On July 18, 1997, at 0930 hours Pacific daylight time, a homebuilt experimental Fronsman Rotorway Exec helicopter, N6323F, was destroyed by a ground fire following a loss of oil pressure while hovering at the Lakeport, California, airport. The helicopter was owned and operated by the pilot and was on a local area personal flight. Visual meteorological conditions prevailed at the time and no flight plan was filed. The private pilot, the sole occupant, was not injured. The flight originated about 0915 on the morning of the accident from the Lakeport airport. In a statement to Federal Aviation Administration inspectors, the pilot said he was practicing hover operations when the oil pressure began to decrease below red line. By the time the pilot landed at his parking ramp, the oil pressure was at zero. As he exited the helicopter, the pilot noticed smoke and flames coming from the right side of the engine compartment. He was unsuccessful in extinguishing the fire with a portable extinguisher and the helicopter was destroyed in the subsequent ground fire. The pilot completed a condition inspection on the helicopter immediately prior to the flight.