EGPI/Firecreek, Inc. Signs MOU with Success Oil Co. for Majority Interests in West Texas Oil Program
BUSINESS WIRE
Posted: 2007-10-24 07:16:41
SCOTTSDALE, Ariz.--(BUSINESS WIRE)----EGPI/Firecreek, Inc. (OTCBB: EFCR) and its wholly owned subsidiary, Firecreek Petroleum, Inc. announced today that it has signed an MOU to acquire 75% working interest in Success Oil Co's J.B. Tubb/Amoco Crawar Property, North 40 Acres. This includes an initial two well reentry program for oil and gas.
The J.B. Tubb/Amoco Crawar oil and gas property is located in the Permian Basin, Crawar Field in Ward County, West Texas (12 miles west of Monahans & 30 miles west of Odessa).
The proposed acquisition and corresponding work program includes reentry into two wells in the Upper Clearfork formation (from 4200-4400 feet), and Lower Clearfork formation (from 4550-4750 feet) for the production of oil and gas.
This property is located in and is a part of the Crawar Field, already considered one of the most prolific fields in the United States. Several major oil companies already have projects in this large field. Total present Crawar field statistics show overall production of 500,000 barrels of oil and 4.6 BCF of gas per month respectively.
EGPI/Firecreek, Inc. and Success Oil Co., Inc. are moving ahead with the provisions set forth in the MOU and expect to close within 30 to 60 days.
Dennis Alexander, the Company's Chairman and CFO, stated, "We are excited about the potential asset acquisition for the J.B. Tubb interests and corresponding work programs in the Crawar Field with Success Oil Co. as both operator and part owner. We believe the proposed acquisition presents a strong opportunity to address our continued efforts to build on asset accumulation, oil and gas revenues and cash flow."
Additionally, Success Oil Company is presently reviewing a West Texas based oil and gas property which currently produces $106,000 net cash flow per month and has an additional 46 drilling locations for new wells to potentially be acquired by EGPI Firecreek, Inc.
EGPI Firecreek, Inc. continues review for potential leases, interests and opportunities which are located throughout the U.S. and its surrounding regions. The Company is working on various 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). |
