EGPI/Firecreek Plans Drilling Program Expansion

Dennis R. Alexander, chairman and CEO of EGPI/Firecreek, Inc., said Thursday that the company plans to increase its initial five-well drilling program. He also announced the results of an independent reserve report study regarding the reserves at the Ten Mile Draw (TMD) field located in the Green River Basin of Wyoming.

EGPI/Firecreek and Newport Oil Corp. are joint venture partners on three wells in TMD and are presently negotiating for the drilling of 11 additional wells within the core area starting sometime in EGPI/Firecreek’s third quarter and ending sometime within its 2007 first quarter. The company said it is confident that its presence will increase EGPI/ Firecreek's working and net revenue interests via its Firecreek Petroleum unit. “Although our initial five-well drilling program is certainly viable, certain opportunities have recently arisen which lead us to believe that with appropriate funding, we will be able to expand our drilling program from five to 11 wells in the TMD area,” said Alexander.

EGPI/Firecreek and Newport confirmed that the latest report from independent consultants Allen and Crouch Petroleum Engineers of Casper, Wyo., are projecting ultimate reserves for the 11-well drilling program to yield an additional 6.5 billion cubic feet (BCF) of natural gas from the Lewis Sand formation and 17.6 BCF from the Almond Sand Formation. The report concludes that the total unrisked proven undeveloped (PUD) reserves for these two zones are estimated at 24.1 BCF plus an additional 146,976 STB (stock tank barrels) of oil or gas condensate. These figures do not include the PUD reserves in the coal bed methane zone found in each well. Those reserves will be separately evaluated and reported at a later date.

“A tremendous effort has been made in the last several months to get us to this stage,” noted John Bruynell, president of Newport and the project field operator for the Ten Mile Draw joint venture. “We are not surprised with the engineering firm’s reserve report and feel that this is just a start of the type of program expansion in the TMD that I believe will substantially increase our natural gas production levels over the course of the next several months.”