              154,000
    Officer's Salary Accrual                                        120,000              120,000
    Cash Effects of Changes, Net of Effects
          From Acquired Company:
             Accounts Receivable                                    (76,950)             (48,367)
           Prepaid Expenses                                         (52,678)              (4,843)
           Deposits                                                 (12,770)                (200)
           Accounts Payable and Accrued Expenses                    446,897              238,634
              Customer Deposits                                           0              (65,000)
                                                          -----------------    -----------------
Net Cash (Required) by Operating Activities                      (1,268,321)            (358,507)
                                                          -----------------    -----------------

Cash Flows (Required) By
   Investing Activities:
      Acquisition of Licenses and Trademark Costs                   (65,505)                   0
      Purchases of Property, Plant and
         Equipment Net of Effects From
         Acquired Company                                              --
         Purchases of Property, Plant and Equipment                (571,924)            (331,006)
                                                          -----------------    -----------------

Net Cash (Required) By Investing Activities                        (637,429)            (331,006)
                                                          -----------------    -----------------

Cash Flows Provided (Required) By
   Financing Activities:
       Proceeds From Collection of
         Stockholder Subscriptions                                        0               10,000
       Note Payable Paid by Stockholder                                   0                6,000
       Proceeds From Issuance of Common Stock                       500,000               25,000
       Proceeds  (Payments) of Notes and  Loans Payable             242,708               (6,433)
       Repayment of Loans From Related Parties                            0              (30,891)
       Proceeds of Loans From Related Parties                     1,166,439              687,665
                                                          -----------------    -----------------
Net Cash Provided by Financing Activities                         1,909,147              691,341
                                                          -----------------    -----------------

Net Increase in Cash                                                  3,397                1,828
Cash at Beginning of Period                                           2,532                  704
                                                          -----------------    -----------------
Cash at End of Period                                     $           5,929    $           2,532
                                                          =================    =================
</TABLE>




           See Accompanying Notes to Consolidated Financial Statements

                                      F-7
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                      STATEMENTS OF CONSOLIDATED CASH FLOWS


                                   (CONTINUED)





                                             For Year Ended      For Year Ended
                                           December 31, 2004   December 31, 2003
                                           -----------------   -----------------


Supplemental Disclosures of Cash
   Flow Information
        Cash Payments for Interest         $          18,826   $           9,459
                                           =================   =================
        Cash Payments for Income Taxes     $               0   $               0
                                           =================   =================

Non-Cash Financing Activities:
   Issuance of Common Stock:
          Operating Activities             $         901,713   $         154,000
          Payment of Accounts Payable                      0              82,274
                                           -----------------   -----------------

Total Non-Cash Financing Activities        $         901,713   $         236,274
                                           =================   =================





















           See Accompanying Notes to Consolidated Financial Statements

                                      F-8
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------   ------------------------------------------

         This summary of significant  accounting policies is presented to assist
         in  understanding   these  consolidated   financial   statements.   The
         consolidated  financial  statements  and notes are  representations  of
         management who are responsible for their integrity and objectivity. The
         accounting  policies  used conform to accounting  principles  generally
         accepted  in the United  States of America  and have been  consistently
         applied in the preparation of these consolidated financial statements.

         Organization
         ------------

         On June 11, 2002,  Ecoloclean,  Inc., the Company,  incorporated in the
         state of Texas.  On September  1, 2002 the Company  acquired all of the
         outstanding shares of World Environmental Technologies,  Inc. (WET). On
         January  14,  2003 the Company  completed  a reverse  acquisition  with
         Sailtech  International,  Inc.  and the  Company  changed  its  name to
         Ecoloclean   Industries,   Inc.  In  addition  to  owning  all  of  the
         outstanding shares of WET, the company also owns all of the outstanding
         shares of Reliant Drilling Systems,  Inc. and Ecoloclean of Texas, Inc.
         (See Note 9 - Subsequent Events).

         Business
         --------

         The Company and its  subsidiaries  operate under a worldwide,  industry
         exclusive and perpetual license to manufacture machines,  pursuant to a
         patent, for the treatment of contaminated water through a process known
         as   electrocoagulation.   The  industry  exclusivity  applies  to  the
         petroleum exploration, petroleum, chemical, transportation and refining
         industries.

         The Company also provides environmental clean-up services to industrial
         customers  and  solids  handling  services  to  oil  and  gas  drilling
         contractors.

         In addition,  the Company expects to offer various models of the "Coale
         Separator",  described in Note 2 below,  beginning in the first quarter
         of 2005.

         Principles of Consolidation
         ---------------------------

         The accompanying consolidated financial statements include the accounts
         of  the  Company  and  its  wholly-owned  subsidiaries.   All  material
         inter-company items and transactions have been eliminated.



                                      F-9
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
------   ------------------------------------------------------

         Fair Value of Financial Instruments
         -----------------------------------

         The Company has adopted Statement of Financial Accounting Standards No.
         107  "Disclosures  About Fair Value of  Financial  Instruments",  which
         requires the disclosures of the fair value of off-and-on  balance sheet
         financial instruments.  Unless otherwise indicated,  the fair values of
         all  reported  assets  and  liabilities,   which  represent   financial
         instruments (none of which are held for trading purposes),  approximate
         the carrying values of such amounts.

         Use of Estimates
         ----------------

         The preparation of consolidated financial statements in accordance with
         accounting  principles  generally  accepted  in the  United  States  of
         America requires management to use estimates and make judgments.  While
         management  has considered  all available  information,  actual amounts
         could  differ  from  those  reported  as assets,  liabilities,  related
         revenues,   costs  and   expenses   and  the   disclosed   amounts   of
         contingencies.

         Property, Plant and Equipment
         -----------------------------

         Property,   plant  and  equipment  are  recorded  at  historical  cost.
         Depreciation  of  property,  plant and  equipment  is  provided  on the
         straight-line  method over the  estimated  useful  lives of the related
         assets.  Maintenance  and repairs are charged to operations.  Additions
         and  betterments,  which  extend  the  useful  lives of the  assets are
         capitalized.  Upon  retirement or disposal of the  property,  plant and
         equipment,  the cost and accumulated  depreciation  are eliminated from
         the  accounts,   and  the  resulting  gain  or  loss  is  reflected  in
         operations.

         Goodwill and Purchased Intangible Assets
         ----------------------------------------

         Statement of Financial Accounting Standards No. 142 "Goodwill and Other
         Intangible  Assets"  ("SFAS  142")  requires  goodwill to be tested for
         impairment,  on an annual  basis and  between  annual  tests in certain
         circumstances,  and  written  down when  impaired,  rather  than  being
         amortized as previous accounting standards required.  Furthermore, SFAS
         142 requires  purchased  intangible  assets  other than  goodwill to be
         amortized  over their useful lives unless these lives are determined to
         be indefinite.





                                      F-10
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
------   ------------------------------------------------------

         Goodwill and Purchased Intangible Assets (Continued)
         ----------------------------------------------------

         Based upon the impairment tests  performed,  there was no impairment of
         goodwill  for  the  year  ended  December  31,  2004.  There  can be no
         assurance that future  goodwill  impairment  tests will not result in a
         charge to earnings.

         Purchased intangible asset (The "License Agreement") is carried at cost
         less  accumulated  amortization.  Amortization  is  computed  over  the
         estimated economic useful life of the underlying patent of five years.

         Long-Lived Assets
         -----------------

         Statement of Financial  Accounting Standards 144 (SFAS 144) "Accounting
         for the  Impairment  or Disposal of  Long-Lived  Assets"  requires that
         long-lived  assets to be held and used by the Company be  reviewed  for
         impairment  whenever events or changes in  circumstances  indicate that
         the related  carrying  amount may not be  recoverable.  When  required,
         impairment losses on assets to be held and used are recognized based on
         the fair value of the asset,  and  long-lived  assets to be disposed of
         are reported at the lower of carrying amount or fair value less cost to
         sell.

         The  requirements of SFAS 144 and the evaluation by the Company did not
         have a significant  effect on the  consolidated  financial  position or
         results of consolidated operations.

         Revenue Recognition
         -------------------

         The  Company  recognizes  revenue on  service  contracts  ratably  over
         applicable  contract  periods or as  services  are  performed.  Amounts
         billed and collected  before the services are performed are included in
         deferred  revenues.  Amounts  collected  but  not  billed,  before  the
         services are performed, are included in customer deposits.







                                      F-11
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
------   ------------------------------------------------------

         Going Concern
         -------------

         The accompanying  audited  consolidated  financial statements have been
         prepared on a going concern basis, which anticipates the realization of
         assets and the  liquidation of liabilities  during the normal course of
         operations.   However,   as  shown  in  these  consolidated   financial
         statements,  the  Company  during the year  ended  December  31,  2004,
         incurred a net loss of  $2,739,082,  and as of that date, the Company's
         total liabilities exceeded its total assets by $2,049,759. In addition,
         the  Company  in  its  short  history  (incorporated  in  2002)  has an
         accumulated deficit of $3,645,280.  These factors raise doubt about the
         Company's  ability  to  continue  as a  going  concern  if  changes  in
         operations  are not  forthcoming.  Management,  in the first quarter of
         2005 (see Note 9 -  Subsequent  Events),  has taken a position  that by
         discontinuing  operations in certain of its wholly-owned  subsidiaries,
         and concentrating its efforts on more productive resources, the Company
         will achieve more favorable operating results. The Company's ability to
         continue  as a going  concern  will depend on  management's  ability to
         successfully  implement a business plan which will  increase  revenues,
         control  costs,  and  obtain  additional  forms of debt  and/or  equity
         financing.  These  financial  statements do not include any adjustments
         that might be necessary if the Company is unable to continue as a going
         concern.

         Income Taxes
         ------------

         The Company  accounts for income taxes in accordance  with Statement of
         Financial Accounting Standards 109 ("SFAS 109"), "Accounting for Income
         Taxes,"  which  requires the  establishment  of a deferred tax asset or
         liability for the  recognition of future  deductions or taxable amounts
         and operating  loss  carryforwards.  Deferred tax expense or benefit is
         recognized as a result of the change in the deferred asset or liability
         during the year. If necessary,  the Company will  establish a valuation
         allowance  to reduce any  deferred  tax asset to an amount  which will,
         more likely than not, be realized.









                                      F-12
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
------   ------------------------------------------------------

         Net (Loss) Per Common Share
         ---------------------------

         The Company accounts for earnings (losses) per share in accordance with
         Statement of Financial  Accounting  Standard 128 ("SFAS 128") "Earnings
         per Share".  Basic  earnings  (losses)  per share is based upon the net
         earnings (losses)  applicable to common shares after preferred dividend
         requirements  and upon the  weighted  average  number of common  shares
         outstanding  during the period.  Diluted  earnings  (losses)  per share
         reflects  the  effect  of  the  assumed   conversions   of  convertible
         securities  and exercise of stock  options only in the periods in which
         such affect  would have been  dilutive.  Basic and diluted net loss per
         common  share are the same  since (a) the  Company  has  reflected  net
         losses from continuing operations for all periods presented and (b) the
         potential common shares of the Company would be anti-dilutive.

         Concentrations
         --------------

         The Company  receives  certain of its components  from sole  suppliers.
         Additionally,  the  Company  relies  on a limited  number  of  contract
         manufacturers and suppliers to provide  manufacturing  services for its
         products.  The  inability of any contract  manufacturer  or supplier to
         fulfill  supply  requirements  of the Company could  materially  impact
         future operating results.



NOTE 2 - LICENSE AND TRADE MARK COSTS
------   -----------------------------

         The Company acquired an industry exclusive, perpetual worldwide license
         to  commercialize  the  inventions on patents and market,  manufacture,
         sell, lease and, or utilize,  for processing  electrocoagulation  units
         for the  treatment  of effluent  water.  Royalties  are $3,000 per unit
         manufactured  and 2% of gross  processing  revenues.  License costs are
         being amortized over 5 years.

         During 2005, the Company  obtained the worldwide  exclusive  rights for
         the patented Coale  Separator which  supercedes a previously  announced
         general revenue sharing agreement with the licensors.





                                      F-13
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 2 - LICENSE AND TRADE MARK COSTS (CONTINUED)
------   ----------------------------------------

         The new license agreement and international marketing rights will allow
         Ecoloclean  the  opportunity  to  market,   manufacture,   install  and
         commercialize  the  inventions  and to  operate  and use  such  process
         apparatus, machinery and devices to remove contaminants from fuels used
         in  combustion  engines,  using fewer than five (5) gallons of fuel per
         minute.  The exclusive rights granted under this superceding  agreement
         will apply to industries that use combustion  engines and are inclusive
         of two  patents  currently  in place and any  future  related  patents,
         improvements or  applications.  This  acquisition will be developed and
         marketed under  Ecoloclean's  World  Environmental  Technologies,  Inc.
         subsidiary.

         The license  agreement  and a related  consulting  agreement  require a
         $50,000  one-time  license  fee and the  issuance  of 50,000  shares of
         restricted common stock of Ecoloclean Industries, Inc. which was valued
         at $12,000 and issued in 2005 after approval in 2004.

         The Company incurred  trademark  application  costs of $3,505 regarding
         various product names for the Coale Separator.

         A summary of license and trademark  costs at December 31, 2004 and 2003
         is as follows:

                                                     December 31,   December 31,
                                                         2004           2003
                                                     ------------   ------------

         License Costs Electro Coagulation
           Technology (Net)                          $     14,929   $     20,528
         License Costs - Coale Separator                   62,000              0
         Trademark Costs - Coale                            3,505              0
                                                     ------------   ------------
                                                     $     80,434   $     20,528
                                                     ============   ============











                                      F-14
<PAGE>
<TABLE>
<CAPTION>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004

NOTE 3 - PROPERTY, PLANT AND EQUIPMENT
------   -----------------------------

         A summary of  property,  plant and  equipment  at December 31, 2004 and
         December 31, 2003 is as follows:

                                              December 31,    December 31,      Estimted
                                                  2004            2003        Economic Life
                                              ------------    ------------    -------------
         <S>                                  <C>             <C>             <C>
         Land                                 $     80,000    $     80,000         N/A
         Warehouse                                  34,120          29,726      40 Years
         Electro Coagulation Units                 239,237         184,358       5 Years
         Machinery & Equipment                     619,630         137,996       5 Years
         Office Equipment                            8,789           2,911       5 Years
         Computers & Related Equipment              15,640           7,236       5 Years
         Transportation Equipment                   42,448          25,713       5 Years
                                              ------------    ------------
              Total                              1,039,864         467,940
         Less Accumulated Depreciation             181,172          42,222
                                              ------------    ------------
           Net Property, Plant & Equipment    $    858,692    $    425,718
                                              ============    ============
</TABLE>

         Depreciation expense for the years ended December 31, 2004 and December
         31, 2003 amounted to $138,950 and $36,093 respectively.

NOTE 4 - LONG-TERM DEBT
------   --------------

         A summary of notes and loans  payable at December 31, 2004 and 2003 are
         as follows:
<TABLE>
<CAPTION>

                                                             December 31,   December 31,
                                                                 2004           2003
                                                             ------------   ------------
         <S>                                                 <C>            <C>
         Note Payable, unsecured, 10% Interest Bearing,
           Maturing April 6, 2005 (Note extended to          $    150,000   $          0
           October 6, 2005)

         Loan Payable, Unsecured, Non Interest Bearing
           Payable on Demand                                       15,108              0

         Notes Payable, Secured Interest Bearing Factoring
           Line of Credit (See Note Below)                         89,252         27,414

         Note Payable, Secured by a Truck, 14% Interest
           Bearing, Maturing July 22, 2007                         15,762              0
                                                             ------------   ------------
                                                                  270,122         27,414
                   Less Current Maturities                        260,461         27,414
                                                             ------------   ------------
                        Total Long-Term Debt                 $      9,661   $          0
                                                             ============   ============
         </TABLE>





                                      F-15
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004



NOTE 4 - LONG-TERM DEBT (CONTINUED)
------   --------------------------

         Note:  The Company  has entered  into an  agreement  to factor  certain
         accounts receivable.  Under this agreement,  the Company may receive up
         to seventy percent of the account balance at an interest rate of 2% the
         first  month  and 1% per  month  on the  outstanding  factored  invoice
         thereafter until payment is received.

NOTE 5 - RELATED PARTY TRANSACTIONS
------   --------------------------

         The Board of Directors has approved a salary for services provided.  At
         December 31, 2004 the cumulative  amount of unpaid officer's salary was
         $280,000 and is included in accounts payable and accrued expenses.

         At December 31, 2004  cumulative  advances  bearing  interest at 5% per
         annum Due to  officers  of the  Company  amounted  to  $1,941,808  plus
         $97,130 accrued interest.  The accrued interest is included in accounts
         payable and accrued  expenses.  The advances are due July 10, 2006 with
         the right of prepayment.

NOTE 6 - INCOME TAXES

         The Company files a consolidated federal income tax return. At December
         31,  2004,  the  Company  had  a net  operating  loss  carryforward  of
         approximately  $3,345,187  available to offset future  federal  taxable
         income  through  2024.  The  components  of the deferred tax assets and
         liabilities accounts at December 31, 2004 are as follows:

         Total Deferred Tax Assets                                $    1,137,364
         Less:  Valuation Allowance                                    1,137,364
                                                                  --------------
         Deferred Tax Asset (Liability)                           $            0
                                                                  ==============

NOTE 7 - COMMON STOCK TRANSACTIONS
------   -------------------------

         On January 2, 2004, the Company approved the issuance of 100,000 shares
         of restricted  common stock for consulting  services valued at $50,000.
         These shares were issued March 15, 2004.

         On April 14, 2004,  the Company issued 100,000 shares of its restricted
         common  stock for  investor  and public  relations  services  valued at
         $44,000.




                                      F-16
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004


NOTE 7 - COMMON STOCK TRANSACTIONS (CONTINUED)
------   -------------------------------------

         On April 15, 2004,  the Company issued 500,000 shares of its restricted
         common stock for consulting services valued at $212,000.

         On June 15, 2004,  The Company  issued 350,000 shares of its restricted
         common stock for consulting services valued at $108,500.

         On June 22, 2004,  the Company  approved the issuance of 800,000 shares
         of its  restricted  common stock valued at $176,000 and 200,000  shares
         under its 2004 Stock Grant and Option Plan valued at $110,000 for legal
         services.

         On June 30, 2004, the Company issued 1,000,000 shares of its restricted
         common stock for $500,000.

         On June 30, 2004,  the Company  issued 500,000 shares of its restricted
         common  stock valued at $130,000  for  services  regarding  the private
         placement of the Company's common stock.

         On August 1, 2004,  the Company  issued 25,000 shares of its restricted
         common stock for an employee stock bonus valued at $4,214.

         On  September  7,  2004,  the  Company  issued  500,000  shares  of its
         restricted common stock for consulting services valued at $73,125.

         On  September  22, 2004,  the Company  issued  1,000,000  shares of its
         restricted common stock for legal services valued at $77,500.

         On  October  18,  2004,  the  Company  issued  150,000  shares  of  its
         restricted   common  stock  valued  at  $15,000  regarding  a  $150,000
         six-month loan.

         On October 27, 2004, the Company issued 25,000 shares of its restricted
         common  stock  valued  at  $5,625  to each of four  employees  as stock
         bonuses.

         On November 3, 2004, the Company issued 25,000 shares of its restricted
         common stock valued at $4,375 to an employee as a stock bonus.

         On  December  29,  2004,  the  Company  issued  25,000  shares  of  its
         restricted  common stock valued at $2,250 to each of two employees as a
         stock bonus.



                                      F-17
<PAGE>

                           ECOLOCLEAN INDUSTRIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 2004


NOTE 8 - STOCK PLAN
------   -------------

         On July 8, 2004, the Company adopted the 2004 Non-Qualified Stock Grant
         and  Option  Plan.  The Plan was  registered  with the  Securities  and
         Exchange  Commission  on  Form  S-8 on  July  23,  2004.  The  Plan  is
         administered by the Company's Board of Directors. The Plan provides for
         the  issuance  of common  stock,  warrants  and  options in payment for
         services.  Eligible participants are as follows:  Directors,  Officers,
         Employees,  Consultants,  Attorneys  and  Others.  There are  5,000,000
         shares  reserved  under the Plan and as at  December  31,  2004,  there
         remains 4,800,000 shares available for future issuance.

 NOTE 9 - SUBSEQUENT EVENTS
 ------   -----------------

         During the first quarter of 2005,  Reliant  Drilling  Systems,  Inc., a
         wholly-owned  subsidiary  of the  Company,  which had been  engaged  in
         providing  solids  control  services  for  oil  and  gas  drillers  and
         producers,  began to sell certain of its  equipment  assets in order to
         implement its decision to no longer offer these services.  For the year
         ended December 31, 2004, this  wholly-owned  subsidiary had revenues of
         $718,025 with a reported loss of $280,091.

         Also,  during the first  quarter  of 2005,  Ecoloclean  of Texas,  Inc.
         another wholly-owned  subsidiary of the Company, which had been engaged
         in providing enviro cleanup services to industrial customers,  executed
         a letter of intent to sell its equipment assets and customer  contracts
         in accordance  with its decision to no longer offer its  services.  For
         the year ended  December 31, 2004,  this  wholly-owned  subsidiary  had
         revenues of $132,668 with a reported loss of $285,651.















                                      F-18