EGPI Firecreek Begins Evaluation on the Fat Ranch Oil Field
EGPI Firecreek and its wholly owned subsidiary, Firecreek Petroleum, Inc., will be sending in an operating and technical team to begin on-site evaluations of the Fant Ranch Oil Field in early September. The Company's plans include implementing the first of several work programs with the goal of improving existing oil production output from the recently acquired 2,520 acre oil producing Fant Ranch field located in Knox County, Benjamin, Texas.
The Company's work programs will begin by initiating a series of improvements to the current producing wells beginning with standard industry techniques to increase well efficiency. It is believed that with these initial improvements existing oil production, direct sales and revenues can be increased between 33% to 75%, or more. The Company has budgeted the funds for the initial improvements included in its recent acquisition financing.
Subsequent planned work programs include evaluations for bringing an additional eight existing wells back on production. Preliminary estimates suggest that combined with the planned initial improvements, the additional eight wells could potentially triple the field's current production level to between 100 to 200 barrels of oil per day.
In ongoing analysis, Operations and Management for the Company believes that based on historical production records, the Fant Unit has the capability of being restored to production levels of potentially 500-1,000 barrels of oil per day. Subject to securing the necessary CAPEX financing, it is believed that these production levels can be achieved by the restoration of an existing waterflood system. The equipment necessary for the system was included in the Fant Ranch Unit property leases, wells, reserves and interests purchased by the Company.
The Company will work with its' Fant Ranch operator Success Oil on the continued development of its comprehensive phased in work programs.
Dennis Alexander, the Company's Chairman and CFO, stated, "We are extremely excited about the future prospects for our Fant Ranch Oil Field and its ability to significantly increase our overall revenue stream both near term and subsequently over time as we implement the planned work programs. We are currently negotiating the financing of sufficient CAPEX for all work programs identified which will allow for the potential increase of oil production and sales revenue. Our ultimate goal is to increase the oil production from the Fant Field to the highest level economically feasible. Additionally, the Company will be working on acquiring additional properties, projects and interests with the same potential upside characteristics that Fant Ranch project presents."
The Company is reviewing potential leases, interests and opportunities, which are located throughout the U.S. and its surrounding regions. The Company is working on specific financial opportunities for the funding of potential project acquisitions and the respective capital expenditure requirements for each.
- 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)