PR after bell - EGPI Firecreek Inc. Overseas Oil & Gas Mid-Fourth Quarter Status
Tuesday December 6, 4:02 pm ET
Firecreek Petroleum Unit, with Strategic Partner The Sahara Group, Reports Position, Progress and Developments
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 6, 2005--EGPI Firecreek Inc. (OTCBB: EFCR - News) President John R. Taylor and Dr. Rusbek Bisultanov, chairman of The Sahara Group Inc. (TSG), Firecreek's strategic partner, reports the progress and position at mid-fourth quarter operations for the development of its international oil and gas unit.
ADVERTISEMENT
As previously announced on Nov. 15, 2005, and Nov. 21, 2005, Firecreek recently initiated deployment of its first U.S.-based natural gas acquisition. Firecreek, through its Petroleum Unit, is seeking to enhance its underlying oil and gas reserve infrastructure by targeting additional U.S.-based acquisitions while concurrently developing its numerous overseas opportunities by year end 2005.
In Kazakhstan: Related to activities initially reported in Firecreek's Sept. 30, 2005, press release, amid steady negotiations overseas, Firecreek Petroleum and its strategic partner TSG signed a memorandum of understanding on Nov. 11, 2005, with one of the largest oil producing enterprises in Kazakhstan. The purpose of the M.O.U. and the protocol initiative is to jointly undertake final technical due diligence for review in preparation for the anticipation of operations and the development of a proved undeveloped field (PUD) known as Kamenskoye. This field spans approximately 100,000 acres and is adjacent to the previously announced 1.7 million acre Kamenkovsky field exploration block. Firecreek continues to work on the clarification of certain legal issues affecting the status of the Kamenkovsky field exploration license. Firecreek anticipates resolving the remaining issues in early 2006.
As a result of negotiations and the research conducted, Taylor and Bisultanov, working in conjunction with all subject parties, have developed a beneficial working strategy that first calls for the drafting of separate joint venture agreements that, when completed, will provide for the development of the Kamenskoye field. If successfully completed, the Kamenskoye field acquisition would represent a major benchmark for Firecreek's Petroleum Unit in accomplishing goals planned for the commencement of operations in Kazakhstan.
To date Firecreek has invested in excess of $650,000 (USD) toward its unit goals in Kazakhstan and expects that additional funds will be required this year toward finalizing a feasible joint venture acquisition opportunity beginning with the Kamenskoye proved undeveloped field. If successful, additional funds will be required for ongoing acquisition and development programs.
Management believes that the oil and gas developments in Kazakhstan provide an excellent opportunity for the Firecreek Petroleum Unit to wage its bid to become an active achiever in the international oil and gas arena and that upon the successful completion of these in country programs should lead to exponential growth for EFCR.
In Ukraine: As reported in its Oct. 27, 2005, press release, Firecreek, through its wholly owned subsidiary Firecreek Petroleum, with its strategic partner The Sahara Group, signed a Memorandum of Understanding with the operator of the Burgrevatovskoye field, UKRNAFTA. The Firecreek Petroleum unit is presently scheduling its technical team to meet with UKRNAFTA representatives in Kiev, Ukraine to begin strategic discussions on 2006 budgets, work programs and a formal operating agreement. As previously announced, The Sahara Group is a member of the Energy Independence Committee, which was established this year by the Ukrainian government. Firecreek Petroleum will be reviewing technical data on six additional oil and gas fields offered by the Ukraine government for rehabilitation through the Ukraine Oil company NAFTOGAZ in early 2006. As per NAFTOGAZ guidelines, Firecreek Petroleum will negotiate agreements on all selected fields with the local Ukrainian operators who have been previously operating these fields.
In Libya: As an update to the previously reported Sept. 30, 2005, press release, Firecreek received a formal invitation to meet with the head of the Libyan National Oil Corp., Dr. Abdulla Albadri, in October 2005. At this meeting discussions were focused around Firecreek's previously submitted Memorandum of Understanding and the proposed contract to rehabilitate two older fields. Albadri has scheduled a second meeting this month with a Firecreek delegation to consist of Firecreek President Taylor, Executive V.P. and General Counsel William E. Merritt and V.P. International Division Dr. James C. Howard. It is anticipated that discussions will focus around an in-depth technical review of the two fields. Firecreek Petroleum has been asked to make its development proposal before year end.
Romania: Discussions continue with OMV-PETROM and government officials on the turn over of older fields that can be rehabilitated. These fields may become a part of a larger potential venture involving Firecreek operations in Kazakhstan with OMV-PETROM since OMV-PETROM has a substantial production in Kazakhstan. Firecreek's Romania in-country manager, Serge Caldar, is working with our international consulting firm, RCI Consultants, in these preliminary talks. Formal meetings have been proposed for January 2006.
EGPI Firecreek Inc., through its Firecreek unit, is focused on oil production with an emphasis on acquiring existing oil fields with proven reserves. Additionally, the company specializes in the rehabilitation of potentially high throughput oilfields, resource properties and inventories on an international basis. |
