Freedom Oil & Gas, Inc.

COMPANY DATA | INTRODUCTION | PROJECTS IN HAND |  COMPANY DEVELOPMENT STRATEGY
MANAGEMENT |  CONSULTANTS | NEWS UPDATE |  CHINESE

COMPANY DATA

INTRODUCTION

Freedom Oil & Gas, Inc. is an independent oil and gas exploration and development company, headquartered in Salt Lake City, Utah, USA. The Company is a wholly-owned subsidiary of The Majestic Companies, Ltd. (OTC:BB symbol: MJXX). The Company's primary focus is on the development of low-risk infield reserves for revenue stability and the discovery of large oil and natural gas prospects in the Rocky Mountain region of the United States.

The Company will implement cutting edge technologies and exploitation methodologies to fully develop the infield potential of its lower risk projects and its over-thrust acquisitions.

The Company has retained high profile industry expertise to identify and acquire low-risk developmental opportunities to generate targeted cash flows averaging internal rates of return of up to 80%.

As a result of a 7-year study with ongoing leasing activities, 6 major prospects have been identified and acquired, each with substantial reserve potential ranging from 60 million to 2 billion barrels of oil and/or gas equivalent.

Together with the management team, their retained consultants have extensive experience in high-grading prospects, acquisitions and field implementation. The Company will work extensively with industry specialists to design and implement exploration, development and production strategies. Their core group has been responsible for the investment and return of several billion dollars in oil and gas revenue.

PROJECTS IN HAND

(1) El Grande Prospect

Freedom Oil & Gas, Inc. announced that it had completed the acquisition of HEGCO's El Grande Prospect in Faulkner County, Arkansas on Friday, September 13, 2002. Freedom stated that this acquisition had also been approved by the Receiver and the Canadian Court handling HEGCO's receivership.

Freedom also confirmed that it is in discussions with third parties to participate in its re-entry of the Edgmon #1 well, and , if the recompleted well proves to be commercially productive, to participate in the construction of a lateral pipeline connection to a nearby, existing interstate gas pipeline. HEGCO's previous engineering report of May 1999 indicated potential production rates from a flow test of the Edgmon #1 well in the range of 1,200 mcf/d to 4,250 mcf/d, subject to clean-up of load water on the reservoir. Freedom's technical team is developing plans to both re-enter the Edgmon #1 well and dispose of the load water using more modern, advanced completion technologies and reservoir engineering tools.

(2) Ewell Prospect

Freedom Oil & Gas, Inc. announced that drilling operations for the initial well on its Ewell Prospect in Okmulgee County, Oklahoma, had reached target depth in the Arbuckle formation. Freedom stated that an initial review of the logs for the Ewell 1B well indicate discovery of a new and separate Wilcox structure with approximately 52 net feet of calculated pay. The logs also correlated with excellent shows in multiple intervals within the Dutcher formation that also calculate productive. Both the Wilcox and Dutcher have been prolific producing formations within the Ewell field.

(3) Braman Project

The Braman acquisition is a field that was discovered in 1925 and produced with turn-of-the-Century technologies/methodologies. The Braman field is estimated to have produced 25 - 30 million barrels of oil, primarily from the main Tonkawa zone at 2,400 feet. Freedom Oil & Gas, Inc. needs to fund $250,000 for the initial development work.

COMPANY DEVELOPMENT STRATEGY

Freedom Oil & Gas, Inc. views its development activities in a three-phase strategy:

Phase I - to locate and acquire projects - that have low risk development opportunities. These projects typically have undeveloped or underdeveloped reserves with good upside potential. The projects currently identified for acquisition are similar to other recently completed acquisitions by management. 

Field Name	Date	Beginning Production	Daily Forecast Flow	Actual Flow	Investment Cost	Terminal Value
Three Sands* Work Program #1	June 98-99	40 BO 125 MCF	80 BO 300 MCF	400 BO 700 MCF	$500,000	Incremental Value of $8.7 Million
Three Sands*Work Program #2	July - Sept 2001	65 BO 125 MCF	120 BO 300 MCF	160 BO 700 MCF	$185,000	Incremental Value of $3.2 Million
Chambers**	1992 - 93	0 BO 0 MCF	150 BO 200 MCF	180 BO 110 MCF	$980,000	$3.3 Million
South Braman Field Properties Program #1***	1992 - 93	0 BO 0 MCF	300 BO 200 MCF	700 BO 1.3 mmcfpd	2.3 Million	$15.5 Million

*Hewitt Energy (Texas) sold the Three Sands properties to HEGCO Canada, Inc. in 1997.
**Recent work has demonstrated that with an additional $1,000,000 the operator expects to increase production to 700 BO.
***Developed by Hewitt Energy (Texas).

Phase II - developing known potential - in producing and non-producing wells on the subject properties, through rework and general field operations. (For example, within low risk operations, e.g., drill or complete to productive PUD location/depth and explore other horizons in same location). This will accomplish several of the Company's goals of increasing revenues and expanding its proved developed producing reserve base.

Phase III - utilization of cash flow to capitalize ongoing development - to capitalize low and moderate risk development opportunities. The intent will be to allocate as much capital as possible on acquired low cost objectives with high return ratios for a floor growth objective. This phase will focus management on increasing the Company's booked reserves, cash flow and reserve values.

MANAGEMENT

J. David Gowdy, President and CEO (Director)
Mr. Gowdy has been involved in various capacities with the Petroleum Industry since 1982, with experience in finance, acquisition, contracts/legal matters, and development of energy projects. He served as the President of Mountain Home Petroleum, Inc., a privately owned oil and gas exploration company, from 1995 to 2002. At Mountain Home he managed geological data acquisition and leasing efforts, and assisted in farm-out negotiations that resulted in the Company obtaining an assignment of significant drilling and AMI rights in the Liberty and Freedom Trend, Juab and Sanpete Counties, Utah. He has previously served as a consultant and legal counsel to Hewitt Energy Group, Inc., a Texas corporation from 1989 to 2001. From 1986 to 1988, he served as Senior Vice President and General Counsel of New Century Petroleum, Inc., an oil and gas syndication, development and production company in California and Texas.

Jay Bowden, CFO (Director)
As the financial officer of privately held Henry Petroleum of Midland, Texas, Mr. Bowden was responsible for the supervision of the accounting department, management of cash, preparation of financial statements, review of tax returns, development of budgets and forecasts, negotiation of mergers and acquisitions, maintenance of corporate debt, and review of corporate contracts and agreements. His duties included establishing corporate accounting policies and procedures, maintaining a strong system of internal controls, coordinating audits, developing strategic plans, analyzing variance reports, managing the corporate information system, and serving on the company's "Executive Operation Committee" and "Pension Management Committee".

Lyle J. Mortensen, CPA - Secretary (Director)
Lyle J. Mortensen, a certified public accountant in California and Texas. Since 1978, Mr. Mortensen has owned and operated Lyle J. Mortensen CPA, a consulting and accounting firm located in Grapevine, Texas. Prior to opening his private practice, Mr. Mortensen worked for Touche Ross & Company in their Los Angeles, Phoenix, and Salt Lake City offices, serving as director of tax operations in the Salt Lake City office from 1975 until 1978. Mr. Mortensen has extensive accounting and consulting experience, including serving as the chief financial officer of an international investment banking firm and several small companies.

Consultants 

NEWS UPDATE

On January 06, 2003, The Majestic Companies, Ltd., a company emerging as a junior oil & gas exploration and development company through its pending acquisition of Freedom Oil & Gas, Inc., announced that it has entered into a common stock purchase agreement with Fusion Capital Fund II, LLC, a Chicago based institutional investor. Under the purchase agreement, Fusion Capital has committed to buy up to $6.0 million of Majestic's common stock, with Majestic having the option to increase this amount up to $12.0 million under certain circumstances. The purchase agreement allows Majestic to use any funds obtained for the payment of existing obligations and debts, general corporate purposes, drilling and development of existing properties, acquisitions of additional producing properties and other current and potential corporate opportunities.

On December 18, 2002, Freedom Oil & Gas, Inc. announced that it has received initial funding for its planned operations to re-enter and re-complete the Edgmon #1 Well on the E1 Grande Prospect in Faulkner County, Arkansas. Freedom acquired the natural gas prospect covering approximately 6,000 acres in the Arkoma Basin in September. The funds received have allowed Freedom to retain a land company, and to acquire additional leases and well equipment.

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