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FormCap Corp. Targets Four Historically Productive Hydrocarbon Zones in Permian Basin
FormCap Corp. Proposes Seismic Survey to Confirm Permian Basin Drill Targets
Dec 3, 2010 9:30:00 AM
RENO, NV -- (MARKET WIRE) -- 12/03/10 -- FormCap Corp. (PINKSHEETS: FRMC), an emerging oil & gas exploration company that is primarily focused on the development of its oil & gas properties in the continental United States, is pleased to announce that it plans to initiate a seismic survey to confirm drill targets at its Weber City Prospect, Curry County, New Mexico. To date, the Company has assembled 5,800 gross acres of oil and gas mineral leases within the Permian Basin at its Weber City Prospect, where it holds a 100% working interest (80% net revenue interest.) For more information on the Weber City Prospect, please see: www.formcapcorp.com
Mr. Terry R. Fields, President and CEO stated, "The Permian Basin is one of the most prolific oil and gas producing regions in the United States, and with its development history and stable, long-life, shallow decline reserves, is a strong prospect for petroleum exploration companies. The geological events that occurred along the eastern border of New Mexico and west Texas contributed to the deposition of thick, organically rich source beds and excellent reservoirs for the trapping of oil and gas, and created the major petroleum reserves of the Permian Basin. The geological structure of the Weber City Prospect is similar to that of historically productive fields, like the Anton Irish Field, and as such, could be indicative of a large hydrocarbon resource in a successful case."
The four potentially productive hydrocarbon zones that comprise the Weber City Prospect include the San Andres, Clearfork, Wolfcamp and the Cisco Formation. In Management's opinion, each of these four zones represents a viable drill target. FormCap's primary target in the four zones is the Cisco Formation of Pennsylvanian Age, a structure that has hosted extensive deposits of hydrocarbons. Detailed mapping, Landsat imagery, seismic analysis and log evaluation outlines a major, combination stratigraphic, structural trap on the Weber City Prospect, as is the case in the existing "Anton Irish" field.
The Cisco Formation is primarily marine limestone and shales, with the reservoir developed in limestone sequences. During deposition, the Pennsylvanian seas were relatively shallow and warm or tropical. At the same time in this area of the Permian Basin, an incipient basin margin started to develop. Associated with this development, structures evolved on the Pennsylvanian seafloor. Upon these structures, patch reefs began to grow. As the Pennsylvanian sea deepened, the reefs grew vertically in an attempt to stay close to the surface and most critically within the photic or sunlight zone. A major regression or withdrawal of the seas, ended reef deposition, which, by leaving the reefs exposed, led to development of excellent porosity and permeability. Several of these Pennsylvanian Reef reservoirs are giant oil traps, producing over a billion barrels of oil in the Permian Basin. The Weber City Prospect hosts a similar type of oil trap.
In Management's opinion, detailed geological information on the Weber City Prospect suggests that the possibility is present for significant hydrocarbon potential. In light of successful exploration programs conducted by others in the immediate area, which are situated in a similar geological setting, Management believes that, in a successful case, there is potential to drill up to 100 wells that could produce over 300 million barrels of oil on the Company's Weber City Prospect.
Recent drilling reports show that exploration interest in the Permian Basin from major O&G exploration companies has risen dramatically. Permit applications approved by the Texas Railroad commission show that many of the major oil companies are investing substantial capital resources in Permian Basin mineral leases, which include Anadarko, Apache, Chevron, Conoco-Phillips, Devon Energy, Kinder Morgan, and Mobil and Exxon, to list a few. In December 2009, Exxon Mobil paid $31 billion to repurchase Permian Basin assets previously sold to XTO Energy. This is a testament to the area's rich oil and gas potential, just as it begins to become more challenging to find inexpensive, US-friendly sources of petroleum.
FormCap's management team is led by President and CEO Terry R. Fields and a diverse and experienced team of consultants and advisors. FormCap has engaged, Mr. Thomas Markham, the prospect generator as Senior Consulting Geologist; and Nueva Energy Inc. headed by Norman Mackenzie as Operator. The Company plans to acquire existing production that holds additional development potential. FormCap is currently investigating several prospects that meet this profile and will report such acquisitions when appropriate.
About FormCap Corp.
FormCap Corp. a reporting issuer that is listed on the Pink Sheets under the symbol: FRMC.PK, is an emerging exploration and development company in the oil & gas sector. FormCap's mandate is to seek out highly prospective oil and gas properties for acquisition, exploration and development. FormCap's primary focus is the discovery and development of oil and gas in the continental United States. To date, the Company has assembled 5,800 gross acres of oil and gas mineral leases at its Weber City Prospect, located in Curry County, New Mexico. The Weber City Prospect has been defined by detailed geological information; well log data, seismic, Landsat and independent third party geological interpretation. There is potential to drill up to 100 wells estimated to produce over 300 million barrels of oil in a successful case.
Safe-Harbor Statement
Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
FormCap Contact
Investor Relations:
Mr. Larry Davis
1 250 595 7714
info@formcapcorp.com
Source: FormCap Corp.
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