EGPI/Firecreek Completes $2M Project Financing
EGPI Firecreek, Inc. has received a $2,000,000 7-year interest only debenture. The proceeds from this financing are available to the Company for use in pursuing its current plans to increase revenue and cash flows for 2007 by negotiating the acquisition of several potential US based oil and gas properties that have proven reserves and are capable of producing revenue streams.
Company is now currently reviewing several potential leases, interests and opportunities at this time, which are located throughout the U.S. and its surrounding regions. Once the Company pinpoints an acquisition target, the project will still be subject to many things, including a thorough due diligence process, before any transaction can be finalized.
Dennis Alexander, Chairman and CFO, stated, "This interest only debenture financing is the first of many steps the Company has taken in order to help ensure our abilities to find and acquire undervalued Oil and Gas lease properties that have proved reserves and to bring additional revenue streams into the Company. Additionally, we feel confident that this financing will give us the ability to take a more aggressive posture in completing projects which we have already identified."
Ukraine Project Developments
As previously announced on March 13, 2007, the Company entered into a Memorandum of Understanding with Star Energy Corporation regarding certain projects in the Ukraine. The transaction reported is subject to certain conditions and the execution of a definitive agreement which is subject to various approvals.
The Company reports that good progress has been made to date since last reporting. The Company extended additional time to Star Energy in order to assist in concluding the implementation of securing the oil and gas assets of the reported projects. Further time will assist the delivery of Ryder Scott third party engineering reports to Star Energy as well as other elements and ongoing detail requirements involved in the transaction. The Company expects to complete a Definitive Agreement with Star by the third quarter of this year.
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. (POG), Frontier Oil Inc. (FTO) and Cabot Oil & Gas Inc. (COG).
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