Scottsdale, Ariz.-based EGPI Firecreek, Inc. announced a Letter of Intent to prepare and conduct drilling programs aimed at the Barnett Formation in West Central Texas with U.K.-based Cubo Energy, PLC.
Initial plans are to prepare and conduct a 3-D Seismic study for 240 acres covering the Boyette property in Shackelford County, Texas. The seismic study will focus on specific Barnett shale formation characteristics that will assist in the drilling of one and possibly two horizontal wells or an equivalent eight vertical wells. Proposed depth of future drilling is expected to be approximately 5,200 feet to 5,500 feet.
Barnett wells in the immediate area have been productive in the oil segment or phase of the Barnett shale that have justified the seismic study.
On March 1, EGPI Firecreek signed an agreement to sell off a portion of its oil and gas interests to Cubo Energy. Both companies are executing their Definitive Agreement and are moving ahead with plans for several future drilling programs.
Dennis Alexander, EGPI's CEO, stated, "Although we have been working on our relationship with Cubo Energy over the last several months, we have made significant progress over the last six weeks and are comfortable in moving ahead with the development of a strategic co-development plan for a multi-drilling program that will enable us to expand the breadth of our oil and gas division. This partnership will limit our personal financial exposure while having the advantage of utilizing two separate oil and gas management teams that will have an overall focus on the success of our specific projects."