Ukraine Project Developments
As previously announced, on March 13, 2007, EGPI Firecreek, Inc. entered into a definitive Memorandum of Understanding with Star Energy Corporation regarding certain projects in the Ukraine wherein Star will acquire from EGPI/Firecreek certain rights in Angro Ukra Energy Ltd., a reserved special purpose Ukrainian Holding Name for the acquisition and development of specific Ukrainian projects.
Mr. Rupert Johnson, Director and Chairman of the Executive Committee for EGPI/Firecreek along with Dr. Rusbek Bisultanov, a special political and business consultant to EGPI/Firecreek for the Ukraine projects, have been leading the due diligence efforts and are making favorable progress toward the implementation program regarding the Company's alliance and key pact Agreement with Star Energy Corporation. Mssrs. Johnson and Bisultanov along with members of Star Energy have already organized legal, accounting and engineering teams. They have also had on site meetings with various Company Executives and key personnel for the target companies and projects including Region Services, Sakhalinska, Bukovyna, and Bugrovatovskoye. The team will be returning to the Ukraine this week and will be continuing on the developments and progress for the implementation program. A tremendous effort has been made to expedite the due diligence requirements and is currently ahead of schedule, within the originally proposed 60 day time frame established as a goal for the definitive agreement to be completed. The company does however reserve the right to utilize the full 60 days in order to fulfill all its obligations under the agreement.
Dennis Alexander, President of EGPI Firecreek stated, "We are excited about the opportunity we have patiently worked to initiate since 2005 through Firecreek Petroleum. We look forward in continuing assistance via the Company's pact with Star Energy, in helping to build a footprint for the major project relationships to be initiated in Ukraine. Although there is much work to be done, we believe there are now signs of a consistent momentum on new growth and we look forward to bringing a new revenue base to the Company through and upon completion of the Agreements in progress."
The Company is in the process of initiating meetings with specific Company Executives, along with Dr. Rusbek Bisultanov, and various industry and financial consultants. These meetings are scheduled to be held in Istanbul Turkey and Almaty Kazakhstan in late April 2007, in order to review the current status regarding a 1.7 million acre exploration block known as the Kamenkovsky license.
It has also been previously reported that Firecreek Petroleum was continuing to work on the clarification of certain legal issues affecting the status of the Kamenkovsky exploration license. Firecreek's historical efforts in Kazakhstan represented substantial in-country negotiation and technical team visits in Fiscal 2005 for the potential developments related to the program. The Company looks forward to activating a new progressive plan that will secure additional time to develop and create a new strategic alliance for the development of the Kamenkovsky exploration license in Kazakhstan.
Ten Mile Draw Prospect Area (TMD)
As previously announced, the Company through its Firecreek Petroleum unit and its operating partner, Newport Oil Corporation, recently completed the third of a three well workover program including the 16-1, 7-16, and 13-9 wells located in Green River Basin, Wyoming. The Company continues to actively seek and evaluate additional financial prospects for the drilling of up to eleven new wells in the TMD prospect area beginning with a 3-5 well drilling program. The Company and operating partner Newport Oil Corporation contemplates a drilling depth of 4,500ft. targeting to produce both the Almond Sand and Lewis Sand Formation. Not considering all risk factors, projections indicate excellent potential for a daily production rate of approximately 500 thousand cubic feet to 1 million cubic feet per day for each successful new well drilled and completed. Management believes that the 3-5 well program will be the next incremental step in the full development of the entire field and considers this to be a conservative approach in the best interests for the whole TMD project.
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, Pantina Oil and Gas Inc., Frontier Oil Inc. and Cabot Oil & Gas Inc.
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