Yesterday after the closing bell, FormCap Corp. announced that it has increased its acreage position in the Permian Basin by approximately 1,000 gross acres to 5,800 acres of oil & gas leases, all with primary terms of five (5) years. Together with the original 4,800 acres, these leases comprise the Weber City Prospect located in Curry County, New Mexico, which lies on the eastern most side of New Mexico bordering the State of Texas. The new leases are part of an on-going acquisition plan currently in progress in New Mexico.
The Weber City Prospect is strategically positioned in the Permian Basin. A prolific area that has produced more than 35 billion barrels of oil and 100 trillion cubic feet of gas, the Permian Basin is host to over 20 percent of all domestic oil and gas produced in the US. Recent M&A activity in the Permian Basin underscores the growing importance of this historically prolific, domestic source of energy. The area’s development history and stable, long-life production is one of the main reasons FormCap chose the Weber City Prospect acreage.
The company anticipates drilling an initial 7,000 foot well to test four potentially productive hydrocarbon zones; the San Andres, Clearfork, Wolfcamp and Cisco formations. Over 100 wells (based on 40 acre spacing) could be drilled on the Prospect and it is estimated that these leases could contain more than 220 million barrels of oil in a successful case.
“As part of our long-term strategy, FormCap is continuing to secure additional acreage in the Weber City Prospect area. We are also actively pursuing and evaluating other potential acquisitions for the Company,” stated Graham Douglas, FormCap’s President & CEO.
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