FORMCAP CORP (PINKSHEETS:FRMC) announced today that it has entered into an Option Agreement with Morgan Creek Energy Corp. to acquire up to a 50% Working Interest (40.75% Net Revenue Interest) in Morgan Creeks´ approximately 13,000 acre entire Frio Draw Prospect located in Curry County, New Mexico. Under the terms of the agreement, FormCap is required to drill and complete two mutually defined targets on the acreage to earn its interest. Following the initial two wells, Morgan Creeks´ management and land team will work with FormCap to establish additional targets on the Frio draw based on technical data and drill results. The two companies will jointly fund additional targets and have committed to a minimum five hole drill program in order to effectively test the Frio Draw.
“This is a very exciting prospect. It is in a well established formation, the San Andres, which should provide FormCap with a relatively low risk opportunity. In addition, Morgan Creek’s management team brings exceptional expertise and knowledge of this prospect, which we believe will increase our possibility of success”, stated Graham Douglas, FormCap’s President & CEO.