Estimates Include Proposed $2,900,000 Initial Acquisition
EGPI Firecreek, Inc. (OTCBB: EFIR) is pleased to announce today that as part of its restructuring efforts initiated in late December 2008, has a signed a Letter of Intent with Templar PetroConsultants (“Templar”) to acquire, rehabilitate, and develop West Texas Oil and Gas projects, with wells and field operations in Haskell, Shackelford and Jones counties, Texas.
Templar will be the proposed Operators and minority partners. There are presently 38 wells, 14 of which are producing, with 24 shut-in wells that can be brought back into production. There are over 50 proved undeveloped or inside locations to be drilled to the existing proved producing formations with four or more identified formations behind the pipe for future development.
In addition to the initial acquisition costs and proposed operations; operators have identified 12 wells for an initial rehabilitation program. Based on field review and discussions with lease management, the cost of rehabilitating these wells is estimated to be approximately $300,000.
Based upon the success of its repair, service and rehabilitation program, it is anticipated that operators will propose a CAPEX budget for a development drilling program that will drill between 18 to 20 new wells on proved inside locations adjacent to the producing formations. These wells shall be drilled in 5 well increments. Concurrently, it is envisioned that operations will perform various 3D seismic surveys over selected portions of leased acreage to identify potential producing formations such as the Palo Pinto Lime, Conglomerates, Mississippi or Pennsylvania Reefs and the Ellenburger.
Dennis Alexander, EGPI’s Chairman and CEO, stated, “The economic climate presents many vigorous growth opportunities for those who can build upon a new infrastructure. We look forward to paving the way by establishing new growth, assets and revenues for the Company through our ongoing pursuit for new oil producing properties. We also look forward to securing opportunities similar to this current project. We are excited about the potential this acquisition represents and potential for the development of cash flow and revenue streams with a view towards new growth in 2009.” He also stated, “The significant pullback of crude oil prices has created a number of very attractive opportunities.”
EGPI Firecreek, Inc. continues to review for potential leases, interests and opportunities which are located throughout the U.S. and its surrounding regions. The Company is currently working on traditional finance opportunities in the funding of potential project acquisitions and the respective 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).
Forward-Looking Statements
This press release contains certain statements that may include ‘forward-looking statements’ within the meaning of federal securities laws. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Infinity Consulting Group, Inc. for EGPI Firecreek, Inc.
Mr. Joseph Vazquez, 754-204-4549