SCOTTSDALE, Ariz., Oct. 18, 2012 -- EGPI Firecreek, Inc. (OTCBB: EFIR) is pleased to announce initial production results from the successful workover on the J.B. Tubb Leasehold, Crawar #2 well in West Texas.
As previously announced on August 28, 2012, the Company reported that funding had been secured in order to provide for perforating into the new untapped Glorieta Formation in the Crawar #2 well. Upon the initial start of the workover program the Company, along with their partners Mondial Ventures and Success Oil, were successful in striking oil and gas in the Glorieta Formation.
The Company reports that for the month of September 2012 they produced 1700 Barrels of Oil and 8 Million Cubic Feet of Natural Gas. The project has already returned the initial work program investment dollars the first half of the month with the bulk of sales the last 2 weeks of September. The initial results were from free flowing liquids. It is expected the Company will put the well on pump to stabilize ongoing production levels and may frac the well in the near future.
The Glorieta formation is a proven behind pipe oil & gas zone. The properties operator, Success Oil Inc, estimates usual recoverable amounts of up to 75,000 bbls. of oil and 100,000 mcf of natural gas for this formation's pay zone.
Dennis Alexander, EGPI Firecreek's CEO, stated, "Our initial results have been better than expected. We are looking forward to further implementing our planned projects on the heels of our excellent first result."
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.
About the J.B. Tubb Leasehold Estate/Amoco Crawar field
The J.B. Tubb Leasehold Estate/Amoco Crawar field currently has three wells in operation on the property. The property is located in the Permian Basin on the Crawar Field, which is directly adjacent to property operated by Chevron Corporation in Ward County, Texas (12 miles southeast of Monahans and 30 miles west of Odessa in West Texas). The Crawar field is currently considered to be one of the most prolific oil & gas fields in West Texas. Several major oil companies have already established several ongoing drilling projects in this large field. Present Crawar field statistics show overall production capabilities of 500,000 barrels of oil and 4.6 BCF of natural gas per month.
The Company along with its partners anticipate drilling a series of wells on the J.B. Tubb Leasehold Estate/Amoco Crawar Field, South 40 according to certain rights and option programs. More specifically, as initial ramp up for the Company's drilling program, Mondial Ventures plans to exercise one of its options by providing $1.575 million, raised on a best efforts basis, for the drilling of an Ellenburger Well.
Public Records reveal an average production rate of 240 barrels of oil per day for Ellenburger wells on properties adjacent to the South 40 acreage that are currently owned by Chevron, BP and McCulloch Oil Corp. of California.
For pictures and videos of the remediation work as well as oil & gas production on the Glorieta Formation please go to: http://www.youtube.com/user/EGPIFirecreek?feature=mheeI
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:
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SOURCE EGPI Firecreek, Inc.