EGPI Firecreek, Inc. Reports 2nd Quarter Update
SCOTTSDALE, Ariz., May 21, 2012 /PRNewswire/ — EGPI Firecreek, Inc. (OTCBB: EFIR) announced that their 2nd Quarter sees the completion and sale of 50% of North 40 interests in their J.B. TUBB Lease, Inc., the development on South 40, the proposed development on the 240 Acre Boyette Lease and the majority interest sale of Arctic Solar Engineering.
A more detailed chronology of events anticipated for completion in the 2nd quarter are as follows:
Status of Sale of 50% of North 40 Oil and Gas Interests in J.B. Tubb Leasehold Estate and Future Proposed Developments
As previously reported, EGPI Firecreek, Inc. signed an Agreement on March 01, 2012 to sell off a portion of its oil and gas interests to Cubo Energy, PLC for 1.15 million dollars in a share issuance. Due current regulation changes in the Frankfurt Stock Exchange the parties are restructuring the Agreement with an assignment of the interests to be announced in due course with the filing of the Definitive Long Form Agreement. Both parties anticipate the effective date of the Definitive Long Form Agreement to occur within the next 10-14 days.
Under the terms of the Agreement, CUBO or an Assignee will finance the production of an initial Ellenburger well to a depth of 8,300 ft. on an earn-in basis. Other additional new well developments and participation are proposed and planned on earn-in or financed basis. For the initial start on the proposed development Capital Expenditures (CAPEX) for the Ellenburger drilling project is $1,575,000.
Status of Letter of Intent with CUBO to prepare and conduct drilling programs aimed at the Barnett Formation in West Central Texas.
As previously reported EGPI Firecreek, Inc. signed a Letter of Intent with CUBO to prepare and conduct drilling programs aimed at the Barnett Formation in West Central Texas. The final Definitive Agreements with an Assignee of CUBO are expected to be completed over the next 10-14 days. Initial plans are to prepare and conduct a 3-D Seismic study for 240 acres covering the Boyette property in Shackelford County, Texas. The seismic study will focus on specific Barnett Shale formation characteristics that will assist in the drilling of one and possibly two Barnett horizontal wells or an equivalent eight vertical wells on the Boyette lease.
Sale of 51% Interests in Arctic Solar Engineering, Inc. to W2 Energy, Inc.
As previously reported, EGPI Firecreek announced the signing of a Letter of Intent in order to sell off 51% majority interest in their subsidiary Artic Solar Engineering, Inc. EGPI expects to finalize the binding Definitive Agreement with W2 Energy, Inc. (OTCPK: WTWO) within the next 7-10 days.
Dennis Alexander, EGPI’s CEO, stated, “Due to varied regulatory changes over the last six months with the Frankfurt Exchange, we have had to modify our initial agreement with CUBO which caused several unforeseen delays. However, we now have formulated the changes necessary, have a clear direction, and are very excited about initiating our relationship. Additionally, we believe are also ready to move forward with CUBO assignees on our drilling programs aimed at the Ellenburger formation in the TUBB Lease and the seismic study, as prep for plans for the drilling of the Barnett Formation.” He also stated, “We also plan to complete the sale for 51% majority interest in our Arctic Solar subsidiary to W2 Energy, Inc. within the next several days now that both parties have completed their required audited year-end and unaudited first quarter financial statements. We look forward to establishing long term relationships with both parties and are very excited with the opportunities that both companies bring to the table.”
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.
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:
Public Relations and Shareholder Information
SOURCE EGPI Firecreek, Inc.