SCOTTSDALE, Ariz., Jan. 3, 2013 /PRNewswire/ -- EGPI Firecreek, Inc. (OTCBB: EFIR) announced summary highlights for year 2012 and marks development plans for year 2013.
Wrap up for the year 2012:
- EGPI continued its consolidation and wrap up activities for the exit and recovery from its business segments related to signalization, lighting, and telecom via its 2011 sell off of South Atlantic Traffic Corporation (SATCO) and Terra Telecom.
- EGPI continued the integration and ramp up of its acquired interests in oil and gas operations, including various work programs and the development of its J.B. Tubb Leasehold Estate/Amoco Crawar field oil and gas interests, acquired in early 2011 and located in the Permian Basin and the Crawar Field, which is directly adjacent to property operated by Chevron Corporation in Ward County, Texas (12 miles southeast of Monahans and 30 miles west of Odessa in West Texas).
- In late July 2012 EGPI sold a portion of its working and net revenue interests in J.B. Tubb Leasehold Estate to U.S. based Mondial Ventures, Inc. completing the transaction for $1,150,000 in stock and the assumption of debt.
- EGPI acquired additional rights to develop and drill a series of wells on the J.B. Tubb Leasehold Estate/Amoco Crawar Field, South 40 considering various targets in formations including Ellenburger, Glorieta, Upper Clearfork, Tubbs, Lower Clearfork, Witchita Albany, Wolfcamp, Detrital Zone and Waddell formations. AFE CAPEX requirements needed are estimated at $19 million for a fully staged-in property development.
- On August 28, 2012, the Company reported that funding had been secured in order to provide for a work program perforating into the new untapped Glorieta Formation in the Crawar #2 well. EGPI was successful in striking oil and gas in the Glorieta Formation.
- The Company reported that in the month of September 2012 they produced 1700 barrels of oil and 8 MCF of natural gas enabling them to return the initial investment dollars for drilling and operations in the first half of September.
- On November 05, 2012 the Company announced the signing of a Definitive Agreement to acquire, prepare and conduct drilling programs aimed at the Barnett Formation (Permian Basin oil leg) located in West Central Texas with Mondial Ventures, Inc. The preparation is to include a 3D seismic study that will focus on specific Barnett Shale formation characteristics which will help to assist in the planning of future drilling for one or two Barnett horizontal or equivalent vertical wells on the Boyette lease.
Plans for 2013:
- EGPI in conjunction with Mondial Ventures, Inc. anticipates raising approximately $1.6 million in Capital Expenditures ("CAPEX"), for the drilling of an Ellenburger Well to a depth of 8,300 ft. on a turnkey basis. The well is located on the South 40 acreage of the J.B. Tubb Leasehold Estate. Public Records reveal an average production rate of 240 barrels of oil per day for Ellenburger wells on properties adjacent to the South 40 acreage that are currently owned by Chevron, BP and McCulloch Oil Corp.
- EGPI is currently working with third party financing groups to underwrite in excess of 20 million dollars of its CAPEX requirements.
- EGPI is currently developing a restructuring program for future market presence.
- EGPI is in final review and negotiations for several thousand acres of potential oil and gas development leases in its core area of West Central Texas.
Dennis Alexander, EGPI's CEO, stated, "We believe the various business synergies created during year 2012 along with the vital clean up and restructuring of past operations, along with a renewed oil and gas focus, will fuel a baseline for our potential growth in the development of oil & gas wells, revenues, and related opportunities." He also stated, "We look forward to renewing our market presence in 2013 while increasing much needed shareholder value to our Company."
About EGPI Firecreek, Inc.
EGPI Firecreek, Inc.'s business and acquisition strategy is focused on producing oil and gas. The Company puts emphasis on acquiring existing fields with proven reserves or by the rehabilitation of oilfields with potentially high throughput. Through its wholly owned subsidiary Energy Producers, Inc., it acquires resource properties and inventories. Through its wholly owned subsidiary Chanwest Resources, LLC it operates as an oil and gas service business. EGPI Firecreek, Inc. is also planning to expand into producing energy through alternative energy sources through their recently acquired Arctic Solar Engineering subsidiary.
About Mondial Ventures, Inc.
Mondial Ventures, Inc. is engaged in the acquisition of Oil & Gas properties and assets that can be developed into revenue producing assets. The Company has put an emphasis on acquiring existing Oil fields with proven reserves or by the rehabilitation of oilfields with potentially high throughput.
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 EGPI 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.
CAUTIONARY NOTE TO UNITED STATES INVESTORS
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms, such as prospective resource or Original Oil in Place (OOIP) or Petroleum Initially In Place (PIIP), that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10K. Additional information may be found at the following web site: http://www.sec.gov/divisions/corpfin/guidance/cfoilgasinterps.htm
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