"Proceeds Provided Complete Acquisition of 2400 Acres and Drill Two
Wells"
RENO, NV, Feb. 26, 2014 /PRNewswire/ - FormCap Corp. ("FormCap" or "the
Company") (OTCQB: FRMC) announced today that it has settled $672,000
in debt and trade payables, removing these obligations from its balance
sheet, in exchange for the issuance of shares of its common stock to
Ironridge Global IV, Ltd. ("Ironridge"), an institutional investor
specializing in direct equity investments in oil and gas development
companies. Ironridge previously purchased certain debts of the Company
held by third party creditors, which make up the amount settled.
Graham Douglas, CEO of FormCap reports that "FormCap is excited about
closing this financing with Ironridge and is excited to proceed on the
final acquisition of the 2400 acres of prospective oil and gas leases
in Cowley County, Kansas". The Company, its partners Kerr and Keta,
technical advisors and operator will immediately map out decisions on
drill site locations with an anticipated first drill during Q2-2014.
"There are tremendous oil and gas opportunities to produce commercial
light oil and gas in an environment of high crude oil prices and low
finding and developing costs."
FormCap has paid Kerr and Keta one hundred and seventy-five thousand
dollars ($175,000) to February 26, 2014 to be applied towards the
purchase of 875 acres with the balance of $305,000 to be paid directly
by Ironridge to Kerr and Keta as per debt settlement agreement dated
February 21, 2014. Upon closing FormCap will have acquired a total of
2400 acres of prospective oil and gas leases for a total cost of four
hundred and eighty thousand dollars ($480,000) from Kerr and Keta and
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.
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.
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'
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.
SOURCE FormCap Corp.