FieldPoint Petroleum Corp. is an oil and gas exploration, production and acquisition company primarily focused on Louisiana, New Mexico, Oklahoma, Texas and Wyoming. The company today announced the $4.4 million acquisition of a working interest in Texas.
Per the agreement, effective September 1, 2009, FieldPoint will acquire a 74 percent to 100 percent working interest in the Block Field in Andrews County, Texas, as well as net revenue interests between 59 percent and 87.5 percent in leasehold and equipment.
The field is expected to generate roughly 204,000 barrel of oil equivalent (BOE) in proved developed producing reserves based on a $70 oil price. The company said these numbers point to an "attractive opportunity" for additional wells, as well as future reserves contingent on successful drilling.
"We are excited to control operations of this field, which produces all oil and should increase our daily oil production by approximately 35 percent," Ray Reaves, president and CEO of FieldPoint Petroleum stated in the press release. "On a barrel of oil equivalent (boe) basis, this is expected to increase our overall daily production for oil and natural gas combined by approximately 25 percent. Those figures make this a very important acquisition for FieldPoint."
Reaves also detailed the significance and the positive impact the acquisition is expected to have on the FieldPoint Petroleum.
"There are two highly important aspects of this acquisition. First, we estimate that the reserves acquired will replace between 100 percent to 150 percent of our total 2009 oil and natural gas production, on a boe basis," Reaves stated. "And second, we also believe that this acquisition could further serve to increase our production by affording FieldPoint the opportunity for certain developmental drilling on 20 to 80 acre spacing targeting other potential formations on the acreage in this field. Considering those two points together makes this quite possibly our most important acquisition to date."
The company declined to give a commencement for redevelopment of the property at this time.
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