BlueFire Equipment Corp (BLFR) Enters into a Binding Letter Agreement with Resource Rock Exploration, LLC. to Increase Oil Production

Rhea-AI Summary

BlueFire Equipment Corp. enters into a binding Letter Agreement with Resource Rock Exploration to increase oil production. Resource Rock will hold a 12.5% interest in the assets, while Screaming Eagle Partners will have 77.5%. Resource Rock received $450,000 in cash compensation and committed $1,000,000 for workovers and recompletions on wells owned by Screaming Eagle. The partnership aims to secure reserve-based loans, obtain investment capital, and achieve 10,000 bbls/day of sustained production by 2024.

Positive

• BlueFire Equipment Corp. forms a partnership with Resource Rock Exploration to increase oil production. The partnership aims to achieve 10,000 bbls/day of sustained production by year end 2024, which could positively impact the stock price. Resource Rock will hold a 12.5% interest in the assets, indicating potential future revenue for BlueFire Equipment Corp. Additionally, the partnership received a commitment of $1,000,000 for workovers and recompletions on wells, which could further enhance production and profitability.

Negative

• None.

Woodlands, TX., Oct. 26, 2023 (GLOBE NEWSWIRE) -- BlueFire Equipment Corp. (OTC: BLFR) (“BLFR” or the “Company”), a specialist in emerging industry acquisitions, enters into a binding Letter Agreement with Resource Rock Exploration, LLC. (“Resource Rock”) to increase oil production as part of the six month plan mentioned during the third week of October 2023.

Who is Resource Rock:

Resource Rock was a Kayne Anderson portfolio company with a financial commitment from Kayne Anderson Energy Fund VII and Fund VIII for $100 million, respectively. Resource Rock, based in Houston, TX, is focused on acquiring and developing oil and gas properties. Founded in 2017 by Charles Wampler and Stewart Delcambre, the founders have grown the company over a short time to include highly skilled professionals with a broad skillset to support in developing oil and gas assets.

The Binding Letter Agreement:

Resource Rock will hold a 12.5% interest of the Bedias Creek and Gin Creek South assets, leaving Screaming Eagle Partners, LLC. (“Screaming Eagle”) with 77.5%. Screaming Eagle received $450,000 in cash compensation for the 12.5% interest obtained by Resource Rock with an additional $1,000,000 commitment to fund workovers and recompletions on wells owned by Screaming Eagle with an additional $1,650,000 if elected to do so. Resource Rock’s trail of success and operational expertise will greatly enhance the ability of Screaming Eagle to secure reserve-based loans from exploration & production banks, obtain additional investment capital needed to increase production, and close key acquisitions necessary for Screaming Eagle to strategically acheive its vision of no less than 10,000 bbls/day of sustained production by year end 2024.

Furthermore, Screaming Eagle and Resource shall negotiate a Joint Operating Agreement for the opearation of assets on or before November 3, 2023.

About BlueFire Equipment Corp. (BLFR)

BLFR, after its first acquisitions in the oil and gas industry Screaming Eagle Partners, LLC. operating in the state of Texas, has rapidly gained traction and momentum which has propelled its growth and focus on increasing its acquisitions within the energy secter.

SAFE HARBOR ACT: Forward-looking statements are included within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding the Company’s expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operatiosn or listing on an exchange — including words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will” and other similar expressions — are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond the Company’s control and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. No information in this press release should be construed in any manner whatsoever as an indication of the future performance of the Company’s revenues, financial condition or stock price.

Company Contact:

Nickolas S. Tabraue
Interim CEO, Chief Compliance and Investor Relations Officer, and Director of the Board
info@BLFR.info
Phone (786) 375-7281

FAQ

Who is Resource Rock?

Resource Rock is a company focused on acquiring and developing oil and gas properties. It was founded in 2017 by Charles Wampler and Stewart Delcambre and has received financial commitments from Kayne Anderson Energy Fund VII and Fund VIII.

What is the Letter Agreement between BlueFire Equipment Corp. and Resource Rock Exploration?

The Letter Agreement states that Resource Rock will hold a 12.5% interest in the Bedias Creek and Gin Creek South assets, while Screaming Eagle Partners will have 77.5%. Resource Rock received $450,000 in cash compensation and committed $1,000,000 for workovers and recompletions on wells owned by Screaming Eagle.

What are the goals of the partnership?

The partnership aims to secure reserve-based loans, obtain additional investment capital, and achieve a sustained production rate of 10,000 bbls/day by year end 2024.

How could this partnership impact BlueFire Equipment Corp.'s stock price?

The partnership with Resource Rock could positively impact the stock price, as it indicates potential future revenue and enhanced production capabilities for BlueFire Equipment Corp.