"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.