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Wednesday, August 10th, 2011 and is filed under Drilling Announcements
FieldPoint Petroleum Corporation (NYSE/AMEX: FPP) announced today that drilling has begun on the East Lusk 15 in Lea County, New Mexico. The Company has an operating agreement with Cimarex Energy Co, (NYSE: XEC) www.cimarex.com, to drill two wells that will target the Bone Spring formation. The total cost for each well is expected to be approximately $5,000,000.
These horizontal wells are planned to be drilled vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 days.
FieldPoint is aware of at least one horizontal well within a few miles of the subject area that had production tests ranging from approximately 400 to 800 barrels of oil per day. However, this is not necessarily an indication of what these wells can be expected to produce. It is also note worthy that EOG Resources, Inc has a well to the south of the East Lusk 15 location in section 22.
FieldPoint’s President and CEO, Ray Reaves stated, “There are two highly important aspects of this drilling program worth mentioning. First,, Cimarex Energy is one of the best in the industry at completing wells in the Bone Spring formation. This is very important for well success and optimal well production. And second, if successful, this drilling program could serve to significantly increase our daily production and proved producing reserve base. Considering those two points together, this becomes quite possibly our most important project to date.”
FieldPoint will own a 43.75% working interest, Cimarex will own a 37.5% working interest, and other partners will own the remaining 18.75% working interest in the two planned wells.
About FieldPoint Petroleum Corp. www.fppcorp.com
FieldPoint Petroleum Corporation is engaged in oil and gas exploration, production and acquisition, primarily in New Mexico, Oklahoma, Texas and Wyoming.
This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such projections or statement reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and that actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ from those projected, such as decreases in oil and gas prices and unexpected decreases in oil and gas production is included in the company’s periodic reports filed with the Securities and Exchange Commission (at www.sec.gov).