Formation Minerals acquires producing mineral interests in Bienville Parish, Louisiana

Formation Minerals, Inc. (OTCQB: FOMI), a burgeoning oil and gas company, announced a strategic expansion through the acquisition of producing mineral interests in Bienville Parish, Louisiana. The deal, valued at $220,000 in cash, involves the purchase of certain mineral interests from a private seller, with the closure expected around July 26, 2024.

Subject to customary closing conditions and the arrangement of adequate financing, Formation will benefit from the cash flow generated from oil and gas production on the property starting July 1, 2024. The acquisition will enhance Formation’s asset base in the prolific Haynesville Shale, an area known for its substantial natural gas reserves, discovered in 2008.

The property, operated by Texas-based Aethon Energy Management LLC, currently boasts three producing oil wells, with plans for an additional 6-9 wells pending permits. Aethon, recognized for its expertise in managing multiple oil rigs and wells, is actively drilling nearby, employing 2 to 3 mile lateral drills to optimize well production.

Scott Cox, President and CEO of Formation, expressed enthusiasm about the acquisition, noting, “This purchase marks an important step in expanding our portfolio in the heart of the active Haynesville Shale. With stable production and potential for additional drilling, we see significant upside in these assets. Our partnership with Aethon and our strategic acquisitions are aligned with our goal to enhance shareholder value through careful investment and leveraging rising commodity prices.”

Following the recent acquisition of Verde Bio Holdings, Formation has initiated operations for over ten new wells within its properties in the Permian Basin and Haynesville Shales. These developments are part of the company’s ongoing strategy to expand its portfolio and increase oil and gas outputs.

Additionally, Formation continues to explore further acquisitions and has recently completed capital raises totaling approximately $160,000, with prospects for an additional $200,000. These funds are earmarked for strategic acquisitions and other business development activities, with a focus on maximizing shareholder value. Plans for potentially listing on a national securities exchange are also being considered as part of the company’s growth strategy.

Formation Minerals, Inc. is a dedicated oil and gas enterprise headquartered in Jacksboro, Texas. Specializing in the acquisition and management of mineral and royalty interests, Formation focuses on low-risk, onshore oil and gas properties across the major U.S. oil plays.

The company’s growth is driven by a combination of strategic acquisitions and expert portfolio management, aiming to build a robust collection of high-quality, revenue-producing assets.

Formation’s latest acquisition is a calculated move to secure stable and productive assets within a well-established oil and gas region. This strategic purchase not only promises immediate cash flow but also offers potential for significant production increases through further development. It reflects the company’s proactive approach in strengthening its position in the competitive energy market, enhancing its operational capabilities, and ensuring sustained growth and profitability.