EGPI Firecreek Inc (EFIR)

[Loonley Tunes]

I'm so happy to see the yesterday 8-k form ( http://ih.advfn.com/p.php?pid=nmona&article=43259595&symbol=NB^EFIR )

in the 8K form is written:

"... I.Purchase of Stock and Purchase Price

1.The Company agreed to pay to the Sellers aggregate consideration delivery of:
(a) 22,946,859 shares of the Company’s common stock issued to the Sellers pro rata based on their ownership in CHANWEST representing $95,000 in value ("STOCK CONSIDERATION").

and

... II. Purchase Price Adjustment Mechanism

1. Of the shares to be issued to Sellers by the Company, ten percent (10%), or 2,294,686 shares shall be held back and not issued for a period of one hundred twenty (120) days from Closing (the “holdback period”) and shall thereafter be issued to Seller subject to the following conditions having been met within the holdback period. ...

and

... Additional services of Chanwest include marketing for its workover rig having pulling capacity for wells to 6000’ feet depth. It will be used with a crew on our own leases in our second phase of operations planned, along with our current status of workover rig for hire to operators.

Chanwest estimates approximately 2 million in gross revenues from operations over the next year.

For its third phase of operations the Company’s newest wholly owned subsidiary Chanwest will work alongside Energy Producers unit operations to evaluate potential for acquisitions and development strategies for the production of oil and gas operations, initially working towards acquiring strategic rehabilitation targets in and around Abilene and other areas in Texas. .... "



If i understand the those statments EFIR has bought Chanwest for about 22.95M shares representing $95,000 in value. This means that the price for a share is 95,000$/22,946,859 = 0,00414$ so the seller (company ore some other) who has sold shares from 0.0082 till 0.0040 has made some profit. This explain why the pps droped till 0.004$. At that point the seller had no profit.

So about 20M shares were sold at open market other 2.3M can be sold after 120 days .This imo explain this crazy volume of 10M for 2 straight days. If the average seeling pps was at 0.007$, this is worth: 20M shaers x 0.007$ = about 140.000$ (which rapresents another 50,000$ profit for the seller)

So EFIR bought Chanwest (estamiates 2M in gross revenue) for about 96,000$ .. imo this is a good deal if the estimates of Chanwest are true. Correct me if i'm wrong!


Good luck

Loonley Tunes

Before you buy something do a good DD and make your own conclusions. My post express only my oppinion.