SCOTTSDALE, Ariz.--(BUSINESS WIRE)--EGPI Firecreek, Inc. (OTCBB: EFIR) announced today, the execution of a Letter of Intent to acquire Vishnu Holdings, LLC. Both companies are confident that together, they can execute Vishnu’s strategy and plan to immediately begin exploiting the vast oil and gas reserves in the shallow waters of the Gulf of Mexico. The acquisition will include a stock swap, and is currently being pursued in an expeditious manner by both parties, in order to finalize a Definitive Agreement, in as short a time frame as possible.
The Capital expenditures required for the plan are $294 million dollars. Proceeds are to be earmarked for the completion of permitting and drilling for 19 wells over a 5 year time frame. A certified third party engineering firm reserve report indicates over $2 billion dollars in recoverable oil and gas from the lease area, based on an $80 dollar per barrel of oil and $4 dollar MCF for gas.
Dennis Alexander, EGPI Firecreek, Inc., CEO and Chairman, stated, “We are very pleased to have signed this Letter of Intent with Vishnu Holdings, LLC. We are very impressed with the blue-chip oil and gas management professionals they have at their helm. Their experience of working for Fortune 500 oil and gas companies, has paved the way for us to capitalize on oil and gas plays in the Gulf of Mexico’s shallow waters.”
Rashmi Yajnik, CEO of Vishnu, commented, “By becoming a part of Firecreek, we become a greater company. Combined, we have the might needed to fully achieve the plans we have happening in the Gulf. The scale of oil and gas production from our Gulf leases is anticipated to be proportionate with the general region’s other successful discoveries. We have been working on this program in the Gulf for over three years. We have a strong Geologist and Geophysicist (G&G) division, as well as a strong operating division (bonding-permitting-procurement) that comprises Vishnu. Our independent reserve report indicates great potential within our lease region. Once the financing and acquisition is completed, the process will accelerate, with the goal that our first well will be producing within twelve months.”