TWST: Could you provide us with a brief overview of the company?

Mr. Reaves: FieldPoint Petroleum Corporation is an independent oil and gas company with production in Oklahoma, Texas and Wyoming. Our operating strategy is centered around a program of acquisition and development of low-risk producing oil and gas properties which offer the opportunity for moderate to high returns on investment, even in a low price energy environment.

TWST: What is the drilling program from here?

Mr. Reaves: Historically, FieldPoint has grown its business through the acquisition of existing production, however we plan to increase our drilling activities considering that energy prices are at high levels. Our present drilling program consists of relatively low-risk activities on our existing leases. During the next 30 days, we anticipate the completion of one additional vertical well on our Grady County, Oklahoma property. In Fayette County, Texas we have an excellent horizontal drilling opportunity and in Converse County, Wyoming we are examining the potential of additional wells at depths of 3,500 to 4,000 feet. Recently we have leased additional acreage in Terrell County, Texas for potential drilling; however, since this project would be deemed a 'wildcat,' we would partner to offset the risk.

TWST: Where are you drilling at the moment and what increase do you have?

Mr. Reaves: We've already successfully participated in the drilling and completion of one well this year in Grady County, Oklahoma and are presently drilling one additional well in the same area. The first well was started on the first of this year. We completed that well the last week of January and brought it online the first part of February.

TWST: Is that a good producer?

Mr. Reaves: Yes, it came in doing approximately 70 barrels a day and is currently producing between 50 to 70 barrels a day gross production.

TWST: As you look down the road, where else are you going to be drilling?

Mr. Reaves: Primarily right now our strategy calls for us to focus on Oklahoma, however we hold acreage in Wyoming and Texas that we will probably begin evaluating some time this year. Near term we desire to focus on the geographic areas where we have the experience and leaseholds. As we continue to grow, we will likely bring on a staff engineer and geologist who will help evaluate opportunities in both our current as well as other geographic areas. Although a slight divergence from our conservative strategy, our recently acquired Terrell County leases provide an opportunity to go after shallow oil and gas sands in the 2,700 to 3,000 foot range. Several wells were drilled in this area prior to the general use of fracturing techniques to stimulate wells. We are presently reviewing historical drilling logs to determine the feasibility of an aggressive drilling program.

TWST: Why pick that kind of drilling? What's the appeal?

Mr. Reaves: The appeal of Terrell County is the low cost to drill each well. We are looking at bringing wells online for less than $100,000 per well and if successful, production could be as high as 50 to 100 barrels a day which provides a phenomenal return on investment. Subject to spacing and other circumstances, potentially 200 plus wells could be drilled on these leases. However, keep in mind, these wells are considered 'wildcats' and the odds of success are significantly reduced. This is why we would partner on such projects to offset the financial exposure. We have selected this type of drilling because we believe it presents an interesting mix to our more conservative acquisition strategy. For instance, it provides possible significant upside with relatively modest financial risk.

TWST: Why are these available to you?

Mr. Reaves: We have acquired and developed each of our existing properties based upon persistence. For a small company, we evaluate a large number of potential acquisition and drilling opportunities each year. Of the few that meet our 'low-risk, long-life, multiple payback' criteria, we have to look at a large number of opportunities. These opportunities are derived from existing long-term relationships, referrals, and the oil and gas auctions. Friendships also play a role. A few years ago, I was fortunate enough to meet Frank Bracken, an E&P analyst at Jefferies & Co. He has provided a lot of industry insight, guidance and occasionally a lead or two on an opportunity.

TWST: Is that the expertise that you bring to the party ' those relationships?

Mr. Reaves: That is a big part of it. Our persistence is also a significant key factor in locating good opportunities. Finally, maintaining stringent criteria as they relate to specific opportunities is vitally important. The adage that 'success is often measured by the deals that one does not do' definitely has an impact at our company.

TWST: Who are you competing with for this acreage?

Mr. Reaves: Our competitors range across the entire spectrum of oil and gas, including companies, institutional investors and on occasion, individual investors. In some cases we're competing with entities that have substantially more resources than we do. In other situations we're competing with much smaller entities as well as entities that are equivalent to FieldPoint in size. I think the biggest advantage that anyone has in this industry is getting there first and we've been able to do that. We've been able to do our homework and we've been able to find some very good deals over the last three to five years in particular.

TWST: As you look out, when you talk about acquisitions, are these going to be property or could they be companies?

Mr. Reaves: We focus primarily on oil and gas properties and leaseholds. We have looked at a few companies that would have made strategic sense however, we have not consummated such an acquisition as of yet and near term, I don't anticipate any such activity.

TWST: Why take that route instead of acquiring companies if they're available?

Mr. Reaves: Although I don't anticipate a near-term acquisition of another oil and gas company, I'm not going to say that we wouldn't acquire a company if the right opportunity came along. We consider FieldPoint to be an opportunity'driven company. If an appropriate opportunity presented itself, we would definitely evaluate it and if it made sense, we would attempt to consummate the transaction. Generally, the acquisition of properties and leaseholds are simpler relative to acquiring companies. When acquiring another company, not only must one consider the individual properties and leaseholds but one must also review issues surrounding the corporation itself and its business methods and strategies. Presuming that the corporate acquisition was consummated, one must then integrate the acquired corporation into the current business model, which is often a complex task.

TWST: Is that where you're focusing your attention?

Mr. Reaves: As it relates to our acquisition strategy, we are focused on properties and leaseholds because the transactions are less complex. However we would not rule out acquiring a company if we could do it at the right price.

TWST: Are the kinds of acquisitions you want available?

Mr. Reaves: Yes, but it is a difficult environment for a financial buyer. When energy prices are high, properties, leaseholds and companies are generally valued at a premium. Therefore, it is difficult to find opportunities at reasonable prices. However, it is not impossible. For instance, in December we added approximately 90 barrels a day for $1 million, with similar properties being offered at $1.5 million. Persistence played a significant role in this acquisition. We had to look at a lot of properties to find this opportunity. As it relates to what we are looking for in our acquisitions, I think I should explain our strategy. One of our criteria is to buy long-life oil and gas reserves. Our ability to go in as a low-cost operator affords us some protection in a lower price energy environment. At the same time, we prefer to acquire properties that have existing production as well as additional acreage for further development. For instance, we often acquire properties that are currently producing oil and gas and this provides immediate cash flow. We then attempt to exploit the offset acreage through drilling activity. Additionally, we may seek to potentially bring more wells online or enhance the production of the existing wells through redevelopment and reworking of existing wells that are already producing. This strategy, over the last four or five years, has provided FieldPoint some phenomenal returns on investment. For example, in 1996, we purchased our Converse County, Wyoming property. Since the date of acquisition, we have experienced zero declines in production. As a result, Converse County has not only paid for itself in excess of 4 times but there is clearly more oil and gas to recover.

TWST: How much more drilling can you do there?

Mr. Reaves: I anticipate that we would likely drill five to eight wells, maybe more. We've got the existing production in line and at some point we will evaluate and decide how we're going to go about further developing these reserves.

TWST: Why wait?

Mr. Reaves: Ideally, I would prefer to begin development on Converse County soon, however we are now evaluating the upside potential. With this in place, I would be comfortable initiating a five'to eight well development effort on this property. Furthermore, our principal current area of drilling activity is Grady County, Oklahoma. As I previously mentioned, we have completed one successful well and are participating in a second well at this time. Upon completion of the second well, and contingent upon its production rates, we will, at that time, determine our next course of drilling activity.

TWST: When will that well be completed?

Mr. Reaves: Within the next 30 days.

TWST: Do investors have some benchmark to look out at as that comes along?

Mr. Reaves: Yes. The first Grady County well that we participated in came in producing approximately 70 barrels a day. I would feel comfortable utilizing these results as a benchmark for well number two. Also, as it relates to benchmarks for investors to utilize in an effort to measure FieldPoint's success, I believe we are a little unique. Corporately, we measure our daily success based upon our daily production numbers. As a small company, it is imperative, on a daily basis, that we sell as much product as possible in an effort to expand our revenues and earnings. We are dedicated to rapidly increasing our reserves and daily production at a rate sufficient to offset declines in energy prices thereby maintaining strong annualized financial performance. During 1999 we averaged 143 barrels of equivalents a day, during 2000 we averaged about 170. For the first three months of 2001, our average now exceeds 300 barrels of equivalents a day and we are determined to achieve 600 barrels as an exit rate number for 2001.

TWST: What should investors expect from you in terms of growth over the next two or three years?

Mr. Reaves: We completed 1999 with revenues of $917,000 and earnings of $65,000 or $0.01 per share. For 2000, our revenues reached $1.6 million and our earnings grew to $400,000 or $0.06 per share. Our current daily production for 2001 is approximately 80% greater than it was for 2000, so I anticipate the current year to represent a significant financial improvement over 2000, which was our strongest year in the company's history. I reasonably expect over the next two or three years investors can anticipate FieldPoint having asset values between $40 and $50 million.

TWST: Where are they today?

Mr. Reaves: Our independent petroleum consultants have estimated the present worth of our reserves, discounted at 10%, at approximately $17 million as compared to approximately $9.7 million in 1999.

TWST: Where do oil and gas prices have to be for that to occur?

Mr. Reaves: We have utilized $26 a barrel of oil and $3.50 per thousand cubic feet of gas in our calculation of $17 million. I will go out on a limb with this projection, but I don't expect oil and gas prices to decline precipitously during the next two to three years. However, even at $20 on a barrel of equivalent basis we should still be able to achieve $40 to $50 million in asset values within two or three years. Declining energy prices actually present an interesting opportunity for FieldPoint. Whereas lower energy prices contribute to declining financial performance, we strive to increase production at a rate sufficient to offset declines in energy prices. The lower oil and gas prices go, it works to our advantage because we're a small company, efficiently managed, and our cash position is very strong. Our debt levels are reasonable and we're constantly reducing debt. Lower oil and gas prices work to our favor in terms of being able to go out and take advantage of purchases of distressed opportunities, which, over time, adds to our critical mass.

TWST: What do you think the pricing environment is going to be over the next year or two?

Mr. Reaves: I believe over the next two years oil prices will probably fluctuate between $20 and $26 a barrel and gas may range from $3.00 to $6.00 per mcf. This bodes well for the oil and gas industry as a whole.

TWST: Is it true that you don't have to have that price to have it make sense?

Mr. Reaves: That is correct. Our current breakeven point is approximately $14 per barrel of equivalent. Even at the low end of my projection of pricing over the next two years of $20 a barrel, we are comfortable. As it relates to our acquisition strategy and pricing, the highest we would pay for existing production today is about $22-$24 a barrel and $3.50 per mcf.

TWST: How much cash do you have?

Mr. Reaves: We're sitting on approximately $600,000 in cash and our assets are approximately $4.5 million. That compares favorably to 1999 when we had about $100,000 in cash and assets of approximately $2.5. Presently, our shareholders, equity is $2.7 million verses $1.4 million in 1999. One of our goals this year, from a balance sheet prospective, is to meet the criteria for a NASDAQ Small Cap listing and I think we will achieve that.

TWST: Do you think the market is fairly valuing the company today?

Mr. Reaves: I believe if you used a simple reserve valuation minus our debt, I would say FieldPoint is undervalued by about 25%. This formula presumes oil prices of $26 a barrel and $3.50 per mcf with 7 million shares outstanding. Under this equation we should be trading around $2.40 a share and are presently trading below $2.00. Based upon a pro forma price-to-earnings ratio, I anticipate FieldPoint will earn 12 cents a share for 2001. This would give us a p/e ratio of 20 times earnings if the stock were trading at $2.40. I believe my estimates are fairly conservative since they are based upon our current daily production rates of 300 barrels. As I have mentioned earlier, we are targeting exit rate 2001 production of 600 barrels, which is double our current production rate.

TWST: Does under valuation reflect a lack of knowledge of what you do?

Mr. Reaves: I believe the fact that our stock is undervalued is representative of a number of factors. Foremost, the correction in US equity markets has had a negative impact upon investor sentiment for micro-cap stocks in particular. Unfortunately, many investors have experienced a significant decline in the values of their portfolios and as such, are not as inclined as they previously were to invest in smaller companies. The lack of knowledge of FieldPoint's business model is also an obstacle. It is important for investors to understand that FieldPoint, although involved in the natural resource sector, is a company that is very conservatively managed. We are dedicated to increasing shareholder value at a rapid rate without exposing the business to major financial risks. Finally, we lack a broad investor audience. We're a small company and have not, as of yet, established any real public relations efforts, although it's something that we're presently in the process of implementing.

TWST: Why haven't you done that today?

Mr. Reaves: As a small company, our focus has been directed toward achieving an initial level of critical mass and establishing a viable business model. We now believe that we have established enough critical mass to begin to build an audience that will not only appreciate what we have achieved in the previous two years, but place confidence in what we believe we can accomplish during the next two years.

TWST: If you were sitting down with investors as you have and will again, what two or three summary reasons would you give them to invest in the company?

Mr. Reaves: I would first ask prospective shareholders to look at our track record. Go back to 1997 and look at what FieldPoint has accomplished since then in terms of asset growth, profitability and our production rates. Although we have implemented a very conservative growth strategy, we were able to create significant increases in assets, revenues and earnings. Secondly, we have demonstrated proficiency in acquiring properties on reasonable terms even in a higher priced energy environment. In December of last year, we consummated our Grady County acquisition for $1 million and this property now produces over 100 barrels a day net to FieldPoint. Also during the 4th quarter of 2000 we consummated our Hutt (Wilcox) acquisition and through our redevelopment program, our production, net to FieldPoint, is approaching 40 barrels a day. Both of these acquisitions occurred with oil and gas prices at lofty levels and our investment should be fully recouped in approximately two years. We are aggressively pursuing, at this moment, other acquisitions of this type, which we expect will have a further positive impact on our assets, revenues and earnings. The third reason I would ask investors to consider FieldPoint as a core holding in their portfolios is that as a smaller company it is very likely, based upon our track record, that we will be able to consistently double and triple the size of our business within very short time horizons. I firmly believe FieldPoint is in a position right now where it will be able to rapidly accelerate its production growth.

TWST: Is it kind of the right place/right time?

Mr. Reaves: Right place/right time and we are undiscovered within the financial community. We are in this for the long haul and we are thinking long term. When you are a long-term thinker, you know that the markets will eventually reward you for your hard work and that's our attitude. We've got one of the finest boards in the country for a small company of our size. They play a role in setting strategy. They're very informed about what the company is doing and everyone is very pleased with our accomplishments today but no one's satisfied. We could and we will do much more.

TWST: Thank you. (TM)

RAY D. REAVES Chairman, President & CEO FieldPoint Petroleum 1703 Edelweiss Drive Cedar Park, TX 78613 (512) 250-8692 (512) 335-1294 - FAX www.fppcorp.com e-mail: tppc@ix.netcom.com

Each Executive who is the featured subject of a TWST Interview is offered the opportunity to include an Investors Brief or other highlight material to be provided and sponsored by and for the company.

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