EGPI Firecreek announced the commitment for a debt financing for its planned rework and enhancement project on their recently acquired oil and gas property known as the Tubb Leasehold Estate located in the AMOCO/CRAWAR Field in Ward County, TX.
As previously reported, the Company plans on plugging the "A" well at the currently producing depth, then come up-hole in order to produce the well from a shallower depth (approximately 3,700 ft – 3,900 ft). The Company anticipates that this rework will significantly increase production of both oil and gas while lowering repair and maintenance costs.
Williamson Petroleum Consultants of Midland, TX had previously performed an engineering evaluation to estimate proved reserves at the Tubbs Estate location, in addition to future net revenues of the properties. The evaluation showed an estimated $10,223,550 in total proved reserves. The Company is now in the process of having Williamson Petroleum update their engineering evaluation to reflect the rework project into the new reserve.
Dennis Alexander, CEO and Chairman, stated, "We are very happy to have this debt financing for our rework project with the Tubbs Estate. Fortunately, we were able to negotiate simple terms for the financing, which will now allow us to begin the project sooner than we had anticipated. We now look forward to its completion, and to the results we are confident we will be able to achieve."
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