EGPI Firecreek announced the execution of a Definitive Agreement to acquire the Sierra Pipeline Gathering System and the Sierra Pipeline Company.
The Sierra Pipeline Gathering System was previously owned by the Koch Corporation. The Koch Corporation is considered to be the nation's largest privately owned company with sales in excess of 100 billion dollars for 2008. Currently, the Sierra Pipeline Gathering System has approximately 2076 miles of pipeline and pipeline gathering systems located primarily in the state of Oklahoma and adjoining states of Kansas and Indiana. The pipeline which was originally created to transport oil currently has over 28,000 wells within close proximity for utilization, production and transportation. The pipelines also have the capability to develop, gather and transport natural gas, as well as, additional opportunities. EGPI Firecreek plans to aggressively analyze, explore and exploit all potential revenue streams for the pipeline.
Conservative valuations estimate current assets to be in the 16 million dollar range. Additionally, a current 2009 appraisal estimates its overall potential value to be in excess of 150 million dollars once the property is utilized to its production capabilities.
Dennis Alexander, Chairman and CEO of EGPI Firecreek, stated, "This Definitive Agreement with the Sierra Pipeline Company is a major breakthrough in our efforts to initiate the revamping of our Oil and Gas division. We believe this milestone will set a significant precedent in once again establishing our Company as a productive and producing oil & gas company." He also stated, "Several mitigating factors have recently developed and we feel fortunate to have the backing of significant players who will have a vested interest in the success of this project. Additionally, we feel confident that this acquisition will round out our initial business model and give us the diversification that we initiated with the start of our M3 and SATCO D.O.T. construction units."
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