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.
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.