FormCap Corp., a budding developer of oil and gas properties within the Continental United States – with a complement of some of the finest exploration people in the business today – is poised to make big returns via its foothold in the Permian Basin.
In possession of some 4,900 acres of oil and gas leases on prime property in the Permian Basin region, collectively known as the Weber City Prospect, FRMC is ideally situated to exploit the abundant reserves for which the region is known.
The Prospect, located in Curry County, New Mexico, is well defined thanks to well log, seismic, Landsat and geological data generated by FRMC’s experienced exploration team, led by Chief Geologist, Thomas Markham.
With excellent access to all four of the main hydrocarbon formations in the Permian Basin, an area abundant in oil shows and characterized by stable, shallow decline reserves with markedly long life spans, FRMC is able to harvest the vast resources of the Cisco, Clearfork, Wolfcamp, and San Andres formations.
Accounting for 20% of all domestic U.S. oil and gas extraction, the Permian Basin has produced in excess of 35 Bbbl (billion barrels of oil) and 100 trillion cubic feet of gas.
The region is so rich, in fact, that some 1,300 reservoirs (1k in Texas and 300 in New Mexico) were identified as having production ceilings of 1 million barrels of oil each through 2000, in a joint 2003 report conducted by the Bureau of Economic Geology and the New Mexico Bureau of Geology and Mineral Resources.
A closer look at the Permian Basin reveals even more tantalizing details: the reservoirs in the Permian Basin all come from organic material deposited during the majority of the Paleozoic era, which generated incredible amounts of plant and animal life, ending with the largest mass extinction event in the history of the planet.
This sequence of events led to the development of a multitude of highly porous pockets in the Permian and Pennsylvanian limestone sedimentary layers, the remnants of ancient, warm and shallow seas teeming with marine organisms.
The Cisco formation, the main focus of the Prospect, is a perfect example of such a marine formation, which created a natural reservoir and was then capped off by thick Ochoan (a stage in the Permian layer) evaporate sections. In fact, the Cisco formation is an ideal example of source, reservoir and trap distribution.
Only 28% of the potential reserves have been developed to date (30 Bbbl) in the Texas portion of the Permian Basin, a small fraction of the roughly 106 Bbbl of original oil in place (OOIP).
Let us hear your thoughts: FormCap Corp. Message Board