SECURITIES EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

                  ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                   For the Fiscal Year Ended December 31, 2001

                         Commission file number 0-29670

                                  DRUCKER, INC.

             (Exact name of registrant as specified in its charter)

 Delaware                                          N/A
 ----------                                       -----
(State or other jurisdiction                   (I.R.S. Employer
of incorporation or organization)               Identification
                                                No.)

             #1-1035 Richards Street, Vancouver, B.C. Canada V6B 3E4
             -------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (604) 681-4421


           Securities Registered Pursuant to Section 12(b) of the Act:

                                      NONE

           Securities Registered Pursuant to Section 12(g) of the Act

                          COMMON STOCK $.001 PAR VALUE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.

                      Yes  X         No

Indicate by check mark if disclosure of delinquent filers in Response to Item
405 of Regulation S-B is not contained 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 to this Form 10-KSB.

                      Yes           No   X

Registrant's gross revenues for its most recent fiscal year were $1,909,363 from
oil and gas operation and from interest income. Operations expenses totaled
$1,154,631 for a net loss of $2,842,850.

<PAGE>

State the aggregate market value of the voting stock held by non-affiliates of
the Registrant: $1,299,050 as of December 31, 2001 (at $0.04/share closing price
at December 31, 2001).

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock: 32,476,250 common shares as of December 31, 2001.

<PAGE>



                                TABLE OF CONTENTS

                                     PART I
                                                                           Page

Item 1.   Business............................................................__

Item 2.   Properties .........................................................__

Item 3.   Legal Proceedings...................................................__

Item 4.   Submission of Matters to a Vote of
          Security Holders...................................................__

                                     PART II

Item 5.   Market for Registrant's Common Stock and
          Security Holder Matters ...........................................__

Item 6.   Management's Discussion and Analysis of
          Financial Condition and Results of
          Operations ........................................................__

Item 7.   Financial Statements and Supplementary Data.........................__

Item 8.   Changes in and Disagreements with Accountants
          on Accounting and Financial Disclosure.............................__

                                    PART III

Item 9.   Directors and Executive Officers of the
          Registrant ........................................................__

Item 10.  Executive Compensation..............................................__

Item 11.  Security Ownership of Certain Beneficial
          Owners and Management..............................................__

Item 12.  Certain Relationships and Related
          Transactions.......................................................__

                                     PART IV

Item 13.  Exhibits, Financial Statement Schedule
          and Reports on Form 8-K............................................__




<PAGE>



                                     PART I

         Throughout this Annual Report on Form 10-KSB, the terms "we", "us",
"our" and "our company" refers to Drucker, Inc.("Drucker") and, unless the
context indicates otherwise, includes Drucker's wholly-owned subsidiaries,
Drucker Petroleum, Inc. and Drucker Petroleum (Algeria), Inc.

ITEM 1.           BUSINESS

(a)  General Description and Development of Business.

                               HISTORY OF COMPANY

         On February 4, 1971, we were incorporated under the laws of the State
of Idaho, under the name of Monetary Metals Corporation. On December 16, 1988,
Drucker Sound Design Corporation was incorporated under the laws of the State of
California. On October 18, 1989, Gul Industries Corp. was incorporated under the
laws of the State of Delaware. On December 14, 1989, we entered into an
Agreement and Plan of Reorganization, whereby Monetary Metals Corporation
acquired 100% of the assets subject to liabilities of Drucker Sound Design
Corporation, a California corporation. We began engaging in the manufacturing
and distribution of audio, cellular, C.B., radar, and other electronic
installation systems for automobiles. We decided to redomicile in Delaware and
entered into a merger agreement with Gul Industries, Inc., a Delaware
corporation. On April 16, 1990, we filed Articles of Amendment in the State of
Idaho changing our name from Monetary Metals Corporation to Drucker Sound Design
Corporation. On June 6, 1990, Gul Industries Corp. filed a Certificate of
Amendment to the State of Delaware changing its name to Drucker Sound Design
Corporation. On June 19, 1990, a Certificate of Merger was filed in the State of
Delaware. On August 7, 1990, a Certificate of Merger was filed in the State of
Idaho. Prior to September 1991, we discontinued engaging in the business of
manufacturing and distributing of audio, cellular, C.B., radar, and other
electronic installation systems for automobiles. On September 4, 1991, we filed
a Certificate of Amendment in the State of Delaware changing our name to Drucker
Industries, Inc.

         In September 1991, we purchased the license to the "N-Viro Process" in
Japan from N-Viro Energy Systems, Ltd. for $466,063. We made a $100,000 down
payment and paid the balance by quarterly installments. We were delinquent on
minimum royalty payments due June 30, 1994 and September 30, 1994, totaling
$50,000, and consequently all rights and privileges granted to us under the
license agreement were canceled by the licensor. The license agreement costs and
net of accumulated amortization, were written-off during the year ended December
31, 1994. On December 31, 1995, we terminated any attempts in the N-Viro
business.

         On November 29, 2000, we filed a Certificate of Amendment in the State
of Delaware changing our name to Drucker, Inc.

         No activities were conducted in 1995 or 1996. In 1997, we discontinued
with our `N-Viro' business and adopted a business plan to engage in oil and gas
exploration. We then formed a new management.

<PAGE>


                              THE COMPANY BUSINESS

         General Operations

         We have had limited operations within the last five years, and such
operations have been restricted to investigation of opportunities, evaluation
and negotiations of the joint venture agreements described below, and joint
venture participations in oil exploration projects in the following geographical
areas: China in 1997, Egypt in 1999 and Algeria in 2000.

         Current Business

         We were inactive from 1994 until late 1996. Our primary business focus
is the acquisition, exploration and development of mineral properties and oil
and natural gas properties. In early 1997, we negotiated joint venture farm-in
agreements with two Vancouver based oil companies with whom the companies'
officers and directors are affiliates for a 50% interest in certain oil projects
in the People's Republic of China. The projects were unsuccessful and were
abandoned in 1998, although we retain an investment in China in the Shaanxi
exploration project which is not under active exploration. We had a
participation in the Gulf of Suez joint venture in Egypt, West Gharib which in
1999 made one oil discovery, drilled one dry hole, and drilled a third well
which was completed successfully as an appraisal well in the last quarter of
1999. By an agreement dated February 4, 2002, we agreed to dispose of our wholly
owned subsidiary Drucker Petroleum, Inc. for US$250,000 (payable in cash) and
1,000,000 common shares of Tanganyika Oil Ltd., a public company. In October
1999, the Company entered into an agreement for an interest in the North
Ghadames joint venture in Algeria. The discovery well was drilled in 1996 and
the overall three well program has been designed to prove the mega structure
concept. The second well was drilled successfully in August 2000 and the third
well was abandoned in February 2001.

         We anticipate that our business will continue to require capital to
make required financial investments under exploration joint venture agreements.
We intend to use the capital markets of the United States, Canada, and Europe to
secure the capital funding required by us and our operations. We have no
commitments for funding as of the date of this report, nor anticipated sources
of debt or equity funding, except our cash on hand.

         We will consider the following criteria when evaluating whether to
participate in an oil and gas prospect in any area of interest:

               1)      Geological and Seismic (when available) Data
               2)      Market demand for products;
               3)      Efficient transportation availability;
               4)      Location;
               5)      Weather;
               6)      Management;
               7)      Cost of participation;
               8)      Terms;
               9)      Risk vs. rewards;
              10)      Feasibility study;
              11)      Whether capital is available to fund participation.

<PAGE>

         When a property is located which the management, in our opinion,
believes holds the potential for profit, an attempt will be made to secure an
option, or lease, in the property. Shareholder approval will not be sought for
property acquisitions. Therefore, shareholders will be dependent upon the
judgment of management in selecting properties (see "Management"). If such an
interest is acquired, we will then expend funds for preliminary exploration and
testing of the property to determine the feasibility of production of such
property. Based on the results of such preliminary testing, we will decide,
without shareholder approval, whether to acquire or abandon the property. A
property may be acquired by outright purchase; by purchasing or leasing the oil,
gas or mineral rights of the property; or by exchange of the shares for leases
or interests in properties.

         We may expend funds to rework, explore or test any oil and gas
prospects we acquire to determine the economic production feasibility of such
properties. We will rely on outside consultants (none of whom have been
designated) to provide management with competent evaluation and recommendations
concerning property or interests in properties to be considered for acquisition.
We have no agreement or understanding, express or implied, with any outside
professional; and we may not be able to retain the services of competent experts
or as to the fees which such experts will charge. Based upon the results of such
exploration and tests, as interpreted by management, we will then determine
whether such properties should be acquired, explored further, sold or leased to
a third party, held for possible later development or abandoned; or whether
development to production should be attempted by us either alone or through
joint venture or other business arrangements with other companies or entities.

         The Company currently maintains its offices #1- 1035 Richards Street,
Vancouver, B.C. Canada V6B 3E4. Its telephone number is 604-681-4421.

(b)  Parents and Subsidiaries

         Parent

                DRUCKER, INC., a Delaware corporation

         Subsidiaries

                DRUCKER PETROLEUM, INC., a British Virgin Islands corporation

                DRUCKER PETROLEUM, (Algeria) INC., a British Virgin Islands
                corporation


(c)      Oil and Gas Activities.

         Our strategy with respect to our oil exploration related activities is
to identify geological areas in which we may invest for producing oil and gas
prospects, or for development joint ventures and where we may lease prospects
for oil and gas exploration. Our oil and gas exploration, development and
production activities have been limited due to lack of capital and lack of focus
in such area prior to 1997. In 1997 we received stock sale proceeds to finance
our oil & gas joint ventures. In 1998, we drilled a dry hole in China and
started to diversify our oil and gas interests outside of China. We acquired an
exploration interest in Egypt by signing a farm-in agreement in June 1998 and
then we ceased further exploration attempts in China so as to focus our efforts
in Egypt. All in all, we did not complete any successful oil or gas wells in
1998.

<PAGE>

Glossary For Oil and Gas Industry

Farm-in agreement: A lease agreement between two parties whereby one party is
acquiring petroleum rights from the other party for a consideration usually
money and/or stock.

Discovery well: In the course of drilling for oil exploration, the first well
that flows oil in a particular oil reservoir.

Appraisal well: After a discovery well, the following well that confirms the oil
flow in the same oil reservoir.

Development well: After the production from an oilfield is established, the well
that is drilled to augment the production from that oilfield.

Dry hole: A well that did not encounter commercial amounts of petroleum.

Mega structure concept: A geological structure that contains prospects of
holding large oil reserves in the order of about 1 billion barrels and usually
covering a large area of 10,000 acres (40 square kilometers) or more.

Seismic data: Data collected for a petroleum exploration method in which sound
energy is put into the earth with a source. The sound energy reflects off
subsurface sedimentary rock layers and is recorded by detectors on the surface
of the earth. An image of the subsurface rock layers is made with seismic to
find petroleum traps.

B/d: Rate of oil production in barrels per day.  A barrel contains 42 U.S.
gallons.

BOE: Barrels of oil equivalent (for natural gas) in terms of energy output.

Downhole pump: An oil pump that is located at the oil bearing layer usually
2,000 to 10,000 feet deep.

Triplex pump: A pump with three single-acting pistons in cylinders.

Joint Ventures

         West Gharib Block

         On April 27, 1998, we, through our wholly owned subsidiary, Drucker
Petroleum, Inc. (DPI), entered into a farm-in agreement to acquire an undivided

<PAGE>

20% participating  interest in the right to explore for and exploit petroleum in
a concession located in West Gharib, Gulf of Suez, Egypt. The agreement provided
that DPI shall pay:

         1.    $352,000  within seven days of the  execution  of the  agreement,
               which we paid
         2.    pay 20% of all  costs and  expenses  incurred  subsequent  to the
               execution of the agreement  related to this concession,  which we
               have paid
         3.    40% of the costs and  expenses  associated  with the  drilling of
               first two exploratory  wells to a maximum cost to us of $500,000;
               thereafter,   DPI  shall  pay  20%  of  all  costs  and  expenses
               associated  with  any  further   activity   associated  with  the
               concession, which we have paid.

         4.    In addition,  DPI provided a bank guarantee of $2,000,000  within
               seven  days of the  execution  of the  agreement,  being 40% of a
               letter of guarantee, which we have provided.

         We have the right but not the obligation to participate in additional
wells in the West Gharib, Egypt concession. We have paid and performed upon all
our obligations under the Farm In Agreement.

         Richco Investors, Inc., a publicly listed company had initially the
West Gharib project and as a result of negotiations between Richco and Drucker a
7% net profit interest (NPI) after profit and all expenses was agreed. Richco is
related to Drucker by virtue of common directors.

         At December 31, 2001 the exploration and development expenditures for
West Gharib, Egypt amount to $2,778,302 and represent the balance of costs to be
recovered. $1,918,705 are recorded on the balance sheet as deferred exploration
costs. $26,883 have been expensed as exploration costs in 2001, with $413,176
expensed in 2000 and $419,538 expensed in 1999. There is no cost recovery to
record, as this is only a notational item for determining the 7% NPI. Once
Drucker's revenue exceeds its exploration and development expenditure for West
Gharib the 7% NPI commences payable to Richco.

     Drucker  Petroleum,  Inc.,  our  wholly  owned  subsidiary,  holds  the 20%
interest.  Tanganyika Oil Company,  Ltd.,  through its wholly owned  subsidiary,
Dublin  International  Petroleum  (Egypt)  Limited,  is the operator of the West
Gharib block holding a 50% interest and Centurion Red Sea  Corporation (a wholly
owned subsidiary of Centurion Energy  International  Inc.) of Calgary,  Alberta,
holds the remaining 30% interest.

Concession Agreement

         In 1998, Tanganyika Oil Company, Ltd. acquired the interest in the West
Gharib Block pursuant to a Concession Agreement for Petroleum Exploration and
Exploitation (the "West Gharib Concession Agreement") among the Arab Republic of
Egypt through Egyptian General Petroleum Company (EGPC), a state petroleum
company of Egypt. The initial term of the agreement was three years, ending on
June 1, 2001. The term has been extended by Drucker and partners for a further
three years, ending in June, 2004, and may be extended for a further two years,
provided Drucker and partners fulfill their obligations under the agreement up
to the time of extension.

Minimum Work Obligations and Relinquishment of Concession Area

         Under the West Gharib Concession Agreement, Drucker and its partners
must pay all of the costs and expenses of the exploration and development
activities undertaken on the concession. During the initial three-year term of
the concession ending in June 2001, Drucker and its partners were required to
incur a minimum of US$5 million in exploration expenditures.


<PAGE>


Specific work obligations included drilling of three wells, acquiring at least
50 square kilometers (sq km) of three-dimensional (3D) seismic data and 300 line
kilometers (km) of two-dimensional (2D) seismic data, and reprocessing existing
seismic data. We and our partners met these requirements and extended the term
of the West Gharib Concession Agreement for three years to June, 2004.

         We and our partners are required to incur a minimum of US$1.625 million
in expenditures during the current term of the agreement. To secure the
performance of this expenditure obligation, we and our partners deposited
US$1.625 million (our share being US$325,000) with EGPC-pursuant to a letter of
guarantee. This expenditure obligation may be satisfied with expenditures
incurred during, and carried forward from, the initial term of the agreement.
Specific work obligations during the current term of the agreement include the
drilling of three exploration wells. Similar minimum expenditure requirements
and work obligations would apply if the agreement is extended for a further and
final term of two years.

         Following a commercial oil or gas discovery, the area of the concession
capable of production will be identified and that area will be governed by a
development lease between the Contractor Group (we and our partners) and EGPC.
When the initial three-year term of the concession was extended for a further
three years, 25% of the original concession area not governed by development
leases was subject to relinquishment to the Republic of Egypt. To date we and
our partners have not been required to relinquish any of the concession area. If
the term of the concession is extended for a further two years at the end of the
three-year extension, a further 25% of the original concession area not then
governed by development leases or subject to ongoing drilling or testing would
be subject to relinquishment. At the end of the two-year extension, the balance
of the original concession area not then governed by a development lease or
subject to ongoing drilling or testing would be relinquished.

Production Sharing and Bonuses

         Production from wells drilled on the concession is divided among us,
our partners and EGPC. Up to 30% of the crude oil and natural gas production
from wells drilled on the concession ("Cost Recovery Petroleum") is available to
Drucker and its partners to recover exploration, development and operating
expenses. To the extent these expenses exceed the proceeds from the sale of Cost
Recovery Petroleum in any given quarter, the excess expenses may be carried
forward into subsequent quarters. To the extent the expenses fall short of the
proceeds from the sale of Cost Recovery Petroleum in any given quarter, 70% of
the excess proceeds is payable to EGPC and 30% of the excess proceeds is payable
to us and our partners. The remaining 70% of the crude oil and natural gas
production from wells drilled on the concession ("Profit Petroleum") is divided
among us, our partners and EGPC, with the percentage received by us and our
partners declining from 30% to 15% in the case of crude oil, and 35% to 15% in
the case of natural gas, as gross average daily production over each quarter
increases from under 5,000 barrels per day (b/d) to over 100,000 b/d in the case
of crude oil, and from under 5,000 barrels of oil equivalent per day (Boe/d) to
over 25,000 Boe/d in the case of natural gas.

         Under the West Gharib Concession Agreement, a signing bonus in the
amount of US$750,000 was paid to EGPC. Additional bonuses in the amounts of US$2
million, US$3 million and US$5 million are payable to EGPC if and when average
daily production from the concession measured over a period of 30 consecutive
producing days reaches 25,000, 50,000 and 100,000 b/d, respectively.

<PAGE>

Exploration and Development

         To date, we and our partners have acquired 468.2 sq km of 3D seismic
data, 248 line km of 2D seismic data and reprocessed some of the existing 2D
seismic data. During 1999, two exploration wells and one appraisal well were
drilled on the concession, resulting in the discovery and subsequent commercial
declaration of the Hana Field and in one dry hole (Farha 1). We and our partners
have met the initial-term minimum expenditure and work obligations under the
West Gharib Concession Agreement and extended the term of the concession for a
further three years ending in June, 2004.

On June 23, 1999, we and our partners spudded the Hana-1 exploration well. The
well was drilled on the basis of 3D seismic data and encountered over 60 feet of
net pay in the Miocene aged Kareem formation and oil production tested at a
stabilized rate of 568 barrels of oil per day (b/d). The Hana-2 appraisal well
was drilled in September 1999 and encountered the top of the Kareem sand, 47
feet updip from the discovery well. The well was perforated across the entire 76
feet of net pay interval and production tested at a stabilized rate of 2,180 b/d
with zero water cut. The test rate was limited to the capacity of the bottom
hole pump. The higher structural position and thicker contiguous pay interval in
the Hana-2 well enhanced the interpretive scope and size of the reservoir. The
Hana 2 appraisal well began production at 750 b/d in late December 1999. After
about one month of production, the combined output of Hana-1 and 2 reached 2,000
b/d.

         During the first six months of 2000, an additional four wells were
drilled on the Hana Field and placed into production. On October 21, 2000, a
two-well drilling program was commenced as part of the ongoing Hana Field
development program. The Hana-7 well, drilled as a development well, encountered
62 feet of net sand pay in the Kareem formation and oil production from the well
tested at a stabilized rate of 1,500 b/d. The second of the wells, Hana-8,
encountered 40 feet of net sand pay in the Kareem reservoir and 22 feet of net
pay at a lower depth in the Rudeis formation. Since the first quarter of 2001,
production at the Hana Field has declined due to natural depletion and increased
water cut. Currently, the Hana Field is producing approximately 1,200 b/d from
six wells. We and our partners intend to drill additional infill producing wells
and water injection wells over the next several months with a view toward
boosting sustainable oil production. In January 2002, we and our partners
completed the first of a new three well exploration program currently underway
on the Concession. The first well, Hana-9, was successfully drilled and posted
initial production rates of approximately 800 barrels of oil per day from the
Kareem reservoir. The second well, Hana South-1 was spudded on February 11, 2002
and reached target depth at 5500 feet. The Hana South-1 well targeted the Kareem
and Rudeis formations and is now being tested. The Hana South-1 well is sited in
a structure adjacent to the Hana Field and may prove to be an extension of it.
The next well to be drilled after Hana South-1 will be a deep Nubia test at the
Farag structure located 12 km northwest of the Hana Field.

Infrastructure

         There are existing facilities for gathering, treating, storing and
transporting crude oil that service the producing fields within the outer
boundaries of and adjacent to the West Gharib Block. In addition, a refinery and
tanker terminal exist at Suez. Oil and gas pipelines run the length of the
concession with storage and loading facilities located adjacent to the
concession at Ras Gharib. During the last three months of 2001, permanent
production facilities including down hole pumps, triplex pumps, a storage tank
and a separator were purchased to operate the Hana Field wells. These wells had
been placed into production using rented facilities, with production transported
from the field by trucks. Construction of a proposed pipeline has been postponed
until additional discoveries have been achieved.


<PAGE>

         Algerian Concession

     We entered into an agreement to acquire 10% of the issued  capital stock of
Santa  Catalina  (Algeria) Ltd. ("SLM  Algeria"),  a company which,  through its
wholly  owned  subsidiary,  Santa  Catalina L. H. Lundin  (Algeria)  Ltd.  ("SLM
Lundin"),  entered into an agreement to acquire a 25% participating  interest in
an oil and gas concession in Algeria.

         During the current year, management decided to abandon the project due
to unsuccessful results and accordingly, related costs of $1,196,535 were
written-off to operations.

         During the last five (5) fiscal years, we conducted exploration
activities on oil and gas properties for joint venture participation in China,
Egypt and Algeria. If we acquire oil and gas prospects in the future, we may
agree to assign rights in certain properties to be drilled to the general or
managing partner of a partnership or joint venture. In such an instance we
become the owner of a working interest in the property and we will retain an
interest in the property. We actively review prospects for participation in
exploration or development drilling joint ventures, but currently have no
proposal being negotiated on any specific property, lease or asset.

         We do not own any drilling rigs, nor do we employ drilling or operating
crews. We will not be the actual contract driller of wells. If and when we
decide to drill to explore a prospect, we will contract with third-party
non-affiliated drilling companies to drill oil and gas wells on a fixed-cost
(turnkey) basis. Once a well has reached its desired depth, our company, in
consultations with experts, will then determine whether to complete such wells
and/or to plug and abandon the well. All well completion activities are
conducted under supervision of us and our consultants, by third party service
contractors. When we are merely a participant in a venture on a minority basis,
all decisions regarding drillers, operations, and consultants will be made by
third party management of the venture and not by our company.

Exploration Results

                              2001     2000       1999        Prior Years
                              ----     ----       ----        -----------
         Gas Well                0         0       0              0
         Dry Well                0         0       1              1
         Oil Well                2         6       2              0


                                  Wells Drilled
                                -----------------

                         Development                Exploratory
                        -----------------------  ----------------------

                            Productive     Dry       Productive        Dry
                           ------------    --------  -----------      -----

   2001       Egypt            1            -                -          -
              Algeria          -            -                -          1
                           ----------   ---------  --------------   ----------
              Total            1            -                -          1
                           ==========   =========  ==============   ==========
   2000       Egypt            5            -                -          -
              Algeria          -            -                1          -
                           ----------   ---------  --------------   ----------
              Total            5            -                1          -
                           ==========   =========  ==============   ==========

   1999       Egypt            1            -                1          1
              Algeria          -            -                -          -
              China            -            -                -          -
                           ----------   ---------  --------------   ----------
               Total           1            -                1          1
                           ==========   =========  ==============   ==========

   Prior years   Egypt         -            -                -          -
                 China         -            -                -          1
                           ----------   ---------  --------------   ----------
                 Total         -            -                -          1
                           ==========   =========  ==============   ==========

<PAGE>


         In the above table, a productive well is an exploratory or development
well that is not a dry well. A dry well is an exploratory or a development well
found to be incapable of producing either oil or gas in commercial quantities. A
development well is a well drilled within the proved area of an oil and gas
reservoir to the depth of an oil bearing layer horizon known to be productive.
An exploratory well is any well that is not a development well.

Financing of Oil and Gas Activities

         Our future oil and gas financing activities will be conducted primarily
pursuant to ventures with other Independent companies and through Joint Ventures
in which we may act as co-venturer ("Company-Joint Ventures") or act as a
working interest participant. We may contact some independent companies who
indicate an interest in financing the project. We are a participant in the West
Gharib, Gulf of Suez, Egypt exploration venture and in 1997, we participated in
exploration participation in China in which we paid 100% of costs for a 50%
interest in the concession and any production found. The 1997 results were one
dry hole in the China venture.

         The following table sets forth, for the years indicated, the funds
invested by us pursuant to contracts under Participation Agreements and Joint
Ventures.

<TABLE>
<CAPTION>

     Results in dollars                        Year Ended December 31,

                                  1997         1998           1999         2000            2001
<S>                            <C>          <C>          <C>            <C>             <C>
Participation Payments         1,275,217    1,262,106      977,000      1,680,663       1,548,535
Under Agreements
Deferred Exploration                                       629,290      1,628,454       1,918,705
                              ----------   ------------  -----------   -----------     -----------
                  Total        1,275,217    1,262,106    1,606,290      3,309,117       3,467,240
</TABLE>

         In 1997, we offered and sold 5,179,500 units at $1.00 per unit pursuant
to an offering memorandum. The cash proceeds of this offering have been used to
fund our operations. Also in 1997, we issued 362,565 units at $1.00 per unit for
finder's fee. For both the private placement and the finder's fee, each unit
consists of one common share and one "A" Share Purchase Warrant which will
entitle the holder thereof to acquire an additional unit at $1.50 per unit. The
additional unit consists of one common share and one "B" Warrant which will
entitle the holder to acquire one common share at $2.00 per share. In December
1998, the exercise price of "A" Warrant has been reduced from $1.50 to $0.40 and
from $2.00 to $0.60 for the "B" Warrant. The expiry of the "A" Warrant was
extended to March 31, 2000 and "B" Warrant to March 31, 2001. In February 2000,
the expiry of the "A" Warrant was extended to March 31, 2001 and "B" Warrant to
March 31, 2002. Finally in March 2001, the terms of the "A" and "B" Warrants
have been extended further to March 31, 2003 and March 31, 2004 respectively.

<PAGE>

Governmental Regulation for Oil Exploration Operations

         General - Our oil and gas production activities are subject to
extensive regulation by numerous national, state and local governmental
authorities in the countries where project participation is commenced. Taxation
and regulation of our production, transportation and sale of oil or gas, have a
significant effect on us and our operating results.

         State Regulation - The production operations are subject to regulation
by national bureaus or ministries which have authority to issue permits prior to
the commencement of drilling activities, establish allowable rates of
production, control spacing of wells, establish prices or taxes, prevent waste
and protect correlative rights, and aid in the conservation of oil and gas.
Typical state regulations require permits to drill and produce oil or gas,
protection of fresh water horizons, and confirmation that wells have been
properly plugged and abandoned.

         In Egypt the operator, Dublin International, needs to obtain drilling
permit before Dublin prepares the drill site. Dublin needs to inform Egyptian
General Petroleum Company (EGPC) before perforating and testing a new formation.
In the case of development drilling, Dublin has to satisfy EGPC that we have
kept to the well spacing requirements. Before we can produce from the oilfield,
we must show that the production rate/s can sustain commercial exploitation.
Same rules apply in Algeria.

         Environmental Matters - Various national and state authorities have
authority to regulate the production and development of oil and gas and mineral
properties with respect to environmental matters. Such laws and regulations,
presently in effect or as hereafter promulgated, may significantly affect the
cost of the workover and development activities contemplated by us and could
result in loss or liability to us in the event that our operations are
subsequently deemed inadequate for purposes of any such law or regulation. New
regulations, if adopted, could result in significant capital expenditures by us,
resulting in unprofitable operations.

Products, Services, Markets, Methods of Distribution, and Revenues.

         Oil and natural gas are presently the principal products sought to be
produced by us. Oil production commenced in first quarter 2000. At present in
Egypt, crude oil is loaded from the storage tanks onto road tanker and
transported to a nearby Gharib pipeline about 5 km away.

Working Capital Needs.

         The working capital needs consist primarily of investigation activities
and costs of participation in joint ventures. These requirements may be met by
private placement of stock or loans or sale of working interests. We may need to
develop additional working capital for future operations.


<PAGE>

Industry Segments

         Our industry's segment is the oil and gas industry. Our geographic
segments are Canada, China, Algeria and Egypt. There were no identifiable assets
in China at December 31, 2000 and 1999.

<TABLE>
<CAPTION>

                                                          December 31, 2001
                                 Canada              Egypt             Algeria            Total
<S>                       <C>               <C>                   <C>                <C>
Identifiable Assets
Current                   $  710,626        $            -        $            -     $   710,626
                         ---------------    ----------------     ---------------  -----------------
Capital assets, net            1,548                     -                     -           2,775
                         ---------------    ----------------     ---------------  ------------------
Oil and gas projects               -               513,346                     -         513,346
                         ---------------    ----------------     ---------------  ------------------
                          $  712,174        $      513,346       $                   $ 1,225,520
                         ===============    ================     ===============  ==================

                                                          December 31, 2000
                                 Canada              Egypt             Algeria            Total
Identifiable Assets
Current                   $  812,836        $            -       $             -     $   812,386
                         ---------------    ----------------     ---------------  -----------------
Capital assets, net            2,775                     -                     -           2,775
                         ---------------    ----------------     ---------------  ------------------
Oil and gas projects               -             1,842,088             1,328,663       3,170,571
                         ---------------    ----------------     ---------------  ------------------
                          $  815,161        $    1,842,088       $     1,328,633    $  3,985,912
                         ===============    ================     ===============  ==================

                                                 December 31, 1999
                              Canada                Egypt              Algeria            Total
Identifiable Assets
Current                   $1,887,666        $           -        $             -    $  1,887,666
                         ---------------    ----------------     ---------------  -----------------
Oil and gas projects               -              981,290                625,000       1,606,290
                         ---------------    ----------------     ---------------  -----------------
                          $1,877,666        $     981,290        $       625,000    $  3,493,956
                         ===============    ================     ===============  =================
</TABLE>


<PAGE>


                                 Year ended December 31,
                     2001                  2000                     1999
                     ====                  ====                     ====
Operations

Canada              $(  230,940)         $(160,639)              $(620,511)

China                         -                  -              (   70,135)

Egypt                (1,414,643)           498,282               ( 419,538)

Algeria              (1,197,267)                 -                       -
                     ===========        ==========                =========
                    $(2,824,850)           337,643             $(1,110,184)
                     ===========        ==========                =========

Dependence on a Single Customer or a Few Customers.

         During the five (5) years ending December 31, 1999, no revenues were
generated from client services. In 2000, we received oil revenues in Egypt and
we supplied exclusively under contract to General Petroleum Company, a wholly
owned subsidiary of state petroleum company of Egypt.

Backlog of Orders

         None at this time.

Government Contracts

         None.

Competitive Conditions.

         The oil and gas industry is highly competitive. We face competition
from large numbers of oil and gas companies, public and private drilling
programs and major oil companies engaged in the acquisition, exploration,
development and production of hydrocarbons in all areas in which we may attempt
to operate in the future. In Egypt and Algeria, oil and gas rights are usually
awarded to companies on a bidding contract basis. In order to be on the bidding
list, companies have to prove themselves to be credible, financially viable and
technically capable. As a junior exploration company we have very much less
leverage than major oil companies. Many of the programs and companies so engaged
possess greater financial and personnel resources than us and therefore have
greater leverage to use in acquiring prospects, hiring personnel and marketing
oil and gas. Accordingly, a high degree of competition in these areas is
expected to continue. The markets for crude oil and natural gas production have
increased substantially in recent years. Oil prices have stabilized generally,
but the world market for crude oil should be considered unstable due to
uncertainty in the Mideast. There is considerable uncertainty as to future
production levels of major oil producing countries. Significant increases in
production could create additional downward pressure on the price of oil. A
precipitous drop in oil & natural gas prices in the futures market occurred in
January 1986, and we could be adversely affected if further drops occur in the
future.

         In the past surpluses in natural gas supplies and other factors have
combined to have a negative impact on the natural gas business. Purchasers have
canceled contracts or might propose to cancel contracts. Other purchasers have
lowered the price they will pay for unregulated natural gas, which previously
commanded premium prices. Our revenues, if any ever develop, may be adversely
affected by these factors.

         Oil concessions in foreign countries are usually controlled by the
government, which after could impose taxes or restrictions at any time which
would make operations, if any, unprofitable and infeasible and cause a write-off
of capital investment in oil and gas opportunities. One such restriction could
be the insistence of hiring more oilfield workers than necessary, another could
be treatment of oilfield effluent to more stringent requirements.

<PAGE>

         A number of factors, beyond our control and the effect of which cannot
be accurately predicted, affect the production and marketing of oil and gas.
These factors include actions of foreign oil producing nations such as the
Organization of Petroleum Exporting Countries (OPEC), the availability of
adequate pipeline and other transportation facilities, the marketing of
competitive fuels and other matters affecting the availability of a ready
market, such as alternative energy resources, the emergence of electric car.

Registrant Sponsored Research and Development.

         None.

Compliance with Environmental Laws and Regulations.

         The exploration operations of our company are subject to local,
provincial and national laws and regulations in the country of Egypt, Algeria
and in China if any exploration is recommended. To date, compliance with these
regulations by us has had no material effect on our operations, capital,
earnings, or competitive position, and the cost of such compliance has not been
material. We are unable to assess or predict at this time what effect such
regulations or legislation could have on our activities in the future.

         (a) Local Regulation - We cannot determine to what extent future
operations and earnings may be affected by new legislation, new regulations or
changes in existing regulations.

         (b) National Regulation - We cannot determine to what extent future
operations and earnings may be affected by new legislation, new regulations or
changes in existing regulations.

         The value of our investments in the joint ventures may be adversely
affected by significant political, economic and social uncertainties in the area
of interest. Any changes in the policies by the government of the area of
interest could adversely affect our area of interest by, among other factors,
changes in laws, regulations or the interpretation thereof, confiscatory
taxation, restrictions on currency conversion, imports and sources of supplies,
the expropriation or nationalization of private enterprises, wars, or political
relationships with other countries.

         (c) Environmental Matters - None at the date of this report.

         (d) Other Industry Factors - Oil and gas drilling operations are
subject to hazards such as fire, explosion, blowouts, cratering and oil spills,
each of which could result in substantial damage to oil and gas wells, producing
facilities, other property and the environment or in personal injury.

Number of Persons Employed.

         As of December 31, 2001, we had one full-time consultant, A. Ken Kow,
Manager of Petroleum Operations at a salary of $5,000 Canadian per month and a
part-time employee the President, Gerald William Runolfson, at no salary based
in Vancouver, B.C.

<PAGE>


ITEM 2.  PROPERTIES

         (a)  Real Estate.          None

         (b)  Title to properties.         See "Business- Joint Venture"

         (c)  Oil and Gas Drilling Activities.  See "Business- Joint Venture"

         (d)  Oil and Gas Production.

                For the year ended December 31, 2001, our net production,
average sale price and average production cost in Egypt are as follows.

Net Crude Oil Production (Bbls)                  110,064
Average Crude Oil Sales Price ($ per Bbl)       $ 17.26
Average Production Cost ($ per Bbl)             $  6.77

         (e)  Oil and Gas Reserves.

            Our estimated oil reserves at December 31, 2000 are presented below
and they represent Drucker share before royalties deduction. The estimates of
proved reserves and related valuations were determined both by management and by
independent petroleum engineers. Estimates of proved reserves are inherently
imprecise and are continually subject to revision based on production history,
results of additional exploration and development and other factors.

         Proved reserves are reserves judged to be economically producible in
future years from known reservoirs under existing economic and operating
conditions; i.e., prices and costs as of the date the estimate is made and
assuming continuation of current regulatory practice using conventional
production methods and equipment. Proved developed reserves are those expected
to be recovered through existing wells with existing equipment and operating
methods.

                                 PROVED RESERVES

BBL of OIL                   DEVELOPED         UNDEVELOPED          TOTAL
                             ---------         -----------          -----

    Egypt                      240,061                  -           240,061
    Algeria                        -                    -                 -
                            --------------    --------------       -----------
    Total                      240,061                  -           240,061
                            ==============    ==============       ===========

         (f)   Present  value of Estimated  future Net Reserves  From Proved Oil
               and Gas Reserves in Egypt amounts to $421,994.

         (g)   Reserves  Reported to Other  Agencies.  The Hana Field proved oil
               reserves have been reported by Tanganyika  Oil Company  Ltd.(CDNX
               exchange) to Sedar.

         (h)   Natural Gas Gathering/Processing Facilities. None.

<PAGE>

         (i)   Present Activities and Subsequent Events:

               By an agreement dated February 4, 2002, we agreed to dispose of
our wholly owned subsidiary Drucker Petroleum, Inc. for US$250,000 (payable in
cash) and 1,000,000 common shares of Tanganyika Oil Ltd., a public company. The
cash payment is due on the signing of a definitive agreement which has been
signed by both parties and the issuance of shares shall occur upon the receipt
of regulatory approval. We have the option to require the purchaser to buy-back
or repurchase US$250,000 worth of the purchaser shares issued to us within six
months from the date of issuance at a guaranteed price of CDN$0.50 per share.


ITEM 3.  LEGAL PROCEEDINGS

         None at date of Registration Statement.

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

     During the shareholders'  meeting held on August 13, 2001, the shareholders
have approved  financial  statements ended 2001 and 2000. The accountant firm of
Amisano  Hanson has been  approved  as our  independent  auditor for the ensuing
year.


                                     PART II

ITEM 5. MARKET FOR THE  REGISTRANT'S  COMMON STOCK AND RELATED  SECURITY  HOLDER
MATTERS

         The Company's common stock is now traded on the "Over-the-Counter"
market on the National Quotation Bureau or the NASD Electronic Bulletin Board.
The following table sets forth high and low bid prices of the Company's common
stock for the three (3) years ended December 31, 2001, 2000 and 1999 as follows:

                                              Bid
                                     High               Low
2001
         First Quarter               .23                   .13
         Second Quarter              .19                   .11
         Third Quarter               .14                   .03
         Fourth Quarter              .05                   .03

                                              Bid
                                     High               Low
2000
         First Quarter               .55                   .325
         Second Quarter              .51                   .3
         Third Quarter                .4                    .21
         Fourth Quarter             .355                   .156

                                               Bid
                                     High                Low
1999
         First Quarter               .27                   .17
         Second Quarter              .35                   .175
         Third Quarter               .65                   .135
         Fourth Quarter             .625                   .365

<PAGE>

         Such over the counter market quotations reflect interdealer prices,
without retail mark up, mark down or commission and may not necessarily
represent actual transactions.

         (b) As of December 31, 2001 the Registrant had 375 shareholders of
record of the common stock.

         (c) No dividends on outstanding common stock have been paid within the
last two fiscal years, and interim periods. We do not anticipate or intend upon
paying dividends for the foreseeable future.


ITEM 6. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

         We (referred in this report as Drucker, Inc. and/or its subsidiaries)
present below the selected financial information and you should read them in
conjunction with our consolidated financial statements and related notes also in
this report.

<TABLE>
<CAPTION>

Selected Financial Information

                         Fiscal Year Ended December 31,
                                      2001          2000             1999           1998          1997
                                      ----          ----             ----           ----          ----
<S>                               <C>            <C>           <C>             <C>           <C>
Income Statement Data:

      Revenues from oil & gas     $1,899,252      3,167,655             0               0             0

       Cost of
       Revenues                   $  930,663      1,552,151             0               0             0

      Gross Profit                $  968,619      1,615,504             0               0             0

      Exploration Expenses        $   26,883        413,176       489,673         616,263       433,795

      General and
      Administrative
      Expenses                       234,002        229,043       218,441         182,405       247,566

      Production Expenses            745,177        565,680             0               0             0

      Depletion                      148,569        138,366             0               0             0

      Income (loss)
      from
      operations                    (186,012)       269,239    (1,245,114)       (798,668)     (681,361)

      Other income
      (expense)                       10,121         68,404       134,930         157,538       135,266

      Income (loss)
      before income
      taxes                       (2,842,520)       337,643    (1,110,184)       (641,130)     (549,814)

      Provisions for
      income taxes                         0              0             0               0             0

      Net income
      (loss) per
      common share                     (0.09)          0.01         (0.03)          (0.02)        (0.02)

      Average shares
      outstanding                 32,476,250     32,476,250    32,476,250      32,476,250    30,167,056
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                       FY              FY                FY                  FY                FY
                                      2001            2000              1999                1998              1997
                                      ----            ----              ----                ----              ----
<S>                            <C>               <C>                <C>                  <C>                <C>
Balance Sheet Data:

Current Assets                    710,626           812,386          1,887,666            2,771,380          3,489,288

Total                           1,225,520         3,985,912          3,493,956            4,033,486          4,764,502
Assets

Current                           317,880           235,422             81,109               47,455            137,341
Liabilities

Long-term debt, net
 of current portion                     0                 0                  0                    0                  0

Accumulated Deficit            (5,968,278)       (3,125,428)        (3,463,071)          (2,352,887)        (1,711,757)

Stockholders'
equity   (deficiency)             907,640         3,750,490          3,412,847            3,986,031          4,627,161

</TABLE>

RESULTS OF OPERATIONS FOR YEARS ENDED DECEMBER 31, 2000 AND 1999

         For the year ended December 31, 2001, gross oil revenue amounted to
$1,899,252 compared to $3,167,655 in 2000. This revenue was generated from oil
produced from the West Gharib project in Egypt where we have a 20% working
interest. Expenses of production were $ 745,177 for our share of production of
110,064 barrels or $6.77 per barrel, depletion was $148,569, general and
administrative costs were $234,002 and exploration expenses were $26,883, for
total expenses of $1,154,631 in 2001. In 2000, expenses of production were
$565,680, depletion was $138,366, general and administrative costs were $229,043
and exploration expenses were $413,176, for total expenses of $1,346,265 in
2000. The operating loss in 2001 was $186,012 compared to an operating income of
$269,239 in 2000. The lower price of crude oil, the depletion of wells and
increasing water cut have a negative accumulated effect on the operating income.
We had interest income of $10,121 in 2001 and $68,404 in 2000. The net loss was
$2,842,850 in 2001 which include write-down of our oil and gas projects in
Algeria and Egypt for $2,666,959. For 2000 the net income was $337,643. The loss
per share was $0.09 in 2001 compared to a profit of $0.01 in 2000.

     We incurred the following  expenses in the past fiscal year compared to the
2000 fiscal year.

<TABLE>
<CAPTION>

                                               December 31,                       December 31,
                                                       2001                               2000
<S>                                            <C>                                <C>
  OPERATING EXPENSES

  Accounting and audit fees                     $52,123                            $44,493

  Amortization                                    1,227                                905

  Consulting                                    137,999                             43,516

  Foreign exchange (gain) loss                    1,447                              1,853

  Interest and bank charges                       1,155                              1,744

  Investor communication costs                    4,040                             34,251

  Legal                                           6,065                             43,956

  Office and operating costs                     27,482                             46,986

  Transfer agent fees                             1,884                              5,857

  Travel                                            580                              5,032

  TOTAL OPERATING COSTS                        $234,002                           $229,043
                                             =============                      ===========
</TABLE>


                             EXPLORATION EXPENSES

             West             2001          2000            1999
            Gharib           Total         Total            Total

            $26,883         $26,883      $413,176         $489,673

         As we are disposing our properties in West Gharib in early 2002, our
exploration expenses for West Gharib will be significantly less in 2002.

CASH FLOWS

         We received revenues of $1,899,252 and had a net operating loss of
$186,012 for the year ending December 31, 2001. In comparison, we received
revenues of $ 3,167,655 and net operating income of $269,239 for the year ending
December 31, 2000.

CHANGES IN FINANCIAL CONDITION

         At year end 2001 our assets were $1,225,520 compared to $3,985,912 at
end of 2000. The decrease was mainly due to write-down of oil and gas properties
in Algeria and Egypt.

<PAGE>

         The liabilities, all of which are current liabilities, increased from
2000 due to larger amount of accounts payable related to expenses for the oil
exploration participation in Egypt and Algeria. At year end 2001, current
liabilities were $317,880 compared with $235,422 at year end 2000.

         Stockholders' equity at year end 2001 was $907,640, a large decrease
from 2000 stockholder's equity of $3,750,490 resulting from loss on operations.

          Without revenues from oil production and without continued capital
infusions or loans, it is doubtful that we can carry out our business goals
regarding any oil exploration operations or participations for any extended
period beyond 2002.

Results of Operations  for Year Ended  December 31, 2000 Compared to Same Period
in 1999

         We had gross oil revenues of $3,167,655 in 2000 and no oil revenues in
1999. Our interest income was $68,404 in 2000 and $134,930 in 1999.

         We participated in eight oil wells in the West Gharib, Egypt area in
2000 compared with 2 oil wells in1999. We incurred $229,043 in general and
administrative expenses in 2000 and $218,441 in 1999. We had a net operating
income of $269,239 in 2000 but incurred a loss of operations of ($1,245,114) in
1999.

         We had a net income in 2000 of $337,643 but incurred a net loss in 1999
of ($1,110,184). The net income per share was $0.01 in 2000 and the net loss per
share was ($.03) in 1999.

LIQUIDITY

         We expect that our liquidity will increase for the coming year as we
are in the process of reorganizing and re-valuating our business operations and
future opportunities.

         Short Term.

         As we are disposing our properties in Egypt in early 2002, we will be
dependent on cash reserves for our short term needs.

         We had current assets of $710,626 at December 31, 2001 and had current
liabilities of $317,880. These amounts are sufficient to us for continued
operations at the current level till the end of 2002.

         Long Term.

         On a long-term basis, we have no fixed assets and no long term debt. We
did have at year end 2001 $473,574 in cash.

         In early 2000 oil revenues have begun from West Gharib, Egypt and at
January 31, 2002 we received oil revenues from six producing wells in Egypt. We
are reliant upon success in our oil exploration ventures, at this time, for
possibility of future income, none of which are assured.

<PAGE>

CAPITAL RESOURCES

         Our primary capital resources are our stock and cash on deposit only.
Stock may be illiquid because it is restricted in an unproved company with a
short history of income generation.

ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     The response to this Item is included as a separate Exhibit to this report.
Please see pages F-1 through F-11.


ITEM  8.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
FINANCIAL DISCLOSURE

      None


                                    PART III

ITEM 9.           DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

         (a) The following table furnishes the information concerning our
directors and officers as of December 31, 2001. The directors of the Registrant
are elected every year and serve until their successors are elected and qualify.

Name                             Age     Title                            Term

Gerald William Runolfson         60      President and Director          Annual

Ernest Cheung                    51      Secretary and Director          Annual

Patrick Pak Ling Chan            47      Director and Chairman           Annual

Joseph S. Tong                   53      Director                        Annual

Ken A. Kow                       60      Director                        Annual

         The term of office for each director is one (1) year, or until his/her
successor is elected at the our annual meeting and qualified. The term of office
for each officer is at the pleasure of the board of directors.

         The board of directors have an audit committee with Gerald Runolfson,
Ernest Cheung and Joseph Tong as committee members and also have a compensation
committee with Gerald Runolfson and Ernest Cheung as committee members. There is
no nominating committee and the selection of persons or election to the board of
directors was neither independently made nor negotiated at arm's length.

         (b) Identification of  Significant Employees.

         There are no employees other than the directors disclosed above who
make, or are expected to make, significant contributions to the business, the
disclosure of which would be material.

<PAGE>

         (c)  Family Relationships. None.

         (d)  Business Experience.

         The following is a brief account of the business experience during the
past five years of each director and executive officer of the Registrant,
including principal occupations and employment during that period and the name
and principal business of any corporation or other organization in which such
occupation and employment were carried on.


                              MANAGEMENT EXPERIENCE

         Gerald William Runolfson, President and Director, age 60, has been
President and Director since 1991. He received a Bachelor of Science in Civil
Engineering in 1963 from University of Saskatchewan Canada. He studied Business
Administration 1970 - 1971 at University of Alberta, Canada. From 1988 to 2000,
he has been President of International Butec Industries Corp., Vancouver, BC, a
company involved in mining exploration but switched to high tech (smart card
technology) in 2000. He has resigned as an officer and director from Butec
effective January 29, 2001. From 1991 to 1994 he was President of N-Viro
Recovery, Inc. From 1994 to present he has been President of Elkon Products,
Inc. of Vancouver, B.C. Principal business of Elkon Products is the supply of
silica fume. Silica fume is a product 100 times finer than cement and is a
byproduct of the silicon metal manufacturing business. Elkon has the exclusive
Canadian distribution rights for all silica fume produced in Canada. The product
is used mainly in oil well cementing operation and is delivered by bulk rail car
from Quebec to Alberta and then delivered by tanker truck to the company's
customers. Major customers include the oilfield service companies: Halliburton,
BJ Services. He has been a Director of Horseshoe Gold Mines since 1991, a mining
exploration company currently focusing on diamond exploration in Northern
Canada.

     Ernest Cheung,  Secretary and Director,  age 51, received an MBA in Finance
and  Marketing  from  Queen's  University,  in  Kingston,  Ontario in 1975,  and
obtained  a  Bachelors  Degree  in Math in 1973  from  University  of  Waterloo,
Ontario.  From 1984 to 1991 he was vice  President and  Director,  Capital Group
Securities,  Ltd. in Toronto, Canada. From 1991 to 1993 he was Vice President of
Midland Walwyn Capital,  Inc. of Toronto,  Canada. From 1993 to 1994 he was Vice
Chairman, Tele Pacific International  Communications Corp. of Vancouver, B.C. He
has served or served as a director of the following companies:

<TABLE>
<CAPTION>

Name of Issuer                      Symbol  Market   Position          From     To      Business
--------------                      ------  ------   --------          ----     --      --------
<S>                                 <C>     <C>      <C>               <C>      <C>      <C>
Agro International Holdings Inc.    AOH     CDNX     President         Jan-97   Current  Agriculture
China NetTV Holdings Inc.* CTVH     OTCBB            President         May-00   Current  Set-Top Box Technology
Drucker, Inc.*.                     DKIN    OTCBB    Secretary         Apr-97   Current  Oil & Gas
ITI World Investment Group Inc.     IWI.A   CDNX                       Jun-98   Current  Beverage Distribution
NetNation Communications Inc.       NNCI    Nasdaq Small Cap.          Apr-99   Current  Domain Name
                                                                                         Registration
Pacific E-Link Corp.                PLC     CDNX                       Aug98    Current  Advertising
Richco Investors Inc.               YRU.A   CDNX     President         May-95   Current  Financial, Management,
                                                                                         Capital Market Services
Spur Ventures Inc.                  SVU     CDNX                       Mar-97   Current  Fertilizer
The Link Group Inc.*                LNKG    OTCBB    Secretary         Dec-01   Current  Internet Surveillance
Xin Net Corp.*                      XNET    OTCBB    Secretary         Mar-97   Current  China Internet

* Reporting Companies in US
</TABLE>


<PAGE>

         He has held a Canadian Securities license but is currently inactive. He
has been a Director and Secretary of Registrant and secretary since January
1997.

         Patrick Chan, age 47, has been a Director and Chairman since January
1997. He graduated from McGill University in Montreal, Quebec with a Bachelor of
Commerce in Accounting in 1977. He is a Chartered Accountant in British Columbia
(since 1980). From 1992 to 1993 he was executive assistant to the Chairman,
Solid Pacific Enterprises, a company engaged in manufacturing and distribution
of confectionery products in Hong Kong and China. From 1985 to 1992 he was
employed at Coopers & Lybrand, Toronto, Canada, and focused on mergers and
acquisitions. From 1993 to 1995 he was a registered Securities Representative
with Bache Securities. From 1955 to present, he has been a consultant to various
public and private companies in Hong Kong.

     Joseph S. Tong,  age 53, has been a director  since January 1997.  Mr. Tong
matriculated  from La Salle College,  Kowloon,  Hong Kong in 1968.  From 1986 to
1990 he was a Branch Manager for Canadian  Imperial Bank of Commerce.  From 1990
to 1994 he was  Regional  Manager,  Asian  Banking,  Canadian  Imperial  Bank of
Commerce.  From  1994 to 1995  he was  President  of  China  Growth  Enterprises
Corporation.  From 1995 to present he has been a Director, Corporate Finance, of
Corporate  Capital Group in Ontario,  Canada. He is currently a director of Agro
International  Holdings,  Inc. of Vancouver,  B.C. since January 1997 and Global
Pacific Minerals, Inc. of Vancouver, B.C. since January 1997.

         Ken A. Kow, Director, age 60, has been a director since October 2000.
He has been a consultant to the Company and as Manager, Petroleum Operations in
charge of petroleum exploration since 1997. He received a Bachelor of Science in
Chemistry in 1965 and a Ph.D in Chemistry in 1980 from University of London,
England. From 1984 to 1986, he was Manager of Core Analysis with Geotechnical
Resources, Ltd. in Calgary, Alberta and from 1986 to 1988 he was Technical
Manager with C&G Laboratories in Calgary, Alberta. From 1988 to 1997 he was
employed with Waha Oil Company as a Petroleum Analyst in Tripoli, Libya, North
Africa. He has served as Secretary since 1997 to present and as Director since
1998 to present, of Richco Investors, Inc. (CDN, and CDNX from 2000).

         (e) Directors Compensation

         Each member of the Board of Directors receives $1,000.00 plus
reasonable outside travel expenses for each Board meeting he attends and for
each Committee meeting he attends during the fiscal year. Directors who are also
officers of the Company receive no compensation for services as a director.

ITEM 10.  EXECUTIVE COMPENSATION

         (a)  Cash Compensation.

         Compensation paid for all services provided during the fiscal year
ended December 31, 2001, to each of our executive officers and to all officers
as a group is set forth below.

<PAGE>
<TABLE>
<CAPTION>


                                     SUMMARY COMPENSATION TABLE OF EXECUTIVES
                                            Annual Compensation                                        Awards

Name and                 Year          Salary ($)   Bonus         Other Annual              Restricted           Securities
Principal                                           ($)           Compensation ($)          Stock                Underlying
Position                                                                                    Award(s)($)          Options/SARs(#)
<S>                       <C>           <C>                <C>               <C>            <C>                       <C>

Gerald                    2001          0                  0                 0              0                         0
Runolfson,                2000          0                  0                 0              0                         0
President                 1999          0                  0                 0              0                         330,000 (6)

Ernest Cheung,            2001          0                  0                 0              0                         0
Secretary                 2000          0                  0                 0              0                         0
                          1999          0                  0                 0              0                         0

Patrick Chan,             2001          0                  0                 0              0                         0
Chairman                  2000          0                  0                 0              0                         0
                          1999          0                  0                 0              0                         550,000 (1)

Officers                  2001          0                  0                 0              0                         0
as a group                2000          0                  0                 0              0                         0
                          1999          0                  0                 0              0                         880,000 (6,1)
</TABLE>


    (b)  Compensation Pursuant to Option Plans.  See Executives' and Directors'
         Compensation Tables.

    (c)  Other Compensation. None. No stock appreciation rights or warrants
         exist to management

    (d)  Compensation of Directors.

         Compensation paid by us for all services provided during the fiscal
year ended December 31, 2001 to each of our directors and to all directors as a
group is set forth below:
<TABLE>
<CAPTION>

                   DIRECTOR COMPENSATION FOR LAST FISCAL YEAR

(Except for compensation of Officers who are also Directors which Compensation
is listed in Summary Compensation Table of Executives)


                                                Cash Compensation                                             Security Grants
------------------------------------------------------------------------------------------------------------------------------
Name                        Annual             Meeting          Consulting              Number          Number of Securities
                            Retainer           Fees ($)         Fees/Other              of              Underlying
                            Fees($)                             Fees($)                 Shares(#)       Options/SARs(#)
<S>                         <C>                    <C>             <C>                         <C>                   <C>
A. Director                 0                      0               24,000                      0                     0
Gerald Runolfson

B. Director                 0                      0               48,000                      0                     0
Ernest Cheung

C. Director                 0                      0                    0                      0                     0
Patrick Chan

D. Director                 0                      0                    0                      0                     0
Joseph Tong

E. Director                 0                      0                41,438                     0                     0
Ken Kow
</TABLE>


         (e)  Termination of Employment and Change of Control Arrangements.
                  None

         (f) Stock purchase options:

Share Purchase Options
     Patrick Chan                                       550,000 shares (1)
     FKT Exploration Consultants, Ltd.                  325,000 shares (2)
     Ken K Consulting, Ltd.                             325,000 shares (3)
     Cobilco Inc.                                       550,000 shares (4)
     Lancaster Pacific Investment Ltd.                  550,000 shares (5)
     Gerry Runolfson                                    300,000 shares (6)
     Yonderiche Int'l Consultants                       150,000 shares (7)
     808719 Ont. Ltd.                                   100,000 shares (8)
     Gemsco Management Ltd.                             100,000 shares (9)

         The above options were issued in November, 1999 with expiry on June 30,
2004 and are exercisable at US$0.40 per share. As of the date of this report
none of the above options has been exercised.

(1)  Mr. Chan is Chairman of the Board.
(2)  FKT Exploration Consultant, Ltd. is owned by Fred Tse, a consultant.
(3)  Ken K Consultant, Ltd. is owned by Ken Kow, a paid consultant and director.
(4)  Cobilco is owned by Raoul Tsakok, a director, of Richco Investors, Inc., a
     major shareholder.
(5)  Lancaster Pacific Investment, Ltd. is owned by Paul Chan, a consultant.
(6)  Mr. Runolfson is President and director.
(7)  Yonderiche Int'l Consultants is owned by Jack Song.
(8)  808719 Ont., Ltd. is owned and controlled by Joe Tong, a director.
(9)  Gemsco Management, Ltd. is owned and controlled by Maurice Tsakok, a
     director of Richco Investors, Inc. a major shareholder

         Section 16(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), requires the Registrant's officers and directors, and persons
who own more than 10% of a registered class of the Registrant's equity
securities, to file reports of ownership and changes in ownership of equity
securities of the Registrant with the Securities and Exchange Commission and
NASDAQ. Officers, directors and greater-than 10% shareholders are required by
the Securities and Exchange Commission regulation to furnish us with copies of
all Section 16(a) that they file. No officers, directors or 10% shareholders
have filed any Reports pursuant to Section 16(a) at year end.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         (a) Beneficial owners of five percent (5) or greater, of the
Registrant's Common Stock and Warrants: No Preferred Stock is outstanding at the
date of this offering. The following sets forth information with respect to
ownership by holders of more than five percent (5%) of the Registrant's Common
Stock known by us based upon 32,476,250 shares outstanding at December 31, 2001.

<PAGE>
<TABLE>
<CAPTION>


Title                 Name and                           Amount and                Percent
 of                   Address of                         Nature of                   of
Class                 Beneficial Owner                   Beneficial Interest       Class
-------             --------------------               -----------------------     -------
<S>                  <C>                                 <C>                        <C>
Common Stock         Richco Investors, Inc.              9,225,000(1)(2)            28.4%
                     789 West Pender St. #950
                     Vancouver, B.C. Canada V6C 1H2
</TABLE>

         (b) The following sets forth information with respect to our Common
Stock beneficially owned by each officer and director, and by all directors and
officers as a group. (Table includes options granted to officers and directors.
See Item 10(f) Stock Purchase Options.)

Title         Name of                         Amount and                Percent
of            Beneficial                      Nature of                   of
Class         Owner                           Beneficial Ownership      Class
-----         ----------                      --------------------      -------

Common        Gerald Runolfson                   512,501 (a)              1.5%
              President and Director
              4151 Rose Crescent                 812,501 (b)
              West Vancouver,                    including options        2.4%
              B.C. Canada


Common        Ernest Cheung                      9,225,000(1)             28.4%
              Secretary and Director
              6091 Richards Drive                9,775,000(1)             27.6%
              Richmond, B.C.                     including options
              Canada  V7C 5R2

Common        Patrick Chan                       0(2)                     0%
              Director and Chairman
              #7 Conduit Road, Flat 6E           550,000                  1.6%
              Hong Kong                          through options

Common        Joseph Tong, Director              0(3)                     0%
              33 Allview Crescent
              North York, Ont., Canada           100,000                  0.3%
              M2J 2R4                            share options

 Common       Ken A. Kow, Director               0(4)                     0%
              2957 E. 56Ave.
              Vancouver, BC, Canada              325,000                  0.9%
              V5S 2A2                            share options

 Common       Officers and Directors             9,737,501                29.9%
              as a group
                                                 11,562,501               32.6%
                                                 including options

<PAGE>

(a)  Porta-Pave  Industries,  Inc.  (company  owned by  Runolfson  family)  owns
     380,002 shares

(b)  Gerald  Runolfson,  individually  owns 132,499  shares and has an option to
     acquire 300,000 shares.

         (1) 9,225,000 shares are owned by Richco  Investors, Inc. of which
Ernest Cheung is a director, officer and shareholder. Richco Investors, Inc. is
beneficially owned by Raoul Tsakok through ownership of 50%+ shares of common
stock of Richco Investors, Inc.  Mr. Raoul Tsakok, through Cobilco, Inc., has an
option to acquire 550,000 shares.
       (2) Mr. Chan has an option to acquire 550,000 shares.
       (3) Joseph Tong (through 808719 Ont. Ltd.) owns a 100,000 share option.
       (4) Ken Kow (through Ken K Consulting Ltd.) owns a 325,000 share option.

         Ken Kow is a full time consultant to us. He has extensive experience in
oil and gas industry and has represented us at partners' technical meetings. He
has also served as Manager of Exploration, Drucker Inc. providing input for
daily drilling reports and geological interpretation. Besides his involvement in
technical matters, he has helped in the general management of Drucker. The
options granted to Ken K Consulting Ltd. were a form of compensation in addition
to cash consulting fees.


ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Certain Transactions

         Our interest in the West Gharib Egyptian oil and gas concession has
been subject to a 7% net profit interest payable to a related company Richco
Investors, Inc. after we have recovered all our exploration and development
expenditures. Richco is related by virtue of common directors, Messrs Kow and
Cheung.

     Oil and gas project  costs - advances to (due from) project are advanced to
companies,  Drucker Petroleum, Inc. and Drucker Petroleum (Algeria), Inc. , with
common  directors  Ernest  Cheung  and  Gerald  Runolfson.  These  advances  are
unsecured,  non-interest  bearing and have no specific terms for  repayment.  In
fiscal year 2001, Drucker Inc. has advanced to Drucker Petroleum Inc. $2,197,128
for the Egyptian  Project and has advanced to Drucker  Petroleum  (Algeria) Inc.
$1,297,619 for the Algerian Project.

         Certain employees, officers, directors, and affiliates were granted
options in November 1999. The options are exercisable at $0.40 per share and
extend until June 30, 2004. The granting of these options for their services
have been very favorable to us as these services are necessary and are provided
at no monetary cost to us.

1.   Mr. Chan,  who is Chairman of the Board,  was granted an option for 550,000
     shares,  for his  negotiation  for oil  concessions  in  China  and for his
     contributions  in the  areas of  regulatory  matters,  Chinese  oil and gas
     market conditions and strategies aimed at penetrating that market.

2.   FKT Exploration  Consultants,  Ltd. is owned by Fred Tse, a consultant.  It
     received a 325,000  share option for their  contribution  in assessing  the
     risks and rewards of global  geological plays, in advising on joint venture
     drilling targets and in advising on drilling and completion progress.

<PAGE>


3.   Ken K  Consultant,  Ltd.  is  owned  by Ken Kow,  a paid  consultant  and a
     director.  It received a 325,000 share option for  providing  technological
     information   on   drilling   and  for   geological   interpretation,   for
     technological  research  in new  joint  venture,  and for  his  help in the
     general management of Drucker.

4.   Cobilco is owned by Raoul Tsakok, a director, of Richco Investors,  Inc., a
     majority shareholder.  Cobilco was granted a 550,000 share option for their
     role as advisor on strategic  issues,  oil and gas industry  market trends,
     and financial and capital market issues.

5.   Lancaster Pacific Investment,  Ltd. is owned by Paul Chan, a consultant. It
     received a 550,000  share  option for their  contributions  in the areas of
     regulatory  matters,  Chinese oil and gas market  conditions and strategies
     aimed at penetrating that market

6.   Mr. Runolfson is President and director. He received a 300,000 share option
     for the general management of Drucker,  investor  relations,  financial and
     capital market matters and for services as a director.

7.   Yonderiche  Int'l  Consultants is owned by Jack Song. It received a 100,000
     share  option for their  services  rendered  in matters  regarding  Chinese
     government  policies and  regulations and for their work in negotiating oil
     concessions in China.

8.   808719 Ont.  Ltd. is owned and  controlled  by Joseph Tong, a director.  It
     received a 100,000 share option for services rendered as director.

9.   Gemsco  Management,  Ltd.  is owned and  controlled  by Maurice  Tsakok,  a
     director of Richco Investors, Inc. a major shareholder. It received 100,000
     share  option  for  designing  and  implementing  our  corporate  , and for
     advising on computer and internet technology.


ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

         (a)  Financial Statements and Schedules.  The following financial
statements and schedules for Drucker, Inc., as of December 31, 2001 and 2000 are
filed as part of this report.

         (b) Exhibits Reports on Form 8-K

                1)   8-K filed 6/27/01 *  2) 8-K filed 2/13/02 *
                        *Previously Filed




<PAGE>


                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                              DRUCKER, INC.

Date: April 10, 2002                     By: /s/ Gerald William Runolfson
                                             -----------------------------------
                                             Gerald Runolfson, 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 registrant and
in the capacities and on the dates indicated.

Date: 4/10/2002                          By: /s/ Gerald William Runolfson
                                             -----------------------------------
                                             Gerald William Runolfson,
                                             President and Director


Date: 4/10/2002                              /s/ Ernest Cheung
                                             -----------------------------------
                                             Ernest Cheung, Secretary and
                                             Director


Date: 4/10/2002                              /s/ Patrick Pak Ling Chan
                                             -----------------------------------
                                             Patrick Pak Ling Chan, Chairman and
                                             Director


Date: 4/10/2002                              /s/ Joseph S. Tong
                                             -----------------------------------
                                             Joseph S. Tong, Director


Date: 4/10/2002                              /s/ Ken A. Kow
                                             -----------------------------------
                                             Ken A. Kow

<PAGE>

                                  DRUCKER, INC.

                  REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

                           December 31, 2001 and 2000

                            (Stated in U.S. dollars)
                             ----------------------




<PAGE>

                                 Amisano Hanson
                             Chartered Accountants
                        750 W. Pender Street, Suite 604
                              Vancouver BC V6C 2T7
                                     Canada
                             Phone: (604) 689-0188
                              Fax: (604) 689-9773




                          INDEPENDENT AUDITORS' REPORT

To the Stockholders,
Drucker, Inc.

We have audited the accompanying consolidated balance sheets of Drucker, Inc.
and subsidiaries as of December 31, 2001 and 2000 and the related consolidated
statements of operations, stockholders' equity and cash flows for each of the
years in the three year period ended December 31, 2001. 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 audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements
are free of material misstatement. An audit includes examining on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, these consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Drucker,
Inc. and subsidiaries, as of December 31, 2001 and 2000 and the results of their
operations and their cash flows for each of the years in the three year period
ended December 31, 2001, in conformity with accounting principles generally
accepted in the United States of America.

/s/ Amisano Hanson
Vancouver, Canada
March 14, 2002                                             Chartered Accountants


                                      F-1

<PAGE>
<TABLE>
<CAPTION>

                                          DRUCKER, INC.
                                   CONSOLIDATED BALANCE SHEETS
                                   December 31, 2001 and 2000
                                    (Stated in U.S. dollars)
                                     ----------------------


                                                   ASSETS
                                                                                 2001              2000
                                                                                 ----              ----
<S>                                                                         <C>               <C>
Current
   Cash and cash equivalents - Note 3                                       $      473,574    $      458,119
   Accounts receivable                                                             136,044           352,710
   Prepaid expenses                                                                  1,008             1,557
   Due from a related party - Note 7                                               100,000                 -
                                                                            ---------------   ---------------
                                                                                   710,626           812,386
Capital assets - Note 4                                                              1,548             2,775
Oil and gas projects - Note 5                                                      513,346         3,170,751
                                                                            ---------------   ---------------
                                                                            $    1,225,520    $    3,985,912
                                                                            ===============   ===============
                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current
   Accounts payable and accrued expenses                                    $      317,880    $      235,422
                                                                            ---------------   ---------------
Stockholders' Equity - Note 6
   Common stock $.001 par value,
    authorized 50,000,000 shares:
    32,476,250 shares issued and outstanding                                        32,115            32,115
Additional paid-in capital                                                       6,843,803         6,843,803
Deficit                                                                        ( 5,968,278)      ( 3,125,428)
                                                                            ---------------   ---------------
Total stockholders' equity                                                         907,640         3,750,490
                                                                            ---------------   ---------------
                                                                            $    1,225,520    $    3,985,912
                                                                            ===============   ===============
Nature of Operations - Note 1
Commitments - Note 6
Subsequent Event - Note 10

</TABLE>


                             SEE ACCOMPANYING NOTES

                                      F-2

<PAGE>
<TABLE>
<CAPTION>


                                          DRUCKER, INC.
                              CONSOLIDATED STATEMENTS OF OPERATIONS
                      for the years ended December 31, 2001, 2000 and 1999
                                    (Stated in U.S. dollars)
                                     ----------------------


                                                                                                      (Note 13)
                                                                     2001              2000             1999
                                                                     ----              ----             ----
<S>                                                            <C>               <C>              <C>
Revenue
   Oil and natural gas                                         $     1,899,252   $     3,167,655  $             -
   Royalties                                                      (    930,633)     (  1,552,151)               -
                                                               ----------------  ---------------- ----------------
                                                                       968,619         1,615,504                -
   Interest income                                                      10,121            68,404          134,930
                                                               ----------------  ---------------- ----------------
                                                                       978,740         1,683,908          134,930
                                                               ----------------  ---------------- ----------------
Expenses
   Production - Schedule 1                                             745,177           565,680                -
   Depletion                                                           148,569           138,366                -
   General and administrative expenses - Schedule 2                    234,002           229,043          218,441
   Exploration expenses - Schedule 3                                    26,883           413,176          489,673
   Non-cash compensation charge - Note 13                                    -                 -          537,000
                                                               ----------------  ---------------- ----------------
                                                                     1,154,631         1,346,265        1,245,114
                                                               ----------------  ---------------- ----------------
Net income (loss) before other item                               (    175,891)          337,643     (  1,110,184)
Other item:
Write-down of oil and gas projects                                (  2,666,959)                -                -
                                                               ----------------  ---------------- ----------------
Net income (loss)                                              $  (  2,842,850)  $       337,643  $  (  1,110,184)
                                                               ================  ===============  ================
Basic income (loss) per share                                  $  (      0.09)   $         0.01   $  (      0.03)
                                                               ================  ===============  ================
Diluted income (loss) per share                                $             -   $         0.01   $         -
                                                               ================  ===============  ================
Weighted average shares outstanding - basic                         32,476,250        32,476,250       32,476,250
                                                               ================  ===============  ================
Weighted average shares outstanding - diluted                       40,968,315        40,968,315                -
                                                               ================  ===============  ================

</TABLE>


                             SEE ACCOMPANYING NOTES

                                      F-3



<PAGE>
<TABLE>
<CAPTION>



                                                         DRUCKER, INC.
                                              CONSOLIDATED STATEMENTS OF CASH FLOW
                                      for the years ended December 31, 2001, 2000 and 1999
                                                    (Stated in U.S. dollars)
                                                     ----------------------


                                                                                                      (Note 13)
                                                                     2001              2000             1999
                                                                     ----              ----             ----
<S>                                                            <C>               <C>              <C>
Cash flow from operating activities:
   Net income (loss)                                           $ (   2,842,850)  $       337,643  $ (   1,110,184)
   Add (deduct) items not affecting cash:
     Write-down of oil and gas projects                              2,666,959                 -                -
     Write-off of accounts payable                                           -      (      3,475)               -
     Write-off of advances                                                   -             8,202                -
     Project advances written-off                                            -                 -           35,427
     Depletion and amortization                                        149,796           139,271
     Non-cash compensation charge                                            -                 -          537,000
   Net changes in working capital items related to operations:
    Accrued interest receivable                                            648            10,227    (       5,475)
    Accounts receivable                                                216,018      (    351,979)               -
    Prepaid expenses                                                       549      (        468)           1,180
    Advances receivable                                                      -                 -    (       8,202)
    Accounts payable and accrued expenses                               82,458           157,788           33,654
                                                               ----------------  ---------------- ----------------
Net cash provided by (used in) operating activities                    273,578           297,209    (     516,600)
                                                               ----------------  ---------------- ----------------
Cash flow used in investing activities
   Purchase of capital assets                                                -     (       3,680)               -
   Oil and gas project costs                                     (     158,123)    (   1,702,827)   (     379,611)
   Due from a related party                                      (     100,000)                -                -
                                                               ----------------  ---------------- ----------------
Net cash used in investing activities                            (     258,123)    (   1,706,507)   (     379,611)
                                                               ----------------  ---------------- ----------------
Net increase (decrease) in cash                                         15,455      (  1,409,298)   (     896,211)

Cash and cash equivalents, beginning of period                         458,119         1,867,417        2,763,628
                                                               ----------------  ---------------- ----------------
Cash and cash equivalents, end of period                       $       473,574   $       458,119  $     1,867,417
                                                               ================  ================ ================
Cash and cash equivalents consist of:
   Cash (cash overdraft)                                       $  (     82,494)  $        28,119  $       186,417
   Term deposit                                                        556,068           430,000        1,681,000
                                                               ----------------  ---------------- ----------------
                                                               $       473,574   $       458,119  $     1,867,417
                                                               ================  ================ ================
</TABLE>


                             SEE ACCOMPANYING NOTES

                                      F-4


<PAGE>
<TABLE>
<CAPTION>



                                                  DRUCKER, INC.
                                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                               (DEFICIENCY) for the years ended December 31, 1999
                                              to December 31, 2001
                                            (Stated in U.S. dollars)
                                             ----------------------


                                                                               Additional
                                                      Common Stock               Paid-in
                                                 Shares          Amount          Capital         Deficit         Total
                                                 ------          ------          -------         -------         -----
<S>                                              <C>         <C>             <C>             <C>             <C>
Balance, December 31, 1998                       32,476,250  $       32,115  $    6,306,803  $ (  2,352,887) $    3,986,031

Net loss for the year ended
 December 31, 1999, as restated                           -               -               -    (  1,110,184)   (  1,110,184)
Adjustment to previously reported
 amounts:
   Non-cash compensation charge
    - Note 13                                             -               -         537,000               -         537,000
                                                 ----------  --------------  --------------  --------------- ---------------
Balance, December 31, 1999, as restated          32,476,250          32,115       6,843,803    (  3,463,071)      3,412,847
Net income for the year ended
 December 31, 2000                                        -               -               -         337,643         337,643
                                                 ----------  --------------  --------------  --------------- ---------------
Balance, December 31, 2000                       32,476,250          32,115       6,843,803    (  3,125,428)      3,750,490
Net loss for the year ended
 December 31, 2001                                        -               -               -    (  2,842,850)   (  2,842,850)
                                                 ----------  --------------  --------------  --------------- ---------------
Balance, December 31, 2001                       32,476,250  $       32,115  $    6,843,803  $ (  5,968,278) $      907,640
                                                 ==========  ==============  --------------  --------------- ---------------
</TABLE>

                             SEE ACCOMPANYING NOTES

                                      F-5

<PAGE>
<TABLE>
<CAPTION>


                                          DRUCKER, INC.                         Schedule 1
                          CONSOLIDATED SCHEDULE OF PRODUCTION EXPENSES
                      for the years ended December 31, 2001, 2000 and 1999
                                    (Stated in U.S. dollars)
                                     ----------------------


                                                 2001             2000              1999
                                                 ----             ----              ----
<S>                                        <C>               <C>              <C>
Administration                             $      112,301    $      145,906   $            -
General operating expenses                         54,805            77,339                -
Handling and trucking                             578,071           342,435                -
                                           --------------    --------------   --------------
                                           $      745,177    $      565,680   $            -
                                           ==============    ==============   ==============
</TABLE>



                             SEE ACCOMPANYING NOTES

                                      F-6

<PAGE>
<TABLE>
<CAPTION>




                                          DRUCKER, INC.                         Schedule 2
                              CONSOLIDATED SCHEDULE OF GENERAL AND
                           ADMINISTRATIVE EXPENSES for the years ended
                                December 31, 2001, 2000 and 1999
                                    (Stated in U.S. Dollars)
                                     ----------------------


                                                                     2001              2000             1999
                                                                     ----              ----             ----
<S>                                                            <C>               <C>              <C>
Accounting and audit fees                                      $        52,123   $        44,943  $        40,011
Amortization                                                             1,227               905                -
Consulting - Note 7                                                    137,999            43,516           54,436
Foreign exchange loss                                                    1,447             1,853            1,866
Interest and bank charges                                                1,155             1,744            2,421
Investor communication costs                                             4,040            34,251           28,118
Legal                                                                    6,065            43,956           27,852
Office and Operating costs - Note 7                                     27,482            46,986           40,370
Transfer agent fees                                                      1,884             5,857            1,632
Travel                                                                     580             5,032           21,735
                                                               ---------------   ---------------- ---------------
                                                               $       234,002   $       229,043  $       218,441
                                                               ===============   ================ ===============

</TABLE>


                             SEE ACCOMPANYING NOTES

                                      F-7

<PAGE>
<TABLE>
<CAPTION>


                                                         DRUCKER, INC.                               Schedule 3
                                         CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
                               for the years ended December 31, 2001, 2000 and 1999
                                                    (Stated in U.S. Dollars)
                                                     ----------------------


                                                       West             2001              2000              1999
                                                      Gharib            Total             Total            Total
                                                      ------            -----             -----            -----
<S>                                              <C>              <C>               <C>               <C>
Administration                                   $             -  $             -   $         2,306   $        76,266
Consumables                                                    -                -                 -            77,924
Development costs                                              -                -                 -             4,139
Drilling                                                  18,537           18,537                 -           167,965
Geological/geophysical                                         -                -             8,649            70,157
Project advances written-off                                   -                -                 -            65,406
Seismic expenditures                                       8,346            8,346           402,221                 -
Travel                                                         -                -                 -             4,729
Wages and benefits                                             -                -                 -            23,087
                                                 ---------------  ---------------   ---------------   ---------------
                                                 $        26,883  $        26,883    $      413,176   $       489,673
                                                 ===============  ===============   ===============   ===============

</TABLE>


                             SEE ACCOMPANYING NOTES

                                      F-8

<PAGE>



                                  DRUCKER, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                           December 31, 2001 and 2000
                            (Stated in U.S. Dollars)
                             ----------------------


Note 1        Nature of Operations
              --------------------

              The Company is in the business of exploration, development and
              production of oil and gas in Egypt and Algeria. The Company
              entered into the oil and gas resource exploration business in 1997
              when the Company negotiated farm-in agreements for a 50% interest
              in certain oil projects in China. These projects were unsuccessful
              and were abandoned during the years ended December 31, 1998 and
              1999. During the year ended December 31, 1998, the Company entered
              into agreements in certain oil projects in Egypt and commenced
              exploration in 1999. Also during the year ended December 31, 1999,
              the Company entered into an agreement for an interest in an oil
              and gas exploration joint venture in Algeria. During the year
              ended December 31, 2000, the Company's oil and gas project in
              Egypt went into production. During the year ended December 31,
              2001, the Company maintained its oil and gas interests in Egypt
              and abandoned its Algerian property. Subsequent to the year end,
              the Company sold its Egyptian property and is currently exploring
              new business ventures.

              The Company was incorporated in Idaho on February 4, 1971, as
              Monetary Metals, Inc. On December 14, 1989, the Company acquired
              all the net assets of Drucker Sound Design, Inc. in exchange for
              2,700,000 shares (13,500,000 shares after split) of common stock.
              On December 30, 1989, the Company changed its name to Drucker
              Sound Design, Inc., and on June 19, 1990, the Company changed its
              domicile to Delaware. On September 5, 1991, the Company changed
              its name to Drucker Industries, Inc., and forward split the
              outstanding shares of common stock on the basis of five for one.
              On November 29, 2000, the Company changed its name to Drucker,
              Inc.

Note 2        Summary of Significant Accounting Policies
              ------------------------------------------

              The consolidated financial statements of the Company have been
              prepared in accordance with generally accepted accounting
              principles in the United States of America. Because a precise
              determination of many assets and liabilities is dependent upon
              future events, the preparation of financial statements for a
              period necessarily involves the use of estimates which have been
              made using careful judgement. Actual results may vary from these
              estimates.

              The consolidated financial statements have, in management's
              opinion been properly prepared within reasonable limits of
              materiality and within the framework of the significant accounting
              policies summarized below:

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

              These consolidated financial statements include the accounts of
              Drucker, Inc. and its wholly-owned subsidiaries, Drucker
              Petroleum Inc. ("DPI") and Drucker Petroleum (Algeria) Inc.
              ("DPA").  DPI and DPA were incorporated by the Company in the
              British Virgin Islands on April 16, 1998 and September 22, 1999,
              respectively.  All inter-company transactions have been
              eliminated.

              Cash Equivalents
              ----------------

              The Company considers all highly liquid debt instruments with
              original maturities of three months or less to be cash
              equivalents.

              Capital Assets
              --------------

              Capital assets are comprised of computer equipment and are
              recorded at cost. The Company amortizes its computer equipment
              using the straight-line method over three years.


                                      F-9

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 2
(Stated in U.S. dollars)
------------------------

Note 2        Summary of Significant Accounting Policies - (cont'd)
              ------------------------------------------

              Impairment of Long-lived Assets
              -------------------------------

              The Company reports the impairment of long-lived assets and
              certain identifiable intangibles in accordance with Statement of
              Financial Accounting Standards No. 121, "Accounting for the
              Impairment of Long-lived Assets for Long-lived Assets to be
              Disposed Of". Certain long-lived assets and identifiable
              intangibles held by the Company are reviewed for impairment
              whenever assets or changes in circumstances indicate the carrying
              amount of an asset may not be recoverable. Accordingly, an
              impairment loss is recognized in the period it is determined.

              Oil and Gas Project Costs
              -------------------------

              The Company uses the successful efforts method of accounting for
              oil and gas producing activities. Costs to acquire mineral
              interests in oil and gas properties, to drill and equip
              exploratory wells that find proved reserves, and to drill and
              equip development wells are capitalized. Costs to drill
              exploratory wells that do not find proved reserves, geological and
              geophysical costs, and costs of carrying the retaining unproved
              properties are expensed.

              Unproved oil and gas properties that are individually significant
              are periodically assessed for impairment of value, and a loss is
              recognized at the time of impairment by providing an impairment
              allowance. Other unproved properties are amortized based on the
              Company's experience of successful drilling and average holding
              period. Capitalized costs of producing oil and gas properties,
              after considering estimated dismantlement and abandonment costs
              and estimated salvage values, are depreciated and depleted by the
              unit-of-production method. Support equipment and other property
              and equipment are depreciated over their estimated useful lives.

              Investments in a company that is organized for the sole purpose of
              holding an indirect interest in oil and gas concessions and such
              investment is less than a 20% investment is accounted for under
              the above noted oil and gas project costs policy rather than as a
              investment recorded on the cost basis (Note 5 - Algerian
              Concession).

              Environmental Costs
              -------------------

              Environmental expenditures that relate to current operations are
              expensed or capitalized as appropriate. Expenditures that relate
              to an existing condition caused by past operations, and which do
              not contribute to current or future revenue generation, are
              expensed. Liabilities are recorded when environmental assessments
              and/or remedial efforts re probable, and the cost can be
              reasonably estimated. Generally, the timing of these accruals
              coincides with the earlier of:

              i)  completion of a feasibility study;  or

              ii) the Company's commitment to a plan of action based on the then
              known facts.

              Income Taxes

              The Company uses the liability method of accounting for income
              taxes pursuant to Statement of Financial Accounting Standards, No.
              109 "Accounting for Income Taxes".


                                      F-10

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 3
(Stated in U.S. dollars)
------------------------

Note 2        Summary of Significant Accounting Policies - (cont'd)
              ------------------------------------------

              Basic and Diluted Earnings (Loss) Per Share
              -------------------------------------------

              The Company reports basic loss per share in accordance with
              Statement of Financial Accounting Standards No. 128, "Earnings Per
              Share". Basic loss per share is computed using the weighted
              average number of shares outstanding during the year. Diluted
              earnings per share includes the potentially dilutive effect of
              outstanding common stock options and warrants which are
              convertible to common shares. Diluted loss per share has not been
              provided for 2001 and 1999 as it would be anti-dilutive.

              Values
              ------

              The amounts shown for oil and gas project costs represent costs to
              date and do not necessarily reflect present or future values.

              Foreign Currency Translation
              ----------------------------

              Foreign currency translations are translated into US dollars, the
              functional and reporting currency, by the use of the exchange rate
              in effect at the date of the transaction, in accordance with
              Statement of Financial Accounting Standards No. 52. "Foreign
              Currency Translation". At each balance sheet date, recorded
              balances that are denominated in a currency other than US dollars
              are adjusted to reflect the current exchange rate.

              Stock-based Compensation
              ------------------------

              The Company has elected to account for  stock-based  compensation
              following APB No. 25, "Accounting for Stock Issued to Employees",
              and  provide  the  disclosures   required  under  SFAS  No.  132,
              "Accounting for Stock-based Compensation" (Note 6).

Note 3        Cash Equivalents
              ----------------

              At December 31, 2001, included in cash and cash equivalents was a
              financing deposit of $325,000 as required by an extension to the
              initial farm-out agreement (Note 5). This deposit was held as
              collateral for a letter of guarantee. The deposit was to be used
              as payment for the costs incurred during the second three year
              term of the farm-out agreement for the concession located in West
              Gharib, Gulf of Suez, Egypt.

<TABLE>
<CAPTION>

Note 4        Capital Assets
              --------------

                                                                  2001                                2000
                                              -----------------------------------------------    ---------------
                                                               Accumulated
                                                   Cost       Amortization         Net                Net
<S>                                           <C>            <C>             <C>                 <C>
             Computer equipment               $       3,680  $       2,132   $       1,548       $       2,775
                                              =============  =============   =============       =============

</TABLE>


                                      F-11

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 4
(Stated in U.S. dollars)
------------------------

Note 5        Oil and Gas Projects - Note 10
              --------------------

                                                       2001            2000
                                                       Total           Total
             West Gharib, Egypt Concession
               Acquisition costs
               Cash                               $    352,000    $    352,000
               Deferred exploration costs            1,918,705       1,628,454
               Depletion                              (286,935)       (138,366)
               Write-down of property               (1,470,424)              -
                                                  -------------   -------------
                                                       513,346       1,842,088
                                                  -------------   -------------
             Algerian Concession
               Acquisition costs                     1,196,535       1,328,663
               Write-down of property               (1,196,535)              -
                                                  -------------   ------------
                                                             -       1,328,663
                                                  ------------    ------------
             Total property costs                 $    513,346    $  3,170,751
                                                  =============   ============

              West Gharib Concession

                  On April 27, 1998, DPI entered into a farm-out agreement to
                  acquire an undivided 20% participating interest in the right
                  to explore for and exploit petroleum in a concession located
                  in West Gharib, Gulf of Suez, Egypt.

                  DPI shall pay:

                  -   $352,000 within seven days of the  execution of the agree-
                      ment (paid)

                  -   pay 20% of all costs and expenses incurred subsequent to
                      the execution of the agreement related to this concession.

                  -   40% of the costs and expenses associated with the drilling
                      of an exploratory well to a maximum cost to the Company of
                      $500,000 (paid); thereafter, DPI shall pay 20% of all
                      costs and expenses associated with any further activity
                      associated with the concession.

                  In addition, DPI provided a bank guarantee of $2,000,000
                  within seven days of the execution of the agreement, being 40%
                  of a letter of guarantee. These funds were expended during the
                  first three year term of the concession agreement. The Company
                  and its partners extended the terms of the West Gharib
                  agreement for three years to June, 2004. Consequently, the
                  Company provided a second bank guarantee, of $325,000, which
                  was outstanding at December 31, 2001.

                  DPI's interest in this oil and gas concession is subject to a
                  7% net profit interest payable to a related company, after DPI
                  has recovered all of its exploration and development
                  expenditures. This company is related by virtue of common
                  directors.

                  On February 4, 2002, the Company had agreed to dispose of its
                  interest in this concession. Consequently at December 31,
                  2001, the Company wrote-down the carrying value of the
                  concession to its estimated net recoverable value.


                                      F-12

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 5
(Stated in U.S. dollars)
------------------------

Note 5        Oil and Gas Project Costs - Note 10 - (cont'd)
              -------------------------

              Algerian Concession

                  By a letter of intent dated October 27, 1999, the Company
                  acquired 10% of the issued capital stock of Santa Catalina
                  (Algeria) Ltd. (Algeria Concession SLM Algeria"), a company
                  which, through its wholly-owned subsidiary, Santa Catalina
                  L.H. Lundin (Algeria) Ltd. ("SLM Lundin"), entered into an
                  agreement to acquire a 25% participating interest in an oil
                  and gas concession in Algeria.

                  During the year ended December 31, 2001, the Company abandoned
                  its interest in the property and wrote-off costs totalling
                  $1,196,535.

Note 6        Common Stock
              ------------

              Commitments

              Share Purchase Warrants

              At December 31, 2001, 5,542,065 share purchase warrants are
              outstanding. Each warrant entitles the holder to purchase one
              additional unit of the Company at $0.40 per unit until the earlier
              of March 31, 2003 and the 90th day after the day on which the
              weighted average trading price of the Company's shares exceed
              $0.60 per share for 10 consecutive trading days. Each unit
              consists of one common share of the Company and one additional
              warrant. Each additional warrant entitles the holder to purchase
              one additional common share of the Company at $0.60 per share. The
              additional warrants will expire one year after the occurrence of
              the exercise of the original warrants.

              Stock-based Compensation

              Effective November 30, 1999, the Company granted stock options to
              officers, directors and employees of the Company and consultants
              to the Company to purchase common shares of the Company at the
              closing price of the Company's common stock on the date of the
              grant. Options are not granted to anyone other than the
              aforementioned individuals. The options have been granted with a
              term of 4 1/2 years. There are no specific vesting requirements
              under the options.

              Presented below is a summary of the stock option activity for the
              years shown:

<TABLE>
<CAPTION>

                                                                    Number of         Weighted Average
                                                                  Stock Options        Exercise Price
                                                                  -------------       ----------------
<S>                                                                  <C>                     <C>
              Balance, December 31, 1999, 2000 and 2001              2,950,000               $0.40
</TABLE>


              The number of stock options outstanding is equal to the number
              exercisable as there are no vesting provisions.


                                      F-13

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 6
(Stated in U.S. dollars)
------------------------

Note 6        Common Stock - (cont'd)
              ------------

              Commitment - (cont'd)

              Stock-based Compensation - (cont'd)

              The Company grants stock options at exercise prices equal to the
              fair market value of the Company's stock at the date of the grant.
              Pursuant to APBO No. 25, the compensation charge associated with
              consultants' options has been recorded in the financial
              statements. The compensation charge associated with employees'
              options (officers, directors and employees) is not recognized in
              this circumstance but included in the pro-forma amounts.

<TABLE>
<CAPTION>

                                                                       2001              2000             1999
                                                                       ----              ----             ----
<S>                                                              <C>            <C>               <C>
             Total non-cash compensation charge                  $        -     $           -     $     892,487
             Consultants' non-cash compensation charge                    -                 -          (537,000)
                                                                 ----------     -------------     --------------
             Employee's non-cash compensation charge             $        -     $           -     $     355,487
                                                                 ==========     =============     ==============
</TABLE>


              Under SFAS No. 123, if the Company elects to follow APBO No. 25,
              in respect to the employees stock options, it is required to
              present pro-forma information as to the effect on income and
              earnings per share as if the Company had accounted for its
              employee stock options under the fair value method of that
              statement. Had compensation cost been determined based on the fair
              value at the grant dates for those options issued to directors and
              employees, the Company's net loss and loss per share would have
              been adjusted to the pro-forma amounts indicated below:

<TABLE>
<CAPTION>

                                                                   2001              2000              1999
                                                                   ----              ----              ----
<S>                                            <C>            <C>               <C>               <C>
             Net income (loss)                 As reported    $ (2,842,850)     $     337,643     $ ( 1,110,184)
                                               Pro-forma      $ (2,842,850)     $     337,643     $ ( 1,465,671)

             Basic income (loss) per share     As reported    $ (      0.09)    $        0.01     $ (      0.03)
                                               Pro-forma      $ (      0.09)    $        0.01     $ (      0.05)
             Diluted income (loss) per share   As reported    $        -        $        0.01     $        -
                                               Pro-forma      $        -        $        0.01     $        -
</TABLE>

              Pro-forma diluted loss per share for 1999 has not been presented
              because assuming the conversion of stock options and warrants
              would have an anti-dilutive effect.

              The weighted average fair value at date of grant of the options
              granted were as follows:

<TABLE>
<CAPTION>

                                                                2001              2000              1999
                                                                ----              ----              ----
<S>                                                        <C>               <C>               <C>
             Weighted average fair value                   $           -     $           -     $        0.30
             Total options granted                                     -                 -         2,950,000
             Total fair value of all options granted       $           -     $           -     $     892,487
</TABLE>



                                      F-14

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 7
(Stated in U.S. dollars)
------------------------


Note 6        Common Stock - (cont'd)
              ------------

              Commitment - (cont'd)

              Stock-based Compensation - (cont'd)

              The fair value of each option grant was estimated on the date of
              the grant using the Black-Scholes option-pricing model with the
              following assumptions:

                                             2001         2000          1999
                                             ----         ----          ----
             Expected dividend yield          0.0%         0.0%          0.0%
             Expected volatility              0.0%         0.0%         97.0%
             Risk-free interest rate          0.0%         0.0%          5.0%
             Expected term in years           -            -             5

              The following common share purchase options were outstanding at
              December 31, 2001 entitling the holders thereof the right to
              purchase one common share for each option held:

<TABLE>
<CAPTION>

                                                                      Exercise Price
                                            Number of Options           Per Share               Expiry Date
                                            -----------------         --------------            -----------
<S>                                              <C>                      <C>                  <C>
             Consultants                         1,775,000                $0.40                June 30, 2004
             Officer, directors and
              employees                          1,175,000                $0.40                June 30, 2004
                                                 ---------
                                                 2,950,000
                                                 =========
</TABLE>



Note 7        Related Party Transactions
              --------------------------

              During the year ended December 31, 2000, the Company wrote-off
              uncollectible advances to related companies in the amount of
              $8,202.  This expense has been included with office operating
              costs.

              During the year ended December 31, 2001, the Company was charged
              $113,438 (2000: $10,794 and 1999: $Nil) by directors and companies
              controlled by directors of the Company for consulting fees.

              At December 31, 2001, there is $100,000 due from a company with a
              common director. This loan is unsecured, bears interest at prime
              plus one percent calculated semi-annually and is due on December
              31, 2002.

Note 8        Deferred Tax Assets
              -------------------

              The Financial Accounting Standards board issued Statement Number
              109 in Accounting for Income Taxes ("FAS 109") which is effective
              for fiscal years beginning after December 15, 1992. FAS 109
              requires the use of the asset and liability method of accounting
              of income taxes. Under the assets and liability method of FAS 109,
              deferred tax assets and liabilities are recognized for the future
              tax consequences attributable to temporary differences between the
              financial statements carrying amounts of existing assets and
              liabilities and loss carryforwards and their respective tax bases.
              Deferred tax assets and liabilities are measured using enacted tax
              rates expected to apply to taxable income in the year in which
              those temporary differences are expected to be recovered or
              settled.


                                      F-15

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 8
(Stated in U.S. dollars)
------------------------


Note 8        Deferred Tax Assets - (cont'd)
              -------------------

              The following table summarized the significant components of the
              Company's deferred tax assets:

                                                                    Total
                                                                    -----
             Deferred Tax Assets
             Net operating loss carryforward                   $    4,628,000
                                                               ===============
             Deferred tax assets                               $    2,314,000
             Valuation allowance for deferred tax assets           (2,314,000)
                                                               ---------------
                                                               $            -
                                                               ===============

              The amount taken into income as deferred tax assets must reflect
              that portion of the income tax loss carryforwards which is likely
              to be realized from future operations. The Company has chosen to
              provide an allowance of 100% against all available income tax loss
              carryforwards, regardless of their time of expiry.

Note 9        Income Taxes
              ------------

              No provision for income taxes has been provided in 2001, 2000, and
              1999 due to the net loss. The Company has net operating loss carry
              forwards, which expire commencing in the year 2017 totalling
              approximately $4,628,000, the benefits of which have not been
              recorded.

              Under the provisions of the Tax Reform Act of 1986, when there has
              been a change in an entity's ownership of fifty percent or
              greater, utilization of net operating loss carry forwards may be
              limited. As a result of equity transactions occurring through
              December 31, 1999, the Company will be subject to such limitation.
              The annual limitations have not been determined.

Note 10       Subsequent Event
              ----------------

              By an agreement dated February 4, 2002, the Company agreed to
              dispose of it's wholly-owned subsidiary Drucker Petroleum, Inc.
              for US$250,000 (payable in cash) and 1,000,000 common shares of
              the purchaser, a public company. The cash payment is due on the
              signing of a definitive agreement and the issuance of shares shall
              occur upon the receipt of regulatory approval. The Company has the
              option to require the purchaser to buy-back or repurchase
              US$250,000 worth of the purchaser shares issued to the Company
              within six months from the date of issuance at a guaranteed price
              of CDN$0.50 per share. Drucker Petroleum, Inc. holds a 20%
              participating interest in the West Gharib property located in
              Egypt.


                                      F-16

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 9
(Stated in U.S. dollars)
------------------------


Note 11       Segmented Information
              ---------------------

              The Company's industry's segment is the oil and gas industry. The
              Company's geographic segments are Canada, Egypt and Algeria. There
              were no identifiable assets in Algeria at December 31, 2001.

<TABLE>
<CAPTION>

                                                                         December 31, 2001
                                               Canada          Egypt          Algeria          Total
                                               ------          -----          -------          -----
<S>                                         <C>            <C>            <C>             <C>
             Identifiable Assets
               Current                      $     710,626   $           -  $           -   $     710,626
               Capital assets, net                  1,548               -                          1,548
               Oil and gas projects                     -         513,346              -         513,346

                                            $     712,174   $     513,346  $           -   $   1,225,520


                                                                         December 31, 2000
                                               Canada          Egypt          Algeria          Total
             Identifiable Assets
               Current                      $     812,836   $           -  $           -   $     812,386
               Capital assets, net                  2,775               -              -           2,775
               Oil and gas                              -       1,842,088      1,328,663       3,170,751

                                            $     815,161   $   1,842,088  $   1,328,663   $   3,985,912


                                                                      Year ended December 31,
                                                                2001           2000            1999
                                                                ----           ----            ----
             Operations
               Canada                                      $ (    230,940)$ (    160,639) $ (    620,511)
               China                                                    -              -    (     70,135)
               Egypt                                         (  1,414,643)       498,282    (    419,538)
               Algeria                                       (  1,197,267)             -               -

                                                           $ (  2,842,850)$      337,643  $(   1,110,184)

</TABLE>


Note 12       New Accounting Standards
              ------------------------

              In June 1998, the Financial Accounting Standards board issued SFAS
              No. 133, "Accounting for Derivative Instruments and Hedging
              Activities," which standardized the accounting for derivative
              instruments. SFAS is effective for all fiscal quarters of all
              fiscal years beginning after June 15, 1999. Adopting this standard
              will not have a significant impact on the Company's consolidated
              financial positions, results of operations or cash flows.

                                      F-17

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 10
(Stated in U.S. dollars)
------------------------


Note 13       Prior Period Change
              -------------------

              The Company determined that the net loss for the year ended
              December 31, 1999 was understated by $537,000 for a non-cash
              compensation charge. The share capital and deficit at December 31,
              1999 and the net loss for the year ended December 31, 1999 have
              been restated to reflect this adjustment.

Note 14       Comparative Figures
              -------------------

              Certain of the previous years figures have been reclassified to
              conform with this years presentation.

Note 15       Supplementary Oil and Gas Information (Unaudited)
              -------------------------------------------------

              The following supplemental information regarding oil and gas
              activities of the Company is presented pursuant to the disclosure
              requirements promulgated by the Securities and Exchange Commission
              ("SEC") and the Statement of Financial Accounting Standards No.
              69, "Disclosure about Oil and Gas Producing Activities.

              Capitalized Costs
              -----------------

              Capitalized costs relating to the Company's oil and gas producing
              activities as of December 31, 2001 and 2000 are as follows:

<TABLE>
<CAPTION>

                                                                        2001             2000
                                                                        ----             ----
<S>                                                                 <C>               <C>
                 Proved properties                                  $     352,000     $     352,000
                 Unproved properties                                            -         1,225,000
                 Wells, related equipment and facilities                  448,281         1,628,454
                 Uncompleted wells, equipment and facilities                    -           103,663
                                                                    --------------    --------------
                                                                          800,281         3,309,117
                 Less:  accumulated depletion                        (    286,935)      (   138,366)
                                                                    --------------    --------------
                                                                    $     513,346     $   3,170,751
                                                                    ==============    ==============
</TABLE>

              Incurred Functional Costs
              -------------------------

              Costs incurred in oil and gas property acquisition, exploration
              and development activities, including capital expenditures, are
              summarized as follows for the years ended December 31, 2001 and
              2000:

<TABLE>
<CAPTION>

                                                                   Total
                 Year ended December 31, 2001                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
<S>                                                          <C>               <C>               <C>
                 Property acquisition costs (recovery):
                  Unproved                                   $  (   132,129)   $            -    $  (   132,129)
                 Exploration costs                           $       26,883    $       26,883    $            -
                 Development costs                           $      290,252    $      290,252    $            -
</TABLE>



                                      F-18

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 11
(Stated in U.S. dollars)
------------------------


Note 15       Supplementary Oil and Gas Information (Unaudited) - (cont'd)
              -------------------------------------------------

              Incurred Functional Costs - (cont'd)
              -------------------------

<TABLE>
<CAPTION>

                                                                   Total
                 Year ended December 31, 2000                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
<S>                                                          <C>               <C>               <C>
                 Property acquisition costs:
                  Unproved                                   $      703,663    $            -    $      703,663
                 Exploration costs                           $      413,176    $      413,176    $            -
                 Development costs                           $      999,164    $      999,164    $            -

</TABLE>

              Results of Operations
              ---------------------

              The results of operations for oil and gas producing activities,
              excluding general corporate overhead and financing costs, for the
              year ended December 31, 2001 and 2000 are as follows:

<TABLE>
<CAPTION>

                                                                   Total
                 Year ended December 31, 2001                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
<S>                                                           <C>               <C>               <C>
                 Revenues                                     $   1,899,252     $   1,899,252     $           -
                 Production costs                                (1,675,810)       (1,675,810)                -
                 Exploration expenses                               (26,883)          (26,883)                -
                 Depletion provision                               (148,569)         (148,569)                -
                                                             ---------------    --------------    --------------
                 Results of operations for producing
                  activities (excluding corporate overhead
                  and financing costs)                        $      47,990     $      47,990     $           -
                                                             ===============    ==============    ==============

                                                                   Total
                 Year ended December 31, 2000                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
                 Revenues                                     $   3,167,655     $   3,167,655     $           -
                 Production costs                                (2,117,831)       (2,117,831)                -
                 Exploration expenses                              (413,177)         (413,177)                -
                 Depletion provision                               (138,366)         (138,366)                -
                                                             ---------------    --------------    --------------
                 Results of operations for producing
                  activities (excluding corporate overhead
                  and financing costs)                        $     498,281     $     498,281     $           -
                                                             ===============    ==============    ==============

</TABLE>



              There were no results of operations from oil and gas producing
              activities during the year ended December 31, 1999.


                                      F-19

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 12
(Stated in U.S. dollars)
------------------------

Note 15       Supplementary Oil and Gas Information (Unaudited) - (cont'd)
              -------------------------------------------------

              Reserve Quantities
              ------------------

              The estimates of proved reserves and related valuations were
              determined both by management and by independent petroleum
              engineers. Estimates of proved reserves are inherently imprecise
              and are continually subject to revision based on production
              history, results of additional exploration and development and
              other factors.

              Proved reserves are reserves judged to be economically producible
              in future years from known reservoirs under existing economic and
              operating conditions; i.e., prices and costs as of the date the
              estimate is made and assuming continuation of current regulatory
              practice using conventional production methods and equipment.
              Proved developed reserves are those expected to be recovered
              through existing wells with existing equipment and operating
              methods.

              Presented below is a summary of the changes in estimated proved
              reserves of the Company for the year ended December 31, 2001 and
              2000:

<TABLE>
<CAPTION>

                                                                   Total
                 Year ended December 31, 2001                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
<S>                                                             <C>                <C>               <C>
                 Proved developed and undeveloped
                  reserves, beginning of year:                   10,562,000         1,812,000         8,750,000
                 Revisions of previous estimates                 (1,461,875)       (1,461,875)                -
                 Amounts written-off                             (8,750,000)                -        (8,750,000)
                 Expenditures, discoveries and other
                  additions                                               -                 -                 -
                 Production                                        (110,064)         (110,064)                -
                                                                ------------       -----------       -----------
                                                                    240,061           240,061                 -
                                                                ============       ===========       ===========

                                                                   Total
                 Year ended December 31, 2000                   World-wide           Egypt           Algeria
                 ----------------------------                   ----------           -----           -------
                 Proved developed and undeveloped
                  reserves, beginning of year:                    4,800,000         4,800,000                 -
                 Revisions of previous estimates                 (2,851,894)       (2,851,894)                -
                 Extensions, discoveries and other
                  additions                                       8,750,000                 -         8,750,000
                 Production                                        (136,106)         (136,106)                -
                                                                ------------       -----------       -----------
                 Proved developed and undeveloped
                  reserves, end of year                          10,562,000         1,812,000         8,750,000
                                                                ============       ===========       ===========
</TABLE>


                                      F-20

<PAGE>

Drucker, Inc.
Notes to Consolidated Financial Statements
December 31, 2001 and 2000 - Page 12
(Stated in U.S. dollars)
------------------------

Note 15       Supplementary Oil and Gas Information (Unaudited) - (cont'd)
              -------------------------------------------------

              Discounted Future Net Cash Flows
              --------------------------------

              SFAS No. 69 prescribes guidelines for computing a standardized
              measure of future net cash flows and changes therein relating to
              estimated proved reserves. The Company has followed those
              guidelines which are briefly discussed below.

              Future cash inflows and future production and development costs
              are determined by applying year-end prices and costs to the
              estimated quantities of oil and gas to be produced. Estimated
              future income taxes are computed using year-end statutory income
              tax rates, including consideration for previously legislated
              future statutory depletion rates and investment tax credits. The
              resulting future net cash flows are reduced to present amounts by
              applying a 10% annual discount factor.

              The assumptions used to compute the standardized measure are those
              prescribed by the Financial Accounting Standards Board and, as
              such, do not necessarily reflect the Company's expectations of
              actual revenues to be derived from those reserves or their present
              worth. The limitations inherent in the reserve quantity estimation
              process, as discussed previously, are equally applicable to the
              standardized measure computations since these estimates are the
              basis for the valuation process.

              Presented below are the standardized measure of discounted future
              net cash flows and changes therein relating to proved reserves as
              of and for the year ended December 31, 2001 :

<TABLE>
<CAPTION>

                                                                   Total
             Year ended December 31, 2001                       World-wide           Egypt           Algeria
             ----------------------------                       ----------           -----           -------
<S>                                                           <C>               <C>               <C>
             Future cash inflows, net of royalty              $   1,597,850     $   1,597,850     $           -
             Future production and development costs             (1,125,741)       (1,125,741)                -

             Future net cash flows                                  472,109           472,109                 -
             10% annual discount for estimated timing of
              cash flows                                            (50,115)          (50,115)                -
                                                              --------------    --------------    -------------
             Standardized measure of discounted future
              cash flows relating to proved oil and gas
              reserves                                        $     421,994     $     421,994     $           -
                                                              ==============    ==============    =============

                                                                   Total
              Year ended December 31, 2000                      World-wide           Egypt           Algeria
              ----------------------------                      ----------           -----           -------
              Future cash inflows, net of royalty              $ 17,097,144      $ 17,097,144      $          -
              Future production and development costs           (10,489,738)      (10,489,738)                -
                                                              --------------    --------------    -------------
              Future net cash flows                               6,607,406         6,607,406                 -
              10% annual discount for estimated timing of
               cash flows                                       ( 3,035,649)      ( 3,035,649)                -
                                                              --------------    --------------    -------------
              Standardized   measure  of  discounted  future
             cash  flows  relating  to  proved  oil  and gas
             reserves                                          $  3,571,757      $  3,571,757      $          -
                                                              ==============    ==============    =============

</TABLE>

                                      F-21