(Study Evaluates Potential for Multi-Well Enhancement and New Drilling Program)
SCOTTSDALE, Ariz.–(BUSINESS WIRE)–EGPI/Firecreek, Inc. (OTCBB: EFIR) Dennis R. Alexander, CEO, announced today the receipt of an independent reserve report regarding the Company’s previously announced LOI for the acquisition of a West Texas oil and gas rehabilitation and development project located in Haskell, Shackelford and Jones counties, Texas.
Under the LOI, EGPI/Firecreek and Templar PetroConsultants (Templar) are to become joint venture partners with Templar to be the Operator and minority partner.
As previously reported, there are 38 existing wells on the property, 14 of which are currently producing with 24 additional shut-in wells that can be brought back into production through rehabilitation and repair. There are also over 50 proved undeveloped or inside locations to be drilled to proved producing formations with four or more identified formations behind the pipe available for future development.
Operators have identified 12 wells for an initial rehabilitation program.
The independent reserve Report from Lee Engineering of Midland estimates recoverable reserves of 400,000 Barrels of Oil from the main zones (Cook, Bluff Creek, King, and Tannehill), including reserves behind pipe (PDNP), and proven undeveloped offset drill-sites to the present wells (PUD) or in field. The report did not include the possible reserves in deeper formations.
As part of the acquisition and initial rehabilitation program, EGPI Firecreek and Templar anticipate an initial six well drilling program to shallow depths ranging from 1700′ to 2300′. Following the initial rehabilitation program, an additional multi well program to drill 18 to 20 new wells on proved inside locations adjacent to the producing formations is contemplated. Projections estimate 30 Bbl oil for each successfully completed well. Based on a successful rehabilitation and drilling program, the Company estimates production to reach 80-100 barrels per day and to grow to over 500 barrels of oil per day when the fields are fully developed.
EGPI Firecreek, Inc. continues to review potential leases, interests and opportunities located throughout the U.S. and surrounding regions. The Company is currently working on traditional finance opportunities for funding project acquisitions and the capital expenditure requirements for each.
About EGPI Firecreek, Inc.
EGPI/Firecreek Inc. is focused on oil production with an emphasis on acquiring existing oil fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories. Other companies in the oil sector include, Pantina Oil and Gas Inc. (POG), Frontier Oil Inc. (FTO), Exxon (XON) and Cabot Oil & Gas Inc. (COG).
Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of EGPI Firecreek, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond EPGI Firecreek Inc.’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in EGPI Firecreek, Inc.’s filings with the Securities and Exchange Commission.
Contact:
Infinity Consulting Group, Inc.
Mr. Joseph Vazquez, 754-204-4549
or
SmallCapVoice.com, Inc.
Stuart T. Smith, 512-267-2430
Info@smallcapvoice.com
Source: EGPI/Firecreek, Inc.