The news was not really a material event - the Letter Of Intent only presents a serious consideration, but not an obligation to really follow with the acquisition. Another matter is, despite EGPI's CEO talking about growth and expansion, the deal looks more like a reverse merger.
EGPI had no revenues or cash at the end of 20009. Although not registered as one, the company resembles a public shell. According to the official announcement, the target of the planned acquisition, Oil Service Company, has a 40 year history of operations and at least $6 million worth of assets backed by millions in annual revenues and a positive bottom line.
With short lived spikes in share price, EFIR carries a notorious history of losing share price value. The last steady decline, since September 2009, accounts for an 87% value loss to date.