EGPI/Firecreek, Inc. Evaluation Team Completes Phase 1 of Fant Ranch Oil Field Improvement Program
Initial Improvement to Add Two Additional Wells to Its Existing 17 Producing Oil Wells Bringing the Active Well Count to 19
SCOTTSDALE, Ariz., Oct 09, 2007 (BUSINESS WIRE) -- EGPI Firecreek, Inc. (OTCBB:EFCR) and its wholly owned subsidiary, Firecreek Petroleum, Inc. announced today that its field engineering team has concluded its initial on-site review of the Fant Ranch Oil Field, and is now in the completion of its Phase 1 Fant Ranch rehabilitation/improvement program. One new workover oil well is set and online and a second oil well is expected to be active and online over the next several days.
As previously reported, the Company's plans include implementing the first of several work programs with the goal of improving existing oil production output from the recently acquired 2,520-acre Fant Ranch oil field located in Knox County near Benjamin, Texas.
The Company's evaluation team recently recommended formation pressure testing of two additional wells in preparation of bringing the two wells back onto production, plus oil and water analysis for future Enhanced Oil Recovery operations of the field. Since the pump jack equipment is already in place on the property, the workover and restoration for these two additional oil wells was determined to be the most cost efficient start to the Fant Unit enhancement program.
A lease crew with crane and rig equipment on-site began work last week on Fant Ranch Unit wells no. 7-1 and 1-4. The 7-1 well work has been completed with the well starting online this past weekend. The 1-4 well pump jack and rods have been set and is expected to be brought back online this week, with the two well additions bringing the overall active well count in Fant Ranch Unit oil field to 19.
Future planned Phase 2 work programs now include routine service and stimulation work to the remaining 17 producing wells. This essential servicing will include acid stimulation, paraffin removal and cleaning out casing perforations to increase well efficiency and to increase production. The program will also include various surface equipment maintenance and repairs.
The Company will work with its Fant Ranch operator, Success Oil, on the continued rejuvenation of the existing wells in a phased-in work program. The daily oil production will increase with the service and stimulation work done on each well in the program.
Dennis Alexander, the Company's Chairman and CFO, stated, "We look forward to the results of our initial phase 1 program. The Company expects to have additional production resulting from this work in a week or two. We believe the program will start showing additional increases in daily oil production to the Fant Ranch Project. We expect similar results once we initiate our Phase 2 Program. Ideally our goal is to continue to rehabilitate, enhance and improve the field output and performance, while continuing to evaluate the potential in restoring a water flood system and/or other Enhanced Oil Recovery Programs on the property."
The Company continues review for potential leases, interests and opportunities which are located throughout the U.S. and its surrounding regions. The Company is working on specific financial opportunities for the funding of potential project acquisitions and the respective capital expenditure requirements for each.
About EGPI Firecreek, Inc.
EGPI/Firecreek Inc. through its Firecreek unit 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 on an international basis. Other companies in the oil sector include, Pantina Oil and Gas Inc. (POG), Frontier Oil Inc. (FTO) and Cabot Oil & Gas Inc. (COG). |
