Cubo Energy Enters Permian Project With EGPI Firecreek

To acquire 37.5% WI in 3 oil wells in TX Permian Basin on North 40 acreage of J.B. Tubb Leasehold Estate.

U.K.-based Cubo Energy Plc plans to acquire 37.5% working interest (28.125% net revenue interest) in three oil wells in the Texas Permian Basin from EGPI Firecreek Inc., Scottsdale, Ariz., (OTCBB: EFIR) for US$1.15 million in stock.

The interest includes three Crawar #2 oil wells on the North 40 acreage of the J.B. Tubb Leasehold Estate. The agreement also calls for additional $4.5 million in 2012 capex for new drilling and joint development on a best efforts basis for the Tubb South 40 acreage interests. Cubo on an earn-in basis, will finance the production of an initial Ellenburger well to a depth of 8,300 feet.

Capex for the proposed Ellenburger is $1.575 million. Cubo has also agreed on a best efforts basis to finance drilling programs for two additional wells with several additional potential drilling targets available for development on the South 40 acreage of the J.B. Tubb Leasehold Estate. The strategic joint parties of EGPI Firecreek, Cubo and Success Oil (EGPI’s partner and operator) look forward to pursuing the new drilling program on the South 40 and further remedation programs in the North 40.

The following formations are currently available for oil and gas drilling considerations in the South 40 acreage: Glorietta, Upper Clearfork, Tubbs, Lower Clearfork, Witchita Albany, Wolfcamp, Detrital Zone, Waddell.