EGPI/Firecreek Acquires 100% WI in the Fant Ranch Unit
EGPI Firecreek, Inc. (OTCBB:EFCR) wholly owned subsidiary Firecreek Petroleum, Inc. acquired a 2,520-acre currently producing Oil Field with 17 wells known as the Fant Ranch Unit located in Knox County, Benjamin, Texas.
The Fant Ranch field was initially discovered in 1980. Currently 17 wells are in full production and the Company has identified an additional 19 wells, several of which can be reworked and brought back to production. The wells that are currently in production have been historically producing an average of 900 to 1,400 barrels of oil per month consistently for the past several years. From discovery, the Fant Ranch Unit has produced over 2,700,000 million barrels of oil.
The production formations for the wells include the Bend Conglomerate: Sands I, II, III and IV. All are producing oil at zone depths from 5,801 feet to 7,016 feet. The average depth of the collective 17 oil wells in production is approximately 6,300 feet. Oil gravity is 36-42 API, and the wells have a natural geological water drive.
In pursuing its current business model to increase revenue and cash flows for 2007, the Company completed and closed this transaction with Ward Energy LP on July 11, 2007 with an effective date of July 1, 2007. As a result of the transaction the Company now anticipates an immediate significant increase in its revenue stream.
Ownership of the Fant Ranch Unit, as well as its oil production interests on a going forward basis, is an exciting moment and an important foundation for the Company's future plans. Management believes that the increase of the Company's revenue stream and cash flow will now be realized and, from this point on, can be phased in step by step by the existing production in the Fant Ranch field.
The Company's plans, going forward, include the evaluation of the property for several potential work programs with a goal to double or triple the current output for the existing oil production of the fields and the potential to put another 8 wells back on production in addition to the 17 existing wells.
In an effort of achieving these goals, the Company has teamed up with Success Oil Company, Inc., a 16-year operator licensed in the State of Texas, for the transition and takeover of operations of the properties. The Company will work with Success Oil operations in developing a comprehensive phased work in plan for the rehabilitation of additional wells.
Dennis Alexander, the Company's Chairman and CFO, stated, "The interests acquired in the Fant Ranch field add an important base infrastructure to the Company and will begin a new expansion stage for our business model in Oil production in the U.S. The additional revenues and cash flow from the Fant Ranch field will allow for the development of the new assets and assist with the completion of our strategic plans to build a base with similar properties as a foundation for future growth." Furthermore, "As we have consolidated operations, and considerably reduced expenses, we will look to rework historical efforts pursued by Firecreek Petroleum on certain key potential overseas programs in the Former Soviet Union countries. We will continue our efforts in developing by way of strategic alliances and joint ventures for the continued expansion and presence of the Company."
The Company continues to review potential leases, interests and opportunities, which are located throughout the U.S. and its surrounding regions.
- 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)