SCOTTSDALE, Ariz., Jan. 26, 2010 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) is reporting more detailed information on the technology of its recently announced Letter of Intent to acquire a patented oil compressor technology company (referred as "The Company").
The Company is focused on enhancing the production of oil wells, lowering operating costs and providing excellent service. Their products and services allow the client to maximize their resources. Their full line of patented equipment requires no field maintenance by personnel.
Additionally, The Company continues to add new patented technologies to their services. Their latest additional service enables marginal and new well oil and gas operators to increase production and extend the economic life of the well while reducing lifting costs as part of the company's enhanced production and optimization services.
By utilizing the patented oil flow compressor in combination with world-class Variable Frequency Drives and an advanced integrated Pump-Off Controller. The automated pumping system is controlled using proprietary intelligent rod pump optimization software.
The Company addresses industry challenges related to reducing maintenance costs, improving compressor reliability and lowering environmental impact. Their full line of products and services allows every operator the opportunity to increase production and lower operating costs through affordable wellhead compression and pump control automation.
Need for the product while servicing a niche market in the oil and gas industry:
More than 75 percent of all oil wells in the United States are classified as "stripper wells," producing less than 15 barrels per day. Despite their small volumes, they add up. Over 400,000 stripper oil wells in the United States produce, in aggregate, nearly 1 million barrels of oil per day. These wells also operate on razor-thin economics, and thus are extremely sensitive to oil price changes or swings in operating costs. From 1993 to 2000, about 150,000 of these marginal oil wells were abandoned, costing the nation more than $3.5 billion in lost economic output and leaving about 150 million barrels of crude in the ground.
The Companys' oil flow compressor enables a pump jack to flow more oil to the surface with each stroke. The increased production from the beam mounted compressor is based upon a basic engineering theory. If the pressure on the formation of a producing well is reduced, additional oil will flow into the wellbore and the wells productivity will increase.
The patented oil flow compressor derives its power from existing pump jack equipment. With today's oil and gas prices, the economic benefits of using the patented oil flow compressor are not only substantial, they are essential.
Product Benefits
The patented oil flow compressor offers a solution to many performance limiting conditions on marginal and new wells. Some of the benefits are:
- Improved production and daily revenues
- Increased recoverable reserves and extended well life
- Low cost
- Does not burn sellable gas
- Lowest maintenance wellhead compressor on the market
- Pump jack stays balanced
- Non-lubricated design
- Operates in corrosive environments
- Simple installation
- Easily transferred from well-to-well
- Most environmentally friendly wellhead compressor in the industry
Green Compression
The patented oil flow compressor is the most technologically advanced, environmentally friendly well head compressor on the market today.
- Green advantages of the oil flow compressor eliminate gas venting at the well
- Eliminates the need for additional internal combustion engine fuel
- No green house emissions
- Does not increase the footprint size of the well site
- Lower maintenance and service truck access frequency
- Lower noise level than any internal combustion well head compressor
Dennis Alexander, Chairman and CEO, commented, "The highly advanced products and services provided by our latest acquisition candidate not only meets with the high demand of flow production in the oil and gas industry, but also addresses several green advantages which is a contribution to our future." He also stated, "Upon completion of this proposed acquisition, we envision EGPI will be building a well diversified oil and gas division capable of addressing the economic needs of a niche part of the oil and gas industry which will also help to sustain and consistently add revenues to our growth."
About EGPI Firecreek, Inc.
EGPI Firecreek, Inc.'s business and acquisition strategy is focused on both the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets alongside its wholly owned subsidiary M3 Lighting, Inc. (M3), and South Atlantic Traffic Corporation (SATCO), and on oil and gas production with an emphasis on acquiring existing fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories, through its 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.
The EGPI Firecreek, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6259
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 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.