NEWS
EGPI/Firecreek, Inc. Reports Progress On Its Third TMD 13-9 Well
EGPI/Firecreek, Inc. (OTCBB: EFCR) today announced an operational update regarding the progress for its third (13-9) well workover program in the Ten Mile Draw (TMD) prospect area, Green River Basin, Wyoming.
According to its operating partner, Newport Oil Corporation ("Newport"), engineering evaluations have been encouraging for the Company's third well (13-9). Fracing procedures for the Almond and Lewis Sand formation zones have been successfully completed. This third well is expected to begin production late in the fourth quarter of 2006. Current engineering assessments have been established and the company expects to produce 300 to 500 MCF of gas per day from this well based on its assessment and available well data. Operations for the 13-9 well will begin pending the availability of a completion rig. The Company bears 50% of the cost of the (13-9) workover well and earns a 50% working interest in the acreage relative to the well. Similar agreements have been made on the company's two other operating wells.
The first two completed workover wells in the prospect area (16-1) and (7-16) are currently online and in production. Combined rates for the two wells are approximately 300 MCF of gas per day. Additionally, Newport engineers are diligently working on improved methods to increase production flow from the (7-16) well Almond formation.
To date, for the three wells which include the (16-1), (7-16), and (13-9), the Company has incurred a total expenditure of approximately $1.8 million in acquisition, workover, and completion costs, net to its interest. The Company continues to evaluate additional financial prospects contemplated for the drilling of up to eleven new wells in the TMD prospect area.
Regarding the proposed projects located in the Ukraine and in South Florida, as previously reported, the Company has been working feverishly over the past 60 days towards specific requirements which were established by the signing of a Letter Of Intent (LOI) in September with key industry partners. Subject to final due diligence and terms agreeable to EGPI/Firecreek's Board of Director's, the facilitation of financing requirements for both projects shall be completed.
Rupert Johnson, Director of the Company along with Dr. Rusbek Bisultanov, special consultant for the Ukraine projects, and John Bruynell and other expert consultants representing the Florida projects, have already led and assisted due diligence team studies and requirements on behalf of EGPI Firecreek.
EGPI/Firecreek Inc. through its Firecreek unit is 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. Other companies in the oil sector include, Pantina Oil and Gas Inc. (POG), Frontier Oil Inc. (FTO) and Cabot Oil & Gas Inc. (COG).
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.
EGPI/Firecreek, INC.
Public Relations and Shareholder Information
Joe Vazquez, 817-886-3297
info@egpifirecreek.net
Source: Business Wire (November 20, 2006 - 8:10 AM EST)
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