Reno, Nevada--(Newsfile Corp. - November 18, 2013) - FormCap Corp. (OTCQB: FRMC) ("FormCap" or "the
Company") today announced that due diligence is ongoing to acquire
up to 1500 acres of prospective oil leases (the "Leases") in Cowley County,
Kansas. As per terms of the Definitive Agreement (the "Agreement") executed Sept
30, 2013 the Company has now paid Kerr Energy and Keta Oil & Gas ("Kerr" and
"Keta") the deposit in the amount of $75,000 (the "Deposit") that will be
applied to the purchase price of the Cowley Leases to be acquired by FormCap
under the Agreement. The Company also issued Kerr and Keta a total of 200,000
Rule 144 shares of FormCap pursuant to the terms of the Agreement.
There are four significant oil and gas fields located Townships
30 and 31S, the Atlanta; Burden; Eastman and Combs Fields. These fields
collectively have cumulative production of over 9 million barrels of oil.
FormCap will pay Kerr and Keta two hundred dollars ($200.00)
per acre for up to 1,500 acres of Leases, at total cost not to exceed three
hundred thousand dollars ($300,000) (the "Purchase Price") unless agreed
otherwise by the Company. FormCap will own 100% of the Leases (80% net revenue
to FormCap; 20% freehold royalty), and will be operator. FormCap will have the
option to purchase additional leases in Cowley County from Kerr and Keta under
an Area of Mutual Interest ("AMI"), the terms of which are set forth in the
Agreement. FormCap is required to drill one (1) well in each of the first two
(2) years of the Lease term to maintain its interest in the Leases.
FormCap will also have the option to participate in the
drilling of up to six (6) exploration or development wells on lands currently
owned by Keta and Kerr under terms set forth in the Agreement .
Significant quantities of oil and gas have been discovered and
produced in Cowley County in recent years. The prospects for oil production are
excellent with multi-zone potential for both vertical and horizontal
development. In addition to the Mississippian, zones producing in this area include the Layton, Lansing-Kansas City, Bartlesville,
Stalnaker and the Arbuckle. Reservoir properties are excellent with good
porosity and permeability in thicker accumulations of hydrocarbons. Total depths
of approximately 4,000 feet provide drilling time of approximately seven (7)
days with completed wells costing about $500,000 per vertical well.
FormCap is actively engaged in identifying, financing and
developing oil and gas energy resource properties in North America, including
the development of the Cowley County, Kansas, Mississippi Prospect in Kansas.
FormCap continues to review additional resource properties that combine positive
elements of short-term exploration and development costs with high potential for
long-term success and financial return.
Graham Douglas, CEO of FormCap reports that "FormCap is excited
about the potential of its relationship with Kerr and Keta in Cowley County,
Kansas as there are tremendous opportunities to produce commercial light oil and
gas in an environment of high crude oil prices and low finding and developing
costs."
Additional information can be found at the Company website:
www.formcapcorp.com
On behalf of the Board of Directors,
FormCap Corp. (OTCQB:
FRMC)
Signed: 'Graham Douglas'
Graham Douglas, CEO
FormCap Corp.
50 West Liberty Street,
Suite 880
Reno, NV 89501
T: +1(775) 285-5775
F: +1(775)
285-5776
info@formcapcorp.com
Forward-Looking Information
This press release contains certain "forward-looking
information". All statements, other than statements of historical fact, that
address activities, events or development that the Company believes, expects or
anticipates will or may occur in the future constitute forward-looking
information. This forward-looking information reflects the current expectations
or beliefs of the company based on information currently available to the
Company. Forward-looking information is subject to a number of significant risks
and uncertainties and other factors that may cause the actual results of the
Company to differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or substantially
realized, there can be no assurance that they will have the expected
consequences to, or effects on the Company. Factors that could cause actual
results or events to differ materially from current expectations include, but
are not limited to, the possibility of unanticipated costs and expenses. Any
forward-looking information speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the company disclaims
any intent or obligation to update any forward-looking information whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty
therein.
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