Category Archives: FormCap Corp. FRMC

FormCap Corp. (FRMC.PK) to Attain Bonded Operator Status in New Mexico

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FormCap Corp. announced yesterday that it is establishing itself as a Bonded Operator in the State of New Mexico in anticipation of its first proposed well on the Weber City Prospect located in Curry County, New Mexico. The company holds 100% Working Interest in approximately 5,800 gross acres of oil & gas leases in the Permian Basin, all with primary terms of five (5) years. The Company’s operational partner, led by Calgary based Norman Mackenzie, has confirmed that the technical team is completing its deliberations and an initial well will be proposed soon.

The Weber City Prospect is strategically positioned in the Permian Basin. A prolific area that has produced over 35 billion barrels of oil and 100 trillion cubic feet of gas, and is host to over 20 percent of all domestic oil and gas produced in the US, the Permian Basin’s development history and stable, long-life production is one of the main reasons FormCap has secured the Weber City Prospect acreage and continues to expand its holdings. FormCap plans to drill wells to test four potentially productive hydrocarbon zones; the San Andres, Clearfork, Wolfcamp and Cisco formations. According to the company, over 125 wells (based on 40 acre spacing) could be drilled on the Prospect.

“As a Bonded Operator in New Mexico, FormCap will more fully control operations and production from our successful wells on the Weber City Prospect. This will minimize operational costs and maximize our profits over the long term,” stated Graham Douglas, FormCap’s President & CEO.

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FormCap Corp. (FRMC.PK) to Raise $1 Million in Private Placement

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FormCap Corp. was pleased to announce today a Private Placement of up to 3.5 million units at $0.30 per unit for gross proceeds of $1,050,000. According to the terms, each unit will consist of one common share and one share purchase warrant.

Purchase warrants will entitle the holder to purchase one additional common share at $0.35 per share, but will expire two years after the date of issuance. Shares and warrants are subject to restrictions under Rule 144.

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FormCap Corp. (FRMC.PK) Announces Launch of Comprehensive Exploration Program

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Today after the closing bell, FormCap Corp. announced that its technical team is initiating a comprehensive and systematic strategy to explore for oil and gas at the company’s Weber City Prospect. The six member multi-disciplined technical team, assembled by FormCap’s Calgary based operational partner, will utilize the most advanced technology available to delineate drill targets, as well as to determine the size and scope of the initial seismic and geophysical program.

According to the press release, the members of this team have a combine experience of 150+ years in the oil and gas exploration and development industry. The team includes in-house professionals and technical consultants with the expertise necessary to complete any action for the prudent and timely exploration and development of FormCap’s Weber City Prospect.

As announced previously, FormCap has increased its land position in the Permian Basin prospect to approximately 5,800 gross acres of oil & gas leases, all with primary terms of five years. The Permian Basin is a prolific area that has produced more than 35 billion barrels of oil and 100 trillion cubic feet of gas, and is host to over 20 percent of all domestic oil and gas produced in the US.

The basin’s development history and stable, long-life production is one of the main reasons FormCap has secured the Weber City Prospect acreage and continues to increase its holdings. The company plans to drill initial wells to test four potentially productive hydrocarbon zones; the San Andres, Clearfork, Wolfcamp and Cisco formations. Formcap believes it has sufficient land cover to fully develop discoveries on 40 acre spacing.

Graham Douglas, FormCap’s President and CEO, stated, “Mr. Mackenzie’s is committed to using highly experienced and technically capable professionals to develop the Weber City Prospect. It is our belief that this will maximize our probability for long term success and growth.”

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FormCap Corp.’s (FRMC.PK) Recent Consulting Agreement to Develop Weber City Prospect

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FormCap Corp. recently announced that it had entered into a consulting and option agreement with Mr. Norman Mackenzie of Calgary, Alberta, Canada to develop and execute the drilling and development plan for the company’s Weber City Prospect. The Weber City Prospect consists of approximately 5,800 acres, with room for over 120 well locations, that are strategically positioned in the Permian Basin.

The Permian Basin is well known to US oil and gas investors. It is a prolific area, located in Texas and New Mexico, that has produced over 35 billion barrels of oil and 100 trillion cubic feet of natural gas. Many reservoirs within the Permian Basin have production levels of over 1 million barrels of oil. Overall, the Permian Basin is the source of over 20 percent of all domestic oil and gas production.

Mr. Mackenzie has over 30 years experience in the energy industry with companies that have developed significant energy projects in the North Sea (UK and Norway), Abu Dhabi, Dubai, Egypt, Libya, Bangladesh and China. He is also currently the founder and chairman of C&C Energy Canada LTD., which is involved in oil and gas exploration in Columbia. These assets are currently capable of producing over 5,000 barrels of oil per day.

Companies that Mr. Mackenzie has been associated with have been at the leading edge of technology in all sectors of the oil and gas business. His expertise and that of his team will be used to develop a strategic plan for the development of FormCap’s Weber City Prospect. The plan will include the scope of seismic surveys, the delineation of multiple drill targets and access to capital to assist in the exploration of the company’s leases.

Formcap’s president Graham Douglas said, “Mr. Mackenzie and his team bring an extremely high level of expertise to FormCap’s exploration and development plan for Weber City Prospect. The fact that he negotiated for rights to financially participate in the development of this prospect further supports our contention that it is a high quality opportunity.”

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FormCap Corp. (FRMC.PK) Expands Acreage in New Mexico

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Yesterday after the closing bell, FormCap Corp. announced that it has increased its acreage position in the Permian Basin by approximately 1,000 gross acres to 5,800 acres of oil & gas leases, all with primary terms of five (5) years. Together with the original 4,800 acres, these leases comprise the Weber City Prospect located in Curry County, New Mexico, which lies on the eastern most side of New Mexico bordering the State of Texas. The new leases are part of an on-going acquisition plan currently in progress in New Mexico.

The Weber City Prospect is strategically positioned in the Permian Basin. A prolific area that has produced more than 35 billion barrels of oil and 100 trillion cubic feet of gas, the Permian Basin is host to over 20 percent of all domestic oil and gas produced in the US. Recent M&A activity in the Permian Basin underscores the growing importance of this historically prolific, domestic source of energy. The area’s development history and stable, long-life production is one of the main reasons FormCap chose the Weber City Prospect acreage.

The company anticipates drilling an initial 7,000 foot well to test four potentially productive hydrocarbon zones; the San Andres, Clearfork, Wolfcamp and Cisco formations. Over 100 wells (based on 40 acre spacing) could be drilled on the Prospect and it is estimated that these leases could contain more than 220 million barrels of oil in a successful case.

“As part of our long-term strategy, FormCap is continuing to secure additional acreage in the Weber City Prospect area. We are also actively pursuing and evaluating other potential acquisitions for the Company,” stated Graham Douglas, FormCap’s President & CEO.

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FormCap Corp. (FRMC.PK) Announces Operations and Farm-in Agreement with Mr. Mackenzie of Alberta

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Friday after the closing bell, FormCap Corp. was pleased to announce that it has entered into a Consulting and Option Agreement with Mr. Norman Mackenzie of Calgary, Alberta, Canada to develop and execute the drilling and development plan for the Weber City Prospect. Consisting of approximately 4,800 acres with room for 100+ well locations, the Weber City Prospect is strategically positioned in the Permian Basin, a prolific area that has produced more than 35 billion barrels of oil and 100 trillion cubic feet of gas.

Mr. Mackenzie has over three decades experience in the domestic and international energy industry with companies that have developed significant energy projects in the North Sea (UK and Norway), China, Abu Dhabi, Dubai, Egypt, Bangladesh and Libya. Currently, he is Chairman and Founder of C & C Energy Canada Ltd., which is engaged in oil and gas exploration in Colombia, South America. These assets are capable of producing over 5,000 BOPD.

Companies that Mr. Mackenzie has been associated with utilized cutting edge technology in all sectors of the oil & gas business. In 1992, Scimitar Hydrocarbons, a public company founded by Mr. Mackenzie, was merged with Rally Energy Corp., which was subsequently sold for over $900 million in 2003. For FormCap, Mr. Mackenzie and his team will develop a strategic development plan that will include the scope of seismic surveys, the delineation of multiple drill targets and access to capital to assist in the ultimate exploitation of the company’s leases.

“Mr. Mackenzie and his team bring an extremely high level of expertise to FormCap’s exploration and development plan for Weber City Prospect. The fact that he negotiated for rights to financially participate in the development of this Prospect further supports our contention that it is a high quality opportunity” stated Graham Douglas, FormCap’s President.

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FormCap Corp. (FRMC.PK) Has a Strong Foothold in the Permian Basin

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FormCap Corp. is a junior exploration and development company in the oil and gas sector. In October 2009, the company announced the acquisition of 4,900 acres of oil and gas leases, all with primary terms of five years, for a cost of only $250,000. The leases, together called the Weber City Prospect, are located in eastern New Mexico on the northern flank of the Permian Basin.

The Permian Basin is well known to oil and gas investors in the United States. It is one of the most prolific oil and gas producing areas of the entire world. Through the year 2000, approximately 1,300 reservoirs in the Permian Basin were identified as having cumulative production greater than one million barrels of oil. Cumulative production for this area so far is over 35 billion barrels of oil and 100 trillion cubic feet of gas. Overall, the Permian Basin is the source of over 20 percent of all domestic oil and production.

The Permian Basin, with its development history and stable, long-life, shallow decline reserves, is a strong bet for petroleum exploration companies. It is estimated that only about a third of the huge oil resource in the Permian Basin has been recovered. That is why even oil giants like ExxonMobil are moving quickly into the region.

Due to detailed mapping, Landsat imagery, seismic analysis and log evaluation, FormCap is confident of success for the Weber City Prospect. In addition, based on modeling of a nearby existing field (the Anton Irish field), well recoveries for FormCap’s prospect are expected to range from 100,000 to over 500,000 barrels of oil per well. With 40 acre spacing in the company’s prospect, there is room for approximately 100 wells.

Therefore, FormCap’s Weber City Prospect is estimated to contain potentially 220 million barrels of oil. The bottom line is that FormCap, with their Weber City Prospect, looks to be ideally situated to capitalize on a lucrative opportunity in the prolific Permian Basin.

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FormCap Corp. (FRMC.PK) Ideally Situated in the Prolific Oil Vicinity of the Permian Basin

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FormCap Corp. is an emerging junior company in the oil and gas sector. The company owns 4,900 acres – the Weber City Prospect – in the Permian Basin, an area well known for its hydrocarbon production. The Permian Basin has produced over 35 billion barrels of oil and 100 trillion cubic feet of gas. It is host to over 20 percent of all domestic oil and gas produced in the US.

The ‘smart’ money is investing into Permian Basin assets. For example, ExxonMobil (NYSE: XOM) is buying XTO Energy for $31 billion – the largest US energy takeover since Conoco-Phillips acquired Burlington Resources. The takeover occurred in large part due to XTO Energy’s large land position in the Permian Basin. Exxon was not alone in its interest in the Permian Basin. Other large energy companies acquiring assets in the Permian Basin include Occidental Petroleum and SandRidge Energy.

This takeover indicated a real shift in Exxon’s strategy and validated the independent exploration and production business model of smaller companies, like FormCap, which focus on the development of the Permian Basin areas of western Texas and eastern New Mexico as a key source of energy. The latest drill logs show that interest in the region is on the rise and that the Permian Basin is a hotbed of activity. Recent permit applications show that many other energy companies – Anadarko, Apache, Devon, Chevron and Kinder Morgan – are becoming involved in the area.

It appears that FormCap is ideally situated with their acreage in the Permian Basin. Based on modeling of a look-alike existing producing field – the Anton Irish field – well recoveries are expected to range from 100,000 to over 500,000 barrels of oil per well. Prospect wells are anticipated to flow at initial rates averaging 300 barrels per day, free of formation water. With 40 acre spacing in this prospect, there is room for approximately 100 wells.

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FormCap Corp. (FRMC.PK) – A Well-Positioned Emerging Oil Company

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Oil is becoming not only harder to find but also much more costly to extract. That is why domestic, onshore oil fields like the Permian Basin – where cumulative production is over 35 billion barrels of oil and 100 trillion cubic feet of gas – are so vitally important and attractive to US producers. FormCap is a company well positioned to achieve exploration success with its sizable position in the Permian Basin.

To date, the company has acquired 4,800 acres of oil and gas 5-year term mineral leases – the Weber City Prospect – in a Permian Basin region of eastern New Mexico. FormCap offers more bang for the buck for investors, because in contrast to the company’s larger competitors who have much higher overhead costs, a greater percentage of the capital that FormCap deploys for exploration actually goes into the ground.

With 40 acre spacing, FormCap believes it can potentially drill up to 100 wells on the prospect. The company’s primary objective is to extract oil from the Cisco Formation, which is believed to be a ‘giant oil trap’ formed millions of years ago. Based on Gulf Oil’s success drilling a shallow well in the Cisco Formation in 1947 and a modeling of a look-alike existing producing field (the Anton Irish field), FormCap is confident that well recoveries within its acreage could range from 100,000 to over 500,000 barrels of oil per well. Project wells are anticipate to flow at initial rates averaging 300 barrels per day.

If FormCap experiences this type of drilling success, it means that the company’s Weber City Prospect could potentially contain over 220 million barrels of oil. This would mean tremendous upside in a stock selling at its current price. Adding to the company’s favorable exploration opportunity is a management team with a proven track record for successfully exploring and developing lucrative oil and gas projects.

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FormCap Corp. (FRMC.PK) to Help Meet the Nation’s Need for Oil

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FormCap Corp. is an emerging exploration and development company in the oil and gas sector. The company’s primary focus is the discovery and development of oil in the continental United States, particularly in the Permian Basin. The Permian Basin is a prolific area that has produced over 35 billion barrels of oil and 100 trillion cubic feet of natural gas. The basin is host to over 20 percent of all domestic oil and gas produced in the United States.

Any oil discovered by FormCap will definitely be needed as the United States competes for scarce energy resources with emerging economies such as China, whose oil imports climb to new highs seemingly every month. Global energy consumption is expected to rise 50% by 2030 to 112.5 million barrels of oil per day. The sharp rise in demand for oil may happen even sooner than 2030 if a strong global economic rebound takes hold.

Adding to the growing demand for oil are concerns about the future supplies of oil. These include geopolitical worries in countries such as Iran, Iraq, Nigeria and Venezuela. But perhaps more importantly are concerns about the diminishing supplies of oil coming from the world’s existing major oil fields, such as Mexico’s Catarell field. The first-of-its-kind study last year by the International Energy Agency (IEA) of the world’s largest 800 oil fields showed that most of the big fields have peaked and production is declining at about a 6.7% rate.

It is with this backdrop that firms such as Goldman Sachs are forecasting that oil prices will average $90 a barrel this year and $110 a barrel next year. And don’t expect help from OPEC – they have said that they do not plan to increase output until a huge amount of oversupply has been absorbed. OPEC itself is expecting $80-$90 a barrel for oil prices in 2010. Natural gas prices have also climbed recently as bitter cold weather has helped to work-off a record-high level of gas inventories.

All of this plays right into FormCap’s hand with its holdings in the Permian Basin. The company’s first project – the Weber City Prospect located in Curry County, New Mexico – gives them about 4,800 acres of oil and gas leases in this prime property in eastern New Mexico. The region is so prolific that some 1,300 reservoirs have been identified as having production ceilings of 1 million barrels or more. And it is still a vastly undeveloped region – even in the more developed Texas-portion of the Permian Basin. Only 28 percent of the potential reserves have been developed to date. FormCap believes that in a successful case, there is potential to drill up to 100 wells on the property which may produce up to 300 million barrels of oil.

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