SCOTTSDALE, Ariz., Jan. 4, 2010 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) is pleased to announce that it has completed its acquisition of a three-well turn-key work program with Whitt Oil and Gas, Inc. ("Whitt"). The project consists of three proved existing wells, additional associated lease acreage and equipment.
As previously reported, this well program consists of three wells located on 240 Acres located in Shackelford, Callahan, and Stephens counties, West Central Texas. The program also includes associated acreage, equipment and the drilling rights for four more wells. Whitt Oil and Gas, Inc. will act as operator for the Company's interests and will commence with the deployment of various work programs to rehabilitate the wells early this week in order to restore online production as soon as possible.
Whitt operations will commence rehabilitation and enhancement programs which generally will include well repairs followed by frac treatment for each of the wells, namely: McWhorter No. 1 Well with perforations in the Bend Conglomerate Formation at 4,060 to 4,068 feet; Young No. 3 Well to produce at 2,530 feet depth in the Palo Pinto Lime; Boyett Well, to produce in the Caddo Lime at approximately 3,400 feet.
The acquisition calls for a 50% working interest and participation in the rehabilitation of three (3) existing wells on a turnkey basis, with first rights for future drilling of up to four (4) Barnett Shale wells on the lease acreage for the Company. The three existing wells are proved, and as previously reported; evaluations show that there are other potential oil producing formations in each of these wells.
Dennis Alexander, Chairman and CEO stated, "We are very pleased with successfully diversifying our business model by strategically acquiring business projects, interests and endeavors that have an excellent potential to bring increased revenue streams and assets to our balance sheet." He also stated, "We look forward to the implementation of an aggressive plan slated towards the rebuilding of our oil and gas operations for our Energy Producers, Inc. wholly owned subsidiary. Additionally, we look forward to the commencement of a new series of targeted acquisitions which we anticipate will coincide with start of the Whitt three well turn-key work program. We feel very fortunate to start off our year with both an acquisition and the launching of our oil and gas division."
About EGPI Firecreek, Inc.
EGPI Firecreek, Inc. before the decision to transition to embark on an acquisition strategy centered on the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets, alongside its wholly owned subsidiary M3, Inc., was historically 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 thru the wholly owned subsidiary Energy Producers, Inc. ("Energy Producers"). EGPI Firecreek, Inc. is also looking to expand into Alternative energy sources as well as industries in the energy field. Other companies in the oil sector include Exxon Mobil, Pantina Oil and Gas Inc., Frontier Oil Inc. and Cabot Oil & Gas Inc.
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Safe Harbor
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 EPGI 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.