SOURCE: Freestone Resources, Inc.

November 02, 2007 16:14 ET

Freestone Resources, Inc. Provides Update to Shareholders

FAIRFIELD, TX--(Marketwire - November 2, 2007) - On February 21, 2006 an announcement was made by Ichargeit, Inc. that it had signed a Memorandum of Understanding to merge with Freestone Resources, Inc. (PINKSHEETS: FSNR) For this to happen, SEC filings from 6/30/2002 thru 12/31/2006 had to be brought current. On August 15, 2006, Ichargeit, Inc. announced it had completed a name change to Freestone Resources, Inc.

A board of directors was appointed to Freestone Resources, Inc. naming Lloyd Lane as President. During this time, to allow transactions of business for creating assets, a DBA (Lloyd Lane DBA Freestone Resources) was created which automatically gave Freestone Resources the credit history it needed to do business with oil and gas service companies. As anyone knows, it is hard to establish credit from scratch. Following this was a Corporate Resolution by the board of Freestone Resources Inc., that after all filings were brought up to date and the Ichargeit Inc./Freestone Resources Inc. merger was complete, any assets of this DBA were to be assigned to Freestone Resources Inc., the public company. Freestone Oil and Gas originally was to be a Company in which all lease and production assets would be held. By advisement of our accountant and due to a lengthy audit, Lloyd Lane DBA Freestone Resources held these assets instead. Placing the assets in Freestone Oil and Gas would have complicated the audit more.

To date, Lloyd Lane DBA Freestone Resources has assigned all assets to Freestone Resources, Inc. the public company. These assets consist of the Carroll Unit #1, a 525 acre lease in Freestone County with one producing well, the Byrd lease, an 80 acre lease in Mitchell County with one producing well and a contract with Near Bore Resources, L.P., to purchase up to 50% of all chemical made by Near Bore resources, L.P., called Petrozene.

As for leases in Freestone County pertaining to the Carroll unit, Freestone Resources filed at the Freestone County Texas Courthouse on May 8, 2007 six leases which were actually signed over the period August 4 throught October 23, 2006. Freestone Resources hired Leo Gilmore Oil Co. out of Wichita Falls to handle all Texas Railroad Commission filings. Leo Gilmore Oil Co. is merely the operator of record and has no ownership of these wells. Freestone Resources owns 100% of the working interest in the Carroll Unit and the Byrd Unit. A division order was sent to mineral owners showing each of their royalty interests depending on the number of mineral acres they owned. They all have a 1/5 royalty each in the Carroll Unit. To date, a total of $227,049.51 has been paid out to the mineral owners. This is for production thru August 2007. Freestone Resources will receive a 100% tax abatement on the dollars with held from the sale of oil and gas from the Carroll Unit. This will be refunded by the State of Texas for producing a well which had a lapse in production for three years or more. This abatement is good for ten years. The Byrd Unit in Mitchell Co. Texas was purchased on June 26, 2007 and filed that day (volume 732 pages 708-710).

At this time revenue from these assets has been used to pay for the marketing of Petrozene, office, fuel, and travel expenses, etc. Freestone Resources at this time has not paid a salary to any Director or Officer. As for the statement made in a Press Release 1/18/2007 pertaining to Freestone Oil and Gas showing profit by first quarter 2007, these numbers will show on Freestone Resources Inc.'s fourth quarter 10-Q, 2007, from the assets mentioned henceforth. In this same Press Release we stated we hoped to be in the black with Petrozene chemical sales by third quarter 2007. Our current Accounts Receivable show that we are.

In reference to the merger candidate we spoke of, negotiations are still in progress along with a private equity fund looking to acquire marginal wells which would increase in production with the use of Petrozene. We believe it is in the best interest of the Share Holders to pursue both avenues as we feel it would create greater assets for the public company.


Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact Information

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    Freestone Resources, Inc.
    Lloyd Lane
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