EGPI Firecreek and its wholly-owned subsidiary, Energy Producers, have finalized and completed a Definitive Agreement to acquire the majority interest in a producing oil and gas property in Ward County, Texas.
Under the terms of the agreement, which shall be effective March 1, 2011, the Company through its wholly owned subsidiary Energy Producers, Inc. will acquire a majority 75% Working Interest and 56.25% corresponding Net Revenue Interest in the North 40 acres of the J.B. Tubb Leasehold Estate/Amoco Crawar field and oil and gas interests, including all related assets, fixtures, equipment, three well heads, three well bores, and pro rata oil & gas revenue and reserves for all depths below the surface to 8500 ft. The field is located in the Permian Basin and the Crawar Field in Ward County, Texas (12 miles west of Monahans & 30 miles west of Odessa in West Texas).
Included in the transaction, Energy Producers will also acquire 75% Working Interest and 56.25% corresponding Net Revenue Interest in the Highland Production Company No. 2 well-bore located in the South 40 acres of the J.B. Tubb Leasehold Estate/Amoco Crawar field, oil and gas interests, pro rata oil & gas revenues and reserves with depth of ownership 4700 ft. to 4900 ft.
The acquisition will be the foundation for the restructuring of the Company's oil and gas operations, and will provide assets for new potential oil & gas work programs and developments. The Company is currently working on securing additional rights which would provide for more potential work and development programs, encompassing several multi-pay zone opportunities on additional acreage in the J.B. Tubb/Amoco Crawar Field locations.
Dennis Alexander, EGPI's Chairman and CEO, stated, "We are extremely pleased with the future outlook of EGPI Firecreek's Oil & Gas division and this asset acquisition. We are very familiar with this property and are very excited with its revenue potential. Because of our ability to secure this interest and its revenue stream, we are confident that it will assist our future growth." He further stated, "We will continue to aggressively pursue producing domestic oil and gas properties, as well as, alternative energy sources as indicated by our recent acquisition of Arctic Solar Engineering, LLC."
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