Force Fuels Inc. is an energy company focused on the purchase of oil leases with the potential for additional drilling in proven producing areas. Along those lines, the company announced today that it has signed a contract with PEMCO LLC of Oklahoma for the purchase of 13 oil and gas mineral leases in Kansas.
The leases are in Chautauqua and Montgomery County on the southern end of Kansas. This area is a well-known oil and gas producing area where several prolific reservoirs are present. Comprising over 2,600 acres, the leases have 54 existing oil and gas wells with all the necessary equipment to commence production. Preliminary estimates put the recoverable oil reserves at 13 million barrels.
Force Fuels’ director, Tom Hemingway, commented on the purchase, “This acquisition represents a significant increase in the company’s asset value. With 2.5 acre well spacing, allowance in-field development and exploratory drilling will permit the company to exploit these reserves quickly and efficiently.”
The acquisition will provide significant cash flow and future development opportunities for additional oil and gas reserves for the company. The company is planning to aggressively pursue the increase of reportable proven reserves in the fields through the strategic placement of new oil wells. Reportable proven reserves will depend on geologists’ reports on areas that are currently producing. This transaction is just the first step in the implementation of Force Fuels’ strategy of becoming a full-fledged energy company.