FormCap Executes Letter of Intent (Farm-In) for Kansas Prospect
Reno, NV – FormCap Corp. (“FormCap” or “the Company”) (OTCQB: FRMC) announced today that it has executed a Letter of Intent (“LOI”) to execute a Farm-in Agreement (“Farm-in Agreement”) with Rainchief Energy Inc, (“Rainchief”) Vancouver, British Columbia, within ten (10) business days from the date of this announcement. The oil & gas prospect is 100% controlled by FormCap and includes 2400 acres of prospective oil and gas leases (“The FormCap Lands”) located in Cowley County, Kansas. The Lil-Bobby #1-28, a proposed 3,300’ Mississippian well is located in the NE/4 of the SE/4 of Section 28-T30S-R6E.
Under the terms of the Proposed Farm-in Agreement Rainchief shall have the right to earn a 60% working interest in 920 acres of the FormCap Lands by paying 100% of the cost to drill, complete and equip three (3) wells to target the Mississippian Formation. Upon completion of the third and final well Rainchief will also earn a 50% interest in the balance of the FormCap Lands representing 1440 acres.
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.
CORPORATE CONTACT INFORMATION:
50 West Liberty Street, Suite 880
Reno, NV 89501
T: +1(775) 285-5775
F: +1(775) 285-5776
INSIDER INTEREST DISCLOSURE:
Brad Moynes, Vancouver, British Columbia, is an Officer, Director and more than 10% stock holder of both FormCap Corp and Rainchief Energy Inc. Mr. Moynes recused himself from board resolutions and the farm-in was approved by disinterested directors.