EGPI Firecreek, Inc., through its wholly-owned subsidiary Firecreek, is focused on rehabilitating and enhancing production methodologies in order to yield greater efficiency from existing fields while actively engaging in the acquisition of oil fields with proven reserves.
The Company today provided a status update on its West Texas Three Well Program (the Program) with Whitt Oil and Gas, Inc., (the Operator), in addition to evaluations currently underway.
With imminent production capacity from the Program, EFIR was able to report a $4M increase in assets on the Company’s recently filed 10-K for FY 09 (ended Dec 31).
Rehab of the Program’s first target, the Young well, has proceeded apace of expectations despite record breaking rain, snow and even ice storms during 1Q 2010. Showing excellent initial results, the well is now being tested to quantify maximum resource potential and the need for any additional stimuli.
Rehab of the Program’s second objective, the McWhorter well, kicked off on March 29, with initial prep work and the identification of formation intervals via the gamma ray electric log in order to accurately plan the overall work program.
During initial prep work, the formation already began coughing up oil and gas, so the Operator ordered a 2-day swab test to determine if additional stimulation is even necessary, suspecting that the well could just be put on the pump and begin production immediately.
With such encouraging reports from the Operator, everything looks as though it is progressing on schedule, with the swab test results due April 16, and a projected completion for all three wells within the program within just three more weeks.
In addition to the rousing news about operations in West Texas, EFIR is actively engaged in negotiating several acquisitions in and around West Texas, in the 900-33k-acre range, which would entail rehabilitation, enhancement, and new drilling on multiple wells; simultaneously, the Company is negotiating acquisitions in oil and gas servicing, and anticipates aggressively securing Definitive Agreements to that effect.