RENO, Nev., April 23, 2014 (GLOBE NEWSWIRE) -- FormCap Corp. ("FormCap" or "the Company") (OTCQB:FRMC) announced today that the assignment of approximately 2400 acres of prospective oil and gas leases in five separate areas in Cowley County, Kansas has been completed. Each of the assigned leases are in areas that are in close proximity to oil fields that are currently in production.
The first location Formcap intends to drill on or before the spud date of June 15, 2014 is a direct offset to a well with significant historical production. Val Energy Inc., Wichita, Kansas, who have a rig on standby and designated for Cowley County will be the drilling contractor. Formcap's leases in Cowley County are in close proximity to other companies in the area that include Sandridge Energy, Taos Resources, Fortune Oil & Gas Corp, Val Energy and Toto Energy among others.
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.
The nearby Adam's 35-1 well (Toto Energy) initial production rates of 80 bpd and the Bullock Lease, Cowley County (Val Energy) initial production rates of up to 400 bpd prove that the Formcap Leases are located in an area of successful oil production and the Company anticipates initial production rates of between 35 – 100 bpd depending on the thickness of the zones.
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.
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
50 West Liberty Street, Suite 880
Reno, NV 89501
T: +1(775) 285-5775
F: +1(775) 285-5776
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.