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.
Most Popular Articles
From the Career Center
Jobs that may interest you