These five additional fields are located within the general vicinity of the Krasnodar and Komi regions and are considered highly prospective if Firecreek is successful in rehabilitating and developing the fields. According to Minneftegazstroi engineers, the five older fields have the potential for significant recoverable oil reserves.
A contract signing will include these new fields and is scheduled for December 3, 2004 in Moscow.
Additionally, the Firecreek technical team headed up by Dr. James C. Howard will meet in Moscow with the Minneftegazstroi engineering staff on December 07, 2004 to initiate the technical evaluation and on-site inspection of the collective eight fields. This evaluation is to gather field and well data to be used by a major US engineering firm which will help confirm the reported reserves. When confirmed, the Joint Venture operated by Firecreek, which is also a working interest owner, will begin to move forward with a work program to develop the reserves in its Russia rehabilitation and development program with Minneftegazstroi.
Firecreek president John R. Taylor stated, "The field turnover will be staged over a period of three months starting in early in 2005." He also said, "The weather in the Komi region fields will be a significant factor in the turnover timetable and the amount of field work that will be done in the first year before winter weather sets in. The geophysical field work will start sooner than the well rehabilitation work and should be completed by late fall. Initial information indicates that some wells in the Black Sea area may only require remedial repairs and stimulation in order to bring them back to normal production. We anticipate that this will be reflected with a rapid increase in the first half of our 2005 production sales figures."
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. Other companies in the oil sector include Marathon Oil Inc. (MRO), Pantina Oil and Gas Inc. (POG), Frontier Oil Inc. (FTO) and Cabot Oil and Gas Inc. (COG).
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