OIL - Formation Minerals Inc. Enters into Definitive Agreement To Acquire Haynesville Shale Minerals | Benzinga
JACKSBORO, Texas, June 27, 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 announced that it has entered into a purchase and sale agreement with a private seller to acquire certain producing mineral interests in Bienville Parish, Louisiana for $220,000 in cash. The acquisition is subject to customary closing conditions, including the receipt of adequate financing, and is expected to close on or about July 26, 2024. Pursuant to the terms of the agreement, Formation is entitled to the cash flow from oil and gas production attributable to the property beginning July 1, 2024. The Company is working to secure the requisite financing to complete this acquisition.
The property is located in the Haynesville Shale and is currently operated by Texas based Aethon Energy Management LLC ("Aethon"). There are currently 3 producing oil wells and pre-permits have been filed for an additional 6-9 oil wells. Aethon is a leading Haynesville natural gas company which is currently running multiple oil rigs and wells in the area. Aethon is currently drilling in the immediate area and testing 2 to 3 mile laterals to ensure maximum production from the wells. The Haynesville Shale is a massive dry natural gas formation in East Texas and Northwest Louisiana which was discovered in 2008.
Scott Cox, President and Chief Executive Officer of Formation, said, "With less than two months post-closing of the Verde Bio Holdings acquisition, we are delighted to announce our first move toward building Formation's portfolio. This acquisition is located in the active heart of the Haynesville Shale. The wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage. We have great confidence both in Aethon as an operator and in these assets and we look forward to jointly benefiting as they continue to operate and develop the area. We have been and continue to be diligent in buying properties at the right price and in the right areas, thus we believe the Company and its investors will ...