FormCap Corp, an emerging junior in the oil and gas sector, recently acquired strategically positioned acreage located in the Permian Basin. This prolific area has produced over 35 billion barrels of oil and 100 trillion cubic feet of gas, and is host to more than 20 percent of all domestic oil and gas produced in the US.
Exxon Mobil recently bought XTO Energy for $31 billion, which was the largest U.S. energy takeover since Houston-based Conoco-Phillips acquired Burlington Resources. This acquisition was made largely in part for XTO’s significant Permian Basin assets. Soon after Exxon’s takeover of XTO, a Bloomberg article on December 14th, 2009, reported that the Exxon acquisition may have signaled a wave of new acquisitions referencing Occidental Petroleum’s purchase of Plains Exploration & Production’s interest in the Permian Basin of West Texas and New Mexico, as well as their Piceance Basin assets of Colorado for $1.25 billion. Additionally, SandRidge Energy recently acquired Forest Oil’s Permian Basin assets for $800 million. The Permian Basin’s development history and stable, long-life production is one of the main reasons FormCap secured the Weber City Prospect acreage.
FormCap currently holds 100% Working Interest (80% Net Revenue Interest) in the 4,900 acre Weber City Prospect located in Curry County, New Mexico. These leases have been assigned and are duly recorded with initial 5 year terms. Having completed its registration to conduct business in the State of New Mexico, the company is in the process of establishing itself as Operator.
FormCap plans to drill an initial 7,000 foot well to test four potentially productive hydrocarbon zones; the San Andres, Clearfork, Wolfcamp and Cisco formations. Approximately 100 wells (based on 40 acre spacing) could be drilled on the Prospect. It is anticipated that these leases could contain more than 220 million barrels of oil in a successful case. In conclusion, the company told investors that it is making its 15c-211 filing for listing on the Over-the-Counter Bulletin Board (OTCBB).
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