SCOTTSDALE, Ariz., March 1, 2012 /PRNewswire/ -- EGPI
Firecreek, Inc. (OTCBB: EFIR) announced an Agreement to sell 37.5%
working interest and 28.125% net revenue interest (NRI) in its
three Crawar #2 oil wells located on the North 40 acreage of the
J.B. Tubb Leasehold Estate to UK based Cubo Energy, PLC (CUBO) for
1.15 million dollars in a share
issuance.
The Agreement also calls for additional $4.5 million in 2012 capital expenditures (CAPEX)
for new drilling and joint development on a best efforts basis for
the Tubb South 40 acreage interests. Under the terms of the
Agreement, CUBO on an earn-in basis, will finance the production of
an initial Ellenburger well to a depth of 8,300'. Capital
Expenditures for the proposed Ellenburger are $1,575,000. CUBO has also agreed on a best
efforts basis to finance drilling programs for two additional wells
with several additional potential drilling target locations
available for development on the South 40 acreage of the J.B. Tubb
Leasehold Estate. The strategic joint parties of EGPI Firecreek,
CUBO and Success Oil (the Company's partner and operator) look
forward to pursuing the new drilling program on the South 40 and
further remedation programs in the North 40. Terms to be disclosed
at a later date.
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, Waddell.
Dennis Alexander, EGPI's CEO,
stated, "We believe the synergies created for this transaction will
fuel our continued growth in the development of oil & gas
wells, with a view to decreasing our operational debt and
liabilities. We look forward to working with CUBO Energy, PLC and
are excited with the expertise, financing and prospects they bring
to the table."
Brian Kennedy, CUBO Energy's CEO,
stated, "This is a great acquisition for us as we increase our oil
and gas asset base. We look forward to working with the Firecreek
team as we develop this excellent prospect."
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.
Safe Harbor
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:
http://www.sec.gov/divisions/corpfin/guidance/cfoilgasinterps.htm
Public Relations and Shareholder Information
Joseph Vazquez
754-204-4549 or
Email: infinityglobalconsulting@gmail.com
SOURCE EGPI Firecreek, Inc.