EGPI Firecreek, Inc. Signs Letter of Intent with Paradigm Oil and Gas, Inc. for Joint Venture

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--

EGPI Firecreek, Inc. EFIR (“the Company”) announced the execution of a Letter of Intent for the purpose of establishing a Joint Venture Partnership (the “JVP”) between EGPI Firecreek, Inc. and Paradigm Oil and Gas, Inc. PDGO (“Paradigm”).

This Joint Venture will initiate and establish the deployment of Paradigm's Transportable Enhanced Oil Recovery (referred as “T-EOR”) Platform technology. The T-EOR Platform, a new and innovative industry oil production system, is a turnkey integrated and portable oil recovery platform that can be deployed quickly and economically to recover oil from previously producing oil wells with known oil reserves which have not been fully developed. By the deployment of this new technology, they can significantly reduce a well's operating and extraction costs. In turn, this will give Paradigm and the new JVP the ability to bring back previously producing wells with the goal of achieving expedited cash flow and revenue streams through production in a significantly shorter period of time.

Initially, the T-EOR Platform will gather oil production from non-producing existing wells on a rotating basis, in order to determine their natural flow rate. Wells that warrant a permanent infrastructure will be equipped accordingly. Depending on each project and the level of effort and investment, the new JVP will retain a percentage of the net revenue from the resulting production.

The JVP also calls for an initial $1.5 million dollar financing arrangement to be provided for target properties. Proposed initial targets include, but are not limited to, a 2,000 acre lease with equipment and proven reserves in East Texas and Louisiana, which are producing oil and gas with approximately 10 to 12 wells at depths of 2,200 to 2,400 feet, and the Brown Snyder Oil and Gas Leases, for rework programs on 4 to 5 wells covering over 640 acres located near Abilene, Jones County, Texas.

Dennis Alexander, EGPI Firecreek's CEO and Chairman, stated, “We are extremely pleased to be entering into this Joint Venture with Paradigm. This relationship will not only enhance our ability to produce oil and gas, but will also diversify our interests and abilities to service other proved reserves and potential lease operators.”

Ron Polli, Paradigm Oil and Gas, CEO, stated, “The creation of this new Joint Venture Partnership between our two companies significantly enhances our abilities to quickly and effectively penetrate our targeted markets. Additionally, the individual strengths of each company will prove to be an extraordinary complement to one another and should establish a defined footprint in our area of expertise.”

Terms of the JVP between the Company and Paradigm will include a mutually agreed restricted stock swap and is subject to final negotiations and proper due diligence.

About EGPI Firecreek, Inc.

EGPI Firecreek, Inc.'s business and acquisition strategy is focused 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., and for oil and gas servicing business through its wholly owned subsidiary Chanwest Resources, LLC. EGPI Firecreek, Inc. is also looking to expand into alternative energy sources through their recently acquired Arctic Solar Engineering.

About Paradigm Oil and Gas Inc.

Paradigm Oil and Gas Inc. identifies and acquires energy properties with previously discovered known oil and gas reserves that have not either been fully produced from, or fully developed and defined. By the deployment of their Transportable Enhanced Oil Recovery (referred as “T-EOR”) Platform technology, they can significantly reduce a well's operating and extraction costs.

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.