Woodlands, TX., Nov. 20, 2023 (GLOBE NEWSWIRE) -- BlueFire Equipment Corp. (OTC: BLFR) (“BLFR” or the “Company”), a specialist in emerging industry acquisitions, today announces its third quarter fiscal 2023 financial results, highlights, and outlook.
Financial Results:
As of September 30, 2023, the Company recorded:
$251,451 in Cash, a 9,571% increase compared to the quarter ended September 30, 2022.
$10,193,317 in Total assets, a 228% increase compared to the quarter ended September 30, 2022.
$783,637 in Revenues, a 3,363% increase compared to the quarter ended September 30, 2022.
$623,043 in Net Income, a 2,041% increase compared to the quarter ended September 30, 2022.
$169,366 in Net Cash Provided by Operating Activities, a 989% increase compared to the quarter ended September 30, 2022.
The above increases are attributed to our 90% purchase of Screaming Eagle Partners, LLC. (“Screaming Eagle”).
Highlights:
On September 27, 2023 the Company entered into a Business Combination Agreement (the 'Agreement') with Screaming Eagle whereby the Company will deliver 90% (or 45,000,000) of the 50,000,000 authorized shares of Preferred Stock Series A and 90% (or 900,000) of the 1,000,000 authorized shares of Preferred Stock Series B to the members (the 'Members') of Screaming Eagle in return for 100% of the membership interests in Screaming Eagle, which will become a 100%-owned subsidiary of the Company. The foregoing securities were exchanged on September 27, 2023. Screaming Eagle acquired 100% of the operated assets at Bedias Creek and 50% non-operated Gin Creek South assets from ETX in February 2022 with an effective date of January 1, 2022, for $6,400,000 using family funds to finance the all-cash acquisition. Bedias Creek consists of 19 wells on 10,000 acres producing 1,500 bbls / month of oil and 7,900 MCF / month of gas. Gin Creek consists of 50% non-operated working interest in 45 wells producing 5,300 bbls / month and 14,250 MCF / month in natural gas. Immediately subsequent to the transaction closing, the Board of Directors met to elect a chairman and add new members of the Board, as specified in the agreement.
Within the end of September 2023, Screaming Eagle BNR JV, LLC’s non-operating working interest operated by Burk Royalty, Co. was sold to Exponent Energy, LLC.
Outlook:
On October 26, 2023, the Company engaged with Eventus Advisory Group, LLC (“Eventus”), a management consulting firm specializing in finance, accounting, SEC compliance and strategic CFO advisory support services to assist in applying for an uplisting to NASDAQ.
On October 25, 2023, the Company’s wholly owned subsidiary, Screaming Eagle Partners, LLC, entered into a binding Letter Agreement (the “Binding Agreement) with Resource Rock Exploration, LLC. (“Resource Rock”) which will create a partnership that will potentially increase production and margins from the Bedias Creek and Gin Creek South assets.
Screaming Eagle will receive an initial cash compensation for the 12.5% interest obtained by Resource Rock with an additional $1,000,000 commitment to fund workovers and recompletions on Gin Creek and Bedias Creek wells with an additional $1,650,000 in cash to Screaming Eagle or continued development upon election. The CAPEX will potentially increase production and profits from the existing asset over the next six months.
The Binding Agreement’s Joint Operating Agreement (“JOA”) that was to be mutually agreed upon on or before November 3, 2023, has been extended due to the Company and Resource Rock under legal review. Screaming Eagle’s cash compensation for its 12.5% interest will be received upon executing the JOA.
On November 2, 2023, the Company submitted documents to the Transfer Agent to cancel 18 million shares of its Common Stock, which cancellation has not yet occurred.
On November 7, 2023, the Company, had its Authorized Shares of Common Stock reduced from 2 billion shares to 250 million shares and its Series Preferred Shares increased from 50 million shares to 99 million shares.
The Company plans on sharing its third-party monthly production reports each month once received. The reports will be uploaded onto the Company’s OTC Markets’ Disclosure tab under Supplemental Disclosure.
Our plan to acquire the remaining 10% of Screaming Eagle for the Company to own 100% of the subsidiary. The Company plans to change its corporate name and ticker change to better reflect its new direction which changes must be approved by FINRA.
We are reviewing PCAOB auditing firms to retain a PCAOB auditor and commence audits for the past 2 fiscal years.
BLFR’s Chairman of the Board states, “We are very pleased with the early results of the merger. BLFR is exploring several options to potentially increase the enterprise value of the company while guarding share structure integrity.”
About BlueFire Equipment Corp. (BLFR)
BLFR, after its first acquisitions in the oil and gas industry, Screaming Eagle Partners, LLC. operating in the state of Texas, is focused on increasing its acquisitions within the energy sector.
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