FormCap Corp. (“FormCap” or “the Company”) (OTCQB: FRMC) announced today
that it has made a payment in the amount of US$75,000.00 to Keta Oil &
Gas and Kerr Energy pursuant to the purchase of oil and gas exploration
and development leases in Cowley County Kansas. Formcap will pay Kerr
and Keta two hundred dollars ($200.00) per acre for up to 2400 acres of
Leases, at a cost not to exceed a total of four hundred and eighty
thousand dollars ($480,000) (the “Purchase Price”) unless agreed
otherwise by the Company.
FormCap has paid Kerr and Keta two hundred thousand dollars ($200,000)
to February 6, 2014. Formcap is currently evaluating a specific block of
875 acres (from the 2400 acre total) of prospective oil leases to
acquire from Kerr and Keta. 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.
Copyright Business Wire 2014