Provides Additional Company Updates
JACKSBORO, Texas, June 27, 2024 (GLOBE NEWSWIRE) -- Formation Minerals, Inc. (OTCQB: FOMI) (“Formation” or the “Company”), a growing oil and gas company with a focus on the acquisition and management of oil and gas minerals and royalties, today announced that it has entered into a purchase and sale agreement with a private seller to acquire certain producing mineral interests in Bienville Parish, Louisiana for $220,000 in cash. The acquisition is subject to customary closing conditions, including the receipt of adequate financing, and is expected to close on or about July 26, 2024. Pursuant to the terms of the agreement, Formation is entitled to the cash flow from oil and gas production attributable to the property beginning July 1, 2024. The Company is working to secure the requisite financing to complete this acquisition.
The property is located in the Haynesville Shale and is currently operated by Texas based Aethon Energy Management LLC (“Aethon”). There are currently 3 producing oil wells and pre-permits have been filed for an additional 6-9 oil wells. Aethon is a leading Haynesville natural gas company which is currently running multiple oil rigs and wells in the area. Aethon is currently drilling in the immediate area and testing 2 to 3 mile laterals to ensure maximum production from the wells. The Haynesville Shale is a massive dry natural gas formation in East Texas and Northwest Louisiana which was discovered in 2008.
Scott Cox, President and Chief Executive Officer of Formation, said, “With less than two months post-closing of the Verde Bio Holdings acquisition, we are delighted to announce our first move toward building Formation’s portfolio. This acquisition is located in the active heart of the Haynesville Shale. The wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage. We have great confidence both in Aethon as an operator and in these assets and we look forward to jointly benefiting as they continue to operate and develop the area. We have been and continue to be diligent in buying properties at the right price and in the right areas, thus we believe the Company and its investors will reap the benefits of the rise in commodity pricing, as well as the continued development of our acreage. We are excited to continue executing our business plan and grow the Company and its revenues. We believe this business model to be extremely lucrative and viable given the sector now has over $30 billion in value and continues to grow.”
Additional Company Updates
As previously announced, Formation’s well count continues to rise. Since the closing of the Verde acquisition, the Company has received notice that now over ten new wells are in the process of being brought online in Formation’s oil and gas properties. The new wells and new development assets are located on the Company’s Permian Basin and Haynesville Shales properties which add concrete, new oil and gas development assets to the Company’s portfolio.
“The Company continues to actively evaluate a number of potential acquisitions as we continue to execute on our business plan, including raising responsible capital to deploy into strategic and accretive acquisitions for our existing portfolio, to maximize stockholder value. We recently completed two capital raises, raising gross proceeds of approximately $160,000, with the potential for an additional $200,000. Additionally, we expect to continue to pursue other strategic funding opportunities, including a possible uplisting to a national securities exchange,” concluded Mr. Cox.
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company based in Jacksboro, Texas, engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The Company’s growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of high quality revenue producing royalty interests and strategic and active management of our portfolios.
Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, Formation’s expectations regarding the pending acquisition and the timing of closing and the receipt of requisite financing, if at all, the performance of the assets post-acquisition, our portfolio, the divestiture out-of-favor assets and acquisition of better performing royalty properties, execution of Formation’s business plan and the expectations regarding Formation’s ability to raise capital and maximize stockholder value. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of Formation’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) Formation’s ability to execute its acquisition and disposition strategy and grow and manage growth profitability and retain its key employees; (ii) the ability to maintain the listing of its common stock on the OTCQB; (iii) the risk that we are not able to maintain and enhance its brand and reputation in its marketplace, adversely affecting Formation’s business, financial condition and results of operations; (iv) the risk that periods of rapid growth and expansion could place a significant strain on Formation’s resources, including its employee base, which could negatively impact Formation’s operating results; (v) the risk that Formation may never achieve or sustain profitability; (vi) the risk that Formation may need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; and (vii) other risks and uncertainties indicated from time to time in the its Registration Statement on Form S-4, as amended (the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”) in connection with the recently completed merger. The foregoing list of factors is not exhaustive. There may be additional risks that Formation does not know or that Formation currently believes to be immaterial that could also cause results to differ from those contained in any forward-looking statements. Recipients should carefully consider such factors and the other risks and uncertainties described in the “Risk Factors” section of the Registration Statement on Form S-4, as amended, and the periodic reports and other documents filed or to be filed by Formation from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Formation assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Formation does not give any assurance that Formation will achieve its expectations.
Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
