EGPI/Firecreek Acquires Stake in Green River Basin Acreage
EGPI Firecreek aquired a 50% working interest in 1,600 acres of proven undeveloped and probable gas reserves in Green River Basin, Wyoming. These reserves are estimated to contain in excess of 10 BCF (billion cubic feet) of gas.
This project will be operated by Newport Oil Corporation, and is part of their Ten Mile Draw Coal Bed Methane (CBM) gas development project. The CBM formation has a history of prolific gas production.
Dennis R. Alexander, Chairman of EGPI Firecreek, stated, "This will provide a solid domestic revenue base and the potential for greater future revenues as the project develops."
The total investment required to initiate phase one of the project is in excess of $2.2 million of which EGPI Firecreek has already delivered their $1.1 million share. This will allow work to commence immediately. Funding for EGPI Firecreek's initial 50% stake has been provided by Dutchess Private Equities Funds.
This project joins two longtime oilmen: John E. Bruynell,
President of Newport Oil, and Firecreek Petroleum, Inc.'s President
and CEO John R. Taylor. The two have drilled over 100 wells together
on locations in Texas since 1975. Mr. Bruynell indicated during the
signing of the agreement at Firecreek's Fort Worth office that the
project will start immediately with the rehabilitation of the
venture's first two existing wells located on the block. In addition,
other rehabilitation opportunities, as well as other productive
formations in the block, will be explored. Mr. Bruynell stated that an
aggressive 5 to 10 well program of development and exploration
drilling is in the planning stages and is expected to commence in late
spring 2006. A Gas Purchase Contract and pipeline connections have
already been obtained and are ready for initial gas sales in early
December 2005. This is expected to be the first phase of the joint
venture's development in the area of CBM opportunities.
- Success Oil Co to Start Workover Program in West Texas (Mar 29)
- EGPI Eyes Texas, Louisiana Leases (Sep 22)
- EGPI Signs LOI for Tx. Acreage (Jun 27)
Company: Newport Oil more info
- EGPI/Firecreek Reports Progress in Ukraine, Elsewhere (Apr 04)
- EGPI/Firecreek Plans Drilling Program Expansion (Jul 13)
- EGPI/Firecreek to Add a Third Wyoming Gas Well (Jul 11)