BlueFire Equipment Corp. (OTC:BLFR) Stock Gains Momentum: Here is Why

BlueFire Equipment Corp. (OTC:BLFR) is one of the companies that may be on the radars of investors this morning in light of the developments from last Friday. At the time, the company made a key announcement with regards to Screaming Eagle Partners LLC, its 90%-owned subsidiary unit.

It was revealed that Screaming Eagle had successfully executed a Joint Operating Agreement (JOA) and a Participation Agreement (PA) with the firm Resource Rock Exploration LLC. Both agreements had been executed by the company in the same week in which it inked a letter of intent with the firm Wilcox International Holdings LLC. It was further noted that Screaming Eagle was working on the finalization of a joint venture agreement with Wilcox.

Kirk Yariger, the Chairman of the Board comments, “we are honored to have finally executed the partnership with Resource Rock and eager to begin developing the Bedias Creek and Gin Creek South assets. Resource Rock’s expertise gives us additional capacity to increase the Company’s Enterprise value through organic production growth on our currently held asset while executing strategic acquisitions at fair evaluations.”

Following the signing of the PA and JOA, Resource Rock would get a 12.5% interest in the Gin Creek South and Bedias Creek assets. Screaming Eagle would end up with 77.5% interest in the rest following the deal, and it would also get cash compensation from Resource Rock. In the news release, it was further noted that Resource Rock had a strong track record in the building of thriving exploration and production companies. The operational expertise and experience of Resource Rock would help Screaming Eagle boost its production.

Additionally, it would also help Screaming Eagle secure a loan from exploration and production banks based on its reserves. The company would then have the necessary capital to grow its daily production levels exponentially by way of new wells as well as workovers. The chairman of the BlueFire Equipment Board, Kirk Yariger, spoke about the latest development as well. He noted that everyone at the company was honored to have eventually agreed to the partnership deal with Resource Rock. He went on to note that the company was eager to start work on the development of the two properties.