EGPI Firecreek, Inc. & Mondial Ventures, Inc. Announce Definitive Agreement For Barnett Multi-Drilling Programs
Mondial Ventures Initiates Deposit Towards Strategic Co-Development Of Up To 240 Acres In Shackleford County, Texas
SCOTTSDALE, Ariz., Nov. 5, 2012 /PRNewswire/ - EGPI Firecreek, Inc. (OTCBB: EFIR) announced today it has signed a Definitive Agreement to prepare and conduct drilling programs aimed at the Barnett Formation in West Central Texas with CUBO Energy, PLC nominee/assignee Mondial Ventures, Inc. ("MNVN").
As previously reported, initial plans are to prepare ground work to conduct a 3-D Seismic study for 240 acres covering the Boyette property in Shackelford County, Texas and the surrounding region. The seismic study will focus on specific Barnett Shale formation characteristics that will assist in the drilling of one or two Barnett horizontal wells, or equivalent vertical wells on the Boyette lease. Proposed depth of future drilling is expected to be approximately 5,200′ to 5,500′ feet.
Recently, there have been Barnett wells in the immediate surrounding area that have been productive in the oil segment of the Barnett Shale which have justified the seismic study. Three previously producing wells exist on the properties and interests. Both companies feel that this is the perfect opportunity to co-develop their strategic plan for a co-partnered drilling program.
Based upon the success of the seismic testing, AFE for the Barnet Horizontal Well program would be estimated at approximately $750,000 per horizontal well subject to any recent market inflation adjustment. A two well objective based upon stabilization of the planned wells would be approximately 80 to 100 BOPD.
Dennis Alexander, EGPI's CEO, stated, "The development of a strategic co-development plan for this multi-drilling program will enable us to expand the breadth of our oil and gas divisions. We believe that this partnership will further assist our abilities to limit our financial exposure while having the advantage of utilizing additional oil and gas management, engineering and advisory teams that will have an overall focus on the success of our specific projects." He also stated, "Coming off of our successful drilling operation on our Glorieta Formation, we are extremely optimistic with this new multi-drilling project."
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:
SOURCE EGPI Firecreek, Inc.