EGPI Firecreek Inc. has initiated its most aggressive move towards establishing its oil and gas division. The company announced today the execution of a definitive agreement to acquire the Sierra Pipeline Gathering System and the Sierra Pipeline Company. EGPI Firecreek is purchasing Sierra Pipeline from Koch Corporation, the nation’s largest privately-owned company.
The Sierra Pipeline Gathering System has approximately 2,076 miles of pipeline and pipeline gathering systems located primarily in the state of Oklahoma and the 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.
EGPI Firecreek plans to analyze, explore and exploit all potential revenue streams for the pipeline. Conservative valuations estimate the pipeline’s current assets to be in the $16 million range. Additionally, a 2009 appraisal estimates its overall potential value to be in excess of $150 million once the property is utilized to its production capabilities.
Chairman and CEO of EGPI Firecreek, Dennis Alexander, 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 and gas company.”