OIL - Formation Minerals Inc. Announces Corporate Update | Benzinga
JACKSBORO, Texas, June 13, 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 provided an update on the Company's activities following the closing of its acquisition of Verde Bio Holdings, Inc. ("Verde") on May 9, 2024 to create a premier company focused on the acquisition and management of oil and gas minerals and royalties and its business plans.
Mr. Cox stated: "With just over 30 days post-closing of the Verde acquisition, we wanted to take this opportunity to update shareholders on what we are doing and where we are heading. As previously announced, following the closing, the Company has continued with Verde's business plan of acquiring and managing cash flowing, oil and gas minerals and royalties. 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."
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With high prices sustained for oil and gas, Formation's well count continues to rise. Since the closing, the Company received notice that over eight (8) new wells are in the process of being brought online on Formation's oil and gas properties. The main areas of these new wells being brought online and new development continue to be 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 manage its portfolio to maximize stockholder value, including by identifying potential sales of non-core assets to allow for the reinvestment of those proceeds into the higher growth areas. In May 2024, the Company sold five lower-performing, non-core assets for $140,000 and is working to reinvest the proceeds into better performing royalty properties.
Scott Cox, the Company's President and Chief Executive Officer, stated: "With commodity prices still trending at elevated levels, new oil and gas wells on our properties equates to more revenues ...