Oil Drilling Program to Be Developed in South Florida with the Company Anticipating Progressive Results with Their Ongoing Efforts in Europe
EGPI/Firecreek, Inc. (OTCBB:EFCR) announced today the signing of a binding Memorandum of Understanding (MOU) for the development of oil fields located in South Florida's geological basin known as the Sunniland Trend.
The discovery, development and production from the Sunniland Field spans more than 55 years and the long life has been generally attributed to continuous improvements in oil extraction technology. To date, more than 116 million barrels of oil have been produced from 14 fields all located within the Sunniland Trend.
Exploration activities in South Florida have been conducted by major multinational corporations such as Gulf, Sun Oil Company, Mobil, Shell, Texaco and Exxon. The interest in exploration in South Florida has been kept alive by the economic need for petroleum products and the continuing interest in this geological area by the proactive development plans of oil and gas mineral owners.
EGPI/Firecreek, Inc. and Newport Oil Corporation are moving ahead with the provisions set forth in the binding MOU towards finalizing the agreement. They are also anticipating the exploration and development of several fields which have already been identified.
John Bruynell, President of Newport Oil Corporation stated, "Newport Oil Corporation owns various production rights and leases in the Sunniland Oil Trend in South Florida. We have now entered into a MOU with EGPI Firecreek to fund the development of the first field. An independent field assessment has been prepared and a world class team has been assembled to fully develop the Sunniland reefs. Work will begin with 3D seismic studies which will show where the wells should be drilled. This will then be followed by drilling horizontal legs across the top of the reefs in order to maximize the oil reserve recovery. Successfully located wells within the Sunniland Reef have each produced up to 4 million barrels of oil."
EGPI Developments in the Ukraine
Additionally, EGPI/Firecreek has confirmed that several progressive accomplishments have been made with their efforts in the Ukraine. As previously announced, the Company has been working on the rights to develop and rehabilitate several oil fields in this country. The Company has been working in the Ukraine and historically focused on rights to develop and rehabilitate certain oil field acquisition programs in this country and has now positioned itself to build a regional base for activities. From its continuing progress, the Company has evolved to the final stages for the strategic acquisition and implementation program to acquire the Bugrovatovskoye oil field located in the Akhtyrskii district of the Sumskii region, Sakhalinsk oil, gas condensate mature field located in the territory of the Krasnokutski District of the Kharykovski Region, Bukovyna oil company specifically created to develop the oil and gas fields known as Staykovskoe and Putylskoe in the Ukrainian Province of Chernovtsy in South Western Ukraine, and a Ukrainian oil and gas servicing joint stock company with two oil concessions operating currently with about a 400 employee staff, several rigs, fracturing equipment, complimentary equipment and a laboratory infrastructure complete with a licensed evaluation team. Terms of the acquisitions shall be subject to final due diligence as well as board, investor, and requisite third party approvals.
EGPI/Firecreek's Chairman, Dennis Alexander and Director Rupert Johnson in a joint statement confirmed, "The cumulative efforts made by both independent technical and engineering team members along with our Executive and Finance Committees have finally borne positive results for the company. We anticipate over the next 10 days an announcement wherein a significant partnership arrangement will bring strategic finance relationships with additional management and the technical skills needed to complete the Ukrainian projects. These progress achievements in the Ukraine have been assisted strategically from the continued efforts of Dr. Rusbek Bisultanov, EGPI Firecreek, Inc.'s east European consultant and shareholder. Further we expect to have updates which will detail the progress we are making both domestically and internationally. We are pleased that certain opportunities have been made available to us which we believe will ultimately enhance the Company's growth potential. Additionally, we should see a definitive paradigm shift in our operations over the next several months."
EGPI/Firecreek Inc. through its Firecreek unit is focused on oil production with an emphasis on acquiring existing oil fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories on an international basis.
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 EPGI 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.
