SCOTTSDALE, AZ, Jan. 6, 2010 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) announced today the execution of a Definitive Agreement to acquire the Sierra Pipeline Gathering System and the Sierra Pipeline Company.
The Sierra Pipeline Gathering System was previously owned by the Koch Corporation. The Koch Corporation is considered to be the nation's largest privately owned company with sales in excess of 100 billion dollars for 2008. Currently, the Sierra Pipeline Gathering System has approximately 2076 miles of pipeline and pipeline gathering systems located primarily in the state of Oklahoma and adjoining states of Kansas and Indiana. The pipeline which was originally created to transport oil currently has over 28,000 wells within close proximity for utilization, production and transportation. The pipelines also have the capability to develop, gather and transport natural gas, as well as, additional opportunities. EGPI Firecreek plans to aggressively analyze, explore and exploit all potential revenue streams for the pipeline.
Conservative valuations estimate current assets to be in the 16 million dollar range. Additionally, a current 2009 appraisal estimates its overall potential value to be in excess of 150 million dollars once the property is utilized to its production capabilities.
Dennis Alexander, Chairman and CEO of EGPI Firecreek, stated, "This Definitive Agreement with the Sierra Pipeline Company is a major breakthrough in our efforts to initiate the revamping of our Oil and Gas division. We believe this milestone will set a significant precedent in once again establishing our Company as a productive and producing oil & gas company." He also stated, "Several mitigating factors have recently developed and we feel fortunate to have the backing of significant players who will have a vested interest in the success of this project. Additionally, we feel confident that this acquisition will round out our initial business model and give us the diversification that we initiated with the start of our M3 and SATCO D.O.T. construction units."
About EGPI Firecreek, Inc.
Before the decision to transition and embark on an acquisition strategy centered on the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets, through its wholly owned subsidiary M3, Inc., EGPI Firecreek 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 through 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.
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.