Chartmaster
4 months ago
Formation Minerals, Inc. Provides Fiscal Year End Corporate Update
JACKSBORO, Texas, Aug. 14, 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 its fiscal year-end stockholder update.
To our valued friends and stockholders,
We hope that this letter finds you well and enjoying the summer. We at Formation continue to execute our strategy and are pleased to provide a corporate update in connection with the filing of our annual report on Form 10-K, highlighting the past year’s achievements and our vision for the future.
With the acquisition of Verde Bio Holdings, Inc. (“Verde”) and the shift in our business focus, this past year was a busy and transformative year for Formation. We amended our charter to allow us greater flexibility in the issuance of equity to facilitate our future growth plans if necessary. We believe that this acquisition positions us for the next phase of growth through healthy and responsible capital raising and continued acquisitions of quality revenue-producing assets.
Our singular focus remains on creating long-term stockholder value. We believe Formation has an enormous opportunity and can build upon Verde’s business plan and strategy, which makes us optimistic and confident about our future.
Major Highlights in Fiscal Year 2024
As further described below, during the fiscal year ended April 30, 2024, we:
Completed the acquisition of Verde to enter into a new business.
Amended our corporate documents to afford the Company more flexibility in future growth plans.
Continued execution of Verde’s acquisition strategy, expanding our new portfolio of revenue-producing assets.
Engaged an experienced marketing firm to enhance stockholder communications.
Completed strategic divestitures of non-core, lower-performing assets to optimize our portfolio.
Retained an investment banking firm to assist us in exploring our strategic alternatives for maximizing stockholder value.
Engaged New York City-based securities counsel.
CEO Scott Cox stated:
“Following the closing of the Verde acquisition, I'm pleased to report that we have continued to build upon Verde’s growth initiatives driven by the strategic expansion of our low-risk, low-decline, long-life asset acquisition model into complementary acquisitions. We remain focused on growing our portfolio and revenues, as well as overall profitability. We are excited about the opportunities that lie ahead and remain committed to creating long-term value for our stockholders.”
Key Highlights
Portfolio Highlights and Acquisition Activity:
To date, we (including Verde) have made over 18 acquisitions of revenue producing properties. As of August 13, 2024, our portfolio consists of revenue producing interests in approximately 395 wells under operators such as Southwestern Energy Company, Chief Energy Corporation, EOG Resources, Inc., Civitas Resources, Inc., Ovintiv Inc., Aethon Energy Management LLC, Chesapeake Energy Corporation, Petro Operating Company LLC, and others.
Breakdown of Portfolio by State and Basin:
Texas: 35% in Permian/Delaware Basin and Eagleford Shale
Colorado: 29% in the DJ Basin and Piceance Basin
Louisiana: 19% in Haynesville Shale
Ohio, West Virginia, Wyoming, and Oklahoma: 19% in Utica and Marcellus Shale, Powder River Basin and the Anadarko Basin
We believe our diversified portfolio across different markets offers us unique advantages. From the oil-rich Permian Basin to the gas-heavy Haynesville Shale, we believe we are positioned to capitalize on different market opportunities.
We continue to have a healthy pipeline of new deal-flow and are evaluating potential acquisitions that complement our portfolio, while actively managing the portfolio to ensure we maximize revenue based on current commodity environments. Further, we also continue to evaluate our portfolio for low-performing assets and possible candidates for divestment to generate cash to reinvest into better performing and higher growth potential assets.
We recently announced that we have begun to market certain lower-performing non-core properties. Our latest sale generated $140,000 in proceeds. Taking into account royalties received during the period in which we owned the property, we realize a healthy profit in divestiture deals, which generate additional cash for us to reinvest in better-performing properties.
Corporate Highlights:
The completion of our strategic acquisition and subsequent name change to “Formation Minerals, Inc.” marked a transformative milestone in our history. We believe the acquisition sets a solid foundation for our future expansion plans, and demonstrates our commitment to creating long-term stockholder value. We are now poised to pursue responsible capital raising initiatives, supporting our strategy of acquiring quality, revenue-generating assets.
In line with our growth objectives, we have retained an investment banking firm and engaged New York City-based securities counsel, which will be crucial, as we explore additional strategic alternatives to maximize stockholder value, include a possible listing on a national securities exchange, which we believe would significantly enhance our visibility and access to capital markets. In addition, we are evaluating additional sources of liquidity.
To enhance our communication with the investment community, we have hired a marketing firm experienced in digital media and stockholder communication. This partnership will help us effectively convey our value proposition, growth strategy and operational achievements to current and potential stockholders.
We believe our proactive approach allows us to optimize our portfolio and invest in high-potential properties. Formation remains dedicated to continuously refining our asset mix, maximizing returns and creating sustainable value for our stockholders.
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company based in Jacksboro, Texas, engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The Company’s growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of high quality revenue producing royalty interests and strategic and active management of our portfolios. We currently own producing mineral, royalty, and overriding royalty interests in the DJ Basin of Colorado and Wyoming, the Haynesville Shale of Louisiana, the Delaware and Permian Basin of Texas, the Marcellus and Utica shales in West Virginia, and the Anadarko Basin in Oklahoma. The Company is focused on providing strong stockholder returns through asset growth generated by our acquisitions and organic growth of our properties.
Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, Formation’s expectations regarding the receipt of requisite financing, if at all, the performance of the assets, our portfolio, the divestiture out-of-favor assets and acquisition of better performing royalty properties, execution of Formation’s business plan and the expectations regarding Formation’s ability to raise capital and maximize stockholder value. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of Formation’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) Formation’s ability to execute our acquisition and disposition strategy and grow and manage growth profitability and retain our key employees; (ii) the ability to maintain the listing of our common stock on the OTCQB; (iii) the risk that the Company is not able to maintain and enhance our brand and reputation in our marketplace, adversely affecting Formation’s business, financial condition and results of operations; (iv) the risk that periods of rapid growth and expansion could place a significant strain on Formation’s resources, including our employee base, which could negatively impact Formation’s operating results; (v) the risk that Formation may never achieve or sustain profitability; (vi) the risk that Formation may need to raise additional capital to execute our business plan, which may not be available on acceptable terms or at all; and (vii) other risks and uncertainties indicated from time to time in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (the “Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on August 13, 2024. The foregoing list of factors is not exhaustive. There may be additional risks that Formation does not know or that Formation currently believes to be immaterial that could also cause results to differ from those contained in any forward-looking statements. Recipients should carefully consider such factors and the other risks and uncertainties described in the “Risk Factors” section of the Annual Report and the periodic reports and other documents filed or to be filed by Formation from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Formation assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Formation does not give any assurance that Formation will achieve our expectations.
Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
https://www.globenewswire.com/newsroom/ti?nf=OTIwNDg3OCM2NDIzOTk3IzUwMDEyNDk4MQ==
https://ml.globenewswire.com/media/YTRhMTRiNDgtYWI3My00MGJhLThhZmUtNWEwNDIxZTExN2RjLTUwMDEyNDk4MQ==/tiny/Formation-Minerals-Inc-.png
Source: Formation Minerals, Inc.
© 2024 GlobeNewswire, Inc.
https://www.otcmarkets.com/stock/FOMI/news/story?e&id=2949119
Chartmaster
6 months ago
Formation Minerals, Inc. Enters into Definitive Agreement To Acquire Haynesville Shale Minerals
Provides Additional Company Updates
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 reap the benefits of the rise in commodity pricing, as well as the continued development of our acreage. We are excited to continue executing our business plan and grow the Company and its revenues. 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.”
Additional Company Updates
As previously announced, Formation’s well count continues to rise. Since the closing of the Verde acquisition, the Company has received notice that now over ten new wells are in the process of being brought online in Formation’s oil and gas properties. The new wells and new development assets are located 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 evaluate a number of potential acquisitions as we continue to execute on our business plan, including raising responsible capital to deploy into strategic and accretive acquisitions for our existing portfolio, to maximize stockholder value. We recently completed two capital raises, raising gross proceeds of approximately $160,000, with the potential for an additional $200,000. Additionally, we expect to continue to pursue other strategic funding opportunities, including a possible uplisting to a national securities exchange,” concluded Mr. Cox.
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company based in Jacksboro, Texas, engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The Company’s growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of high quality revenue producing royalty interests and strategic and active management of our portfolios.
Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, Formation’s expectations regarding the pending acquisition and the timing of closing and the receipt of requisite financing, if at all, the performance of the assets post-acquisition, our portfolio, the divestiture out-of-favor assets and acquisition of better performing royalty properties, execution of Formation’s business plan and the expectations regarding Formation’s ability to raise capital and maximize stockholder value. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of Formation’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) Formation’s ability to execute its acquisition and disposition strategy and grow and manage growth profitability and retain its key employees; (ii) the ability to maintain the listing of its common stock on the OTCQB; (iii) the risk that we are not able to maintain and enhance its brand and reputation in its marketplace, adversely affecting Formation’s business, financial condition and results of operations; (iv) the risk that periods of rapid growth and expansion could place a significant strain on Formation’s resources, including its employee base, which could negatively impact Formation’s operating results; (v) the risk that Formation may never achieve or sustain profitability; (vi) the risk that Formation may need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; and (vii) other risks and uncertainties indicated from time to time in the its Registration Statement on Form S-4, as amended (the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”) in connection with the recently completed merger. The foregoing list of factors is not exhaustive. There may be additional risks that Formation does not know or that Formation currently believes to be immaterial that could also cause results to differ from those contained in any forward-looking statements. Recipients should carefully consider such factors and the other risks and uncertainties described in the “Risk Factors” section of the Registration Statement on Form S-4, as amended, and the periodic reports and other documents filed or to be filed by Formation from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Formation assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Formation does not give any assurance that Formation will achieve its expectations.
Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
https://www.globenewswire.com/newsroom/ti?nf=OTE2OTk3NCM2MzQ0ODQxIzUwMDEyNDk4MQ==
https://ml.globenewswire.com/media/YWZmNGIwNjMtYTdkNy00YzY5LWI0NWYtODU2Yzk2Njc4NGNhLTUwMDEyNDk4MQ==/tiny/Formation-Minerals-Inc-.png
Source: Formation Minerals, Inc.
© 2024 GlobeNewswire, Inc.
https://www.otcmarkets.com/stock/FOMI/news/story?e&id=2902999
Chartmaster
7 months ago
Formation Minerals, Inc. Announces Opportunistic Divestiture of AssetsPress Release | 05/22/2024
JACKSBORO, Texas, May 22, 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, on May 21, 2024, it sold five non-core lower performing assets for $140,000 to a private buyer.
“This is a great example of responsible portfolio management and the solid execution of our business plan, underscoring our ability to capitalize on favorable oil and gas market conditions,” Scott Cox, President and Chief Executive Officer of Formation, stated. “Our strategic acquisition strategy enabled us to purchase these assets at historically low prices and monetize them as commodity prices rose, all the while receiving the revenues from them. The current environment created an opportunity to identify out-of-favor assets to sell and reinvest the proceeds into better performing royalty properties. Formation’s goal is to build a high-performance portfolio with active asset management. As we have been cultivating a large pipeline of potential acquisitions in the buy-side market, we are also focused on developing a sell-side market in retail channels, including the 1031 Exchange market.”
“We plan to reinvest the net proceeds from this transaction, and we continue to evaluate a number of potential acquisitions as we continue to execute on our business plan, including raising responsible capital to deploy into strategic and accretive acquisitions for our existing portfolio, to maximize stockholder value,” Mr. Cox added. “We pride ourselves on the ability to be both creative and agile in this highly lucrative energy market. We are very pleased with our portfolio of assets and the combined growth in revenue and development of new wells but continue to analyze our portfolio for opportunistic divestitures of other non-core assets at attractive profits.”
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The Company’s growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of high quality revenue producing royalty interests and strategic and opportunistic non-producing mineral interests.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, Formation’s expectations regarding our portfolio, the divestiture out-of-favor assets and acquisition of better performing royalty properties, execution of Formation’s business plan and the expectations regarding Formation’s ability to raise capital and maximize stockholder value. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of Formation’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) Formation’s ability to execute its acquisition and disposition strategy and grow and manage growth profitability and retain its key employees; (ii) the ability to maintain the listing of its common stock on the OTCQB; (iii) the risk that we are not able to maintain and enhance its brand and reputation in its marketplace, adversely affecting Formation’s business, financial condition and results of operations; (iv) the risk that periods of rapid growth and expansion could place a significant strain on Formation’s resources, including its employee base, which could negatively impact Formation’s operating results; (v) the risk that Formation may never achieve or sustain profitability; (vi) the risk that Formation may need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; and (vii) other risks and uncertainties indicated from time to time in the its Registration Statement on Form S-4, as amended (the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”) in connection with the recently completed merger. The foregoing list of factors is not exhaustive. There may be additional risks that Formation does not know or that Formation currently believes to be immaterial that could also cause results to differ from those contained in any forward-looking statements. Recipients should carefully consider such factors and the other risks and uncertainties described in the “Risk Factors” section of the Registration Statement on Form S-4, as amended, and the periodic reports and other documents filed or to be filed by Formation from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Formation assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Formation does not give any assurance that Formation will achieve its expectations.
Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
https://www.otcmarkets.com/stock/FOMI/news/Formation-Minerals-Inc-Announces-Opportunistic-Divestiture-of-Assets?id=441402
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