Monday, May 21, 2012

EGPI Firecreek, Inc. (EFIR) Updates Market on Q2 Activities, Including Development of Barnett Targets in West Central Texas

EGPI Firecreek today announced serious Q2 momentum drivers, including projected development activities on the 240-acre Boyette Lease, development on the South 40, the completion/sale of 50% of the North 40 interests in their J.B. TUBB Lease, Inc., and sale of their 51% majority interest in Arctic Solar Engineering. EFIR currently operates via wholly-owned subsidiaries, with oil and gas services handled by Chanwest Resources, LLC and resource acquisition through Energy Producers, Inc.

Needless to say it’s been a huge Q2 over at EFIR and projections indicate substantial development activity for the remainder of the interval, with elements like the (previously announced) signing of a Letter of Intent with Cubo Energy, PLC to kick off drilling programs in West Central Texas, as the pair goes after rich Barnett Formation targets. Looking at as little as 10-14 days before definitive agreements with an assignee of Cubo are rendered and then an extensive 3D seismic surveying agenda designed to quantify the 240 acre Boyette site down in Shackelford County, TX.

EFIR also signed a key agreement with Cubo back at the start of March this year, making a $1.15M sale of North 40 oil and gas interests in the J.B. Tubb Leasehold Estate (currently in restructuring due to recent regulatory changes on the Frankfurt Stock Exchange, interest assignments via definitive long form agreement projected within a 10-14 day window). This agreement will place Cubo (or an assignee) in a financing role for the initial sinking of an 8.3k foot well targeting the Ellenburger Formation (on an earn-in basis), as well as setup the framework for additional, planned infrastructural development/participation via an earn-in/financed basis (projected initial CAPEX of some $1.575M).

CEO of EFIR, Dennis Alexander, cited the regulatory environment on the Frankfurt Exchange over the last six months (leading to several unforeseen delays) as the primary mover behind the modification of their agreement with Cubo, reassuring shareholders that requisite changes have since been formulated, and that the clear forward direction established for this relationship has energized both parties.

This relationship will help to facilitate the planned activity in West Central Texas, as Cubo and EFIR pursue specific Barnett Shale characteristics mapped via the 3D seismic work. The receptivity is strong on all accounts, especially geologically speaking, and both companies are eager to get 1-2 horizontals (or an equivalent 8 verticals) in on the Boyette lease as soon as possible.

Mr. Alexander underscored the significance of the drilling programs aimed at developing the Ellenburger Formation, the seismic work being done, and preparatory vectors for realizing some serious Barnett action.

In addition to all this hydrocarbon effort, EFIR announced signing of a Letter of Intent with W2 Energy, Inc., covering the sale of the company’s 51% majority interest in subsidiary Artic Solar Engineering, Inc. (definitive agreement projected within 7-10 days). Mr. Alexander noted the completion of required/audited year-end and unaudited Q1 financial statements by both parties, offering the market a sound benchmark of the deal, as well as projecting a long, healthy relationship between both parties moving forward.

For more information on today’s announcements, or to find out more about EGPI Firecreek, Inc. please visit the company’s website at: www.EGPIFirecreek.com

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