EGPI Firecreek, Inc. Completes Sale for Portion of Oil and Gas Interests for $1.15 Million
Proceeds To Expand EGPI's Oil & Gas Operations With The Joint Development of Future Wells
SCOTTSDALE, Ariz., Aug. 2, 2012 /PRNewswire/ -- EGPI Firecreek, Inc. (OTCBB: EFIR) announced it has finalized its sale for a portion of its oil & gas interests to Mondial Ventures, Inc. (OTCBB: MNVN) for $1.15 million in a share issuance.
As previously reported, EGPI had entered into an Agreement to sell a portion of its working and net revenue interests to Cubo Energy, PLC. Recently, Cubo authorized the assignment of the Agreement over to U.S.-based Mondial Ventures, Inc. who has recently completed the transaction.
Terms for the purchase of the North 40 acres of the J.B. Tubb Leasehold Estate/Amoco Crawar field consists of a 37.5% working interest ("WI"), 28.125% net revenue interest ("NRI") in the oil and gas interests, and pro rata oil & gas revenue and reserves for all depths below the surface to 8500 ft. including all related assets, fixtures, equipment, three well heads and three well bores. The field is located in the Permian Basin and 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). Based on engineering reports, the working and net revenue interests carry a gross value of $1,150,000. Currently, there are three wells in operation on the property currently producing approximately 300+ barrels of oil per month. Plans are to immediately increase and stabilize oil and natural gas production, thereby increasing initial production to approximately 900 to 1000 barrels of oil per month, with additional anticipated oil production increases, as the remedial work programs progress. The purchase also includes the Highland Production Company No. 2 well-bore in the oil and gas interests and pro rata oil & gas revenue and reserves with depth of ownership from 4700 ft. to 4900 ft.
This property is located and is part of the Crawar field, which 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 respectively.
Additional terms for the purchase include an option to develop and drill a series of wells on the J.B. Tubb Leasehold Estate/Amoco Crawar Field, South 40. The following formations are currently available for oil & gas drilling considerations in the South 40 acreage: Glorietta, Upper Clearfork, Tubbs, Lower Clearfork, Witchita Albany, Wolfcamp, Detrital Zone and Waddell formations.
Mondial Ventures initially plans to exercise one of its options by providing $1.575 million, raised on a best efforts basis, for Capital Expenditures ("CAPEX"), for the drilling of an Ellenburger Well located on the South 40 acreage. The work program calls for drilling down to an 8,300 ft. depth on a turn-key basis. 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.
Under terms of the finalized Agreement Mondial Ventures has assumed $450,000 of oil and gas related liabilities from EGPI Firecreek. Additionally, EGPI Firecreek shall retain a 37.5% WI and 28.125% NRI for any future development and drilling oil & gas work programs with Mondial Ventures.
Dennis Alexander, EGPI's CEO, stated, "We believe the synergies created by this transaction will fuel a baseline for our potential growth in the development of oil & gas wells, with a view of decreasing our operational debt and liabilities, while expanding our oil & gas opportunities." He also stated, "Now that we have completed this transaction, we can look forward to increasing much needed shareholder value to our Company."
For more details regarding the transaction please see the Company's most recent 8-K filing.
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. EGPI Firecreek, Inc. is also planning to expand into producing energy through alternative energy sources through their recently acquired Arctic Solar Engineering subsidiary.
About Mondial Ventures, Inc.
Mondial Ventures, Inc. is engaged in the acquisition of Oil & Gas properties and assets that can be developed into revenue producing assets. The Company has put an emphasis on acquiring existing Oil fields with proven reserves or by the rehabilitation of oilfields with potentially high throughput.
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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