"The start up of this third well brings us in line and on target with the stringent criteria set forth by our executive committee at the beginning of this year," said Dennis R. Alexander, EGPI/Firecreek’s chairman and CEO. "We believe that after this third well is up and fully operational, we will be positioned to utilize our consolidated revenue streams to secure structured financing terms for additional multi-well drilling and development programs located in the TMD core area. It is envisioned this project will assist the company's planned growth at an increased rate towards cash flow and asset development. We expect to continue the momentum we have developed to carry forward through 2006 and into 2007."
As previously announced, the 13-9 gas well will be reworked under the same joint venture agreement and provisions: with Newport Oil Corp. for the first two wells. Each company will own a 50% working interest, and Newport Oil Corp. will be the well operator.
"The 13-9 well is significant in that it is the third and last existing well that is being reworked under the Firecreek/Newport joint venture,” said John Bruynell, Newport’s president. “We have reason to believe it has the greatest potential of all three wells in producing the most natural gas on a daily basis, as well as the ability to recover the greatest amounts of gas reserves over the life of the three wells. We are anxious to begin work immediately and have already arranged for new casings and the workover rig to be on location this week. Additionally, Halliburton is formally scheduled to run new high tech fracs on both the Almond and Lewis sand formations on July 22, 2006."
EGPI/Firecreek anticipates the 13-9 well to be running and fully operational on production by September 2006.
EGPI Firecreek Inc., through its Firecreek Petroleum unit, is focused on oil and gas production with an emphasis on acquiring existing oil fields with proven reserves. Additionally, the company specializes in the rehabilitation of potentially high-throughput oilfields, resource properties, and inventories on an international basis.
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