Nevada-based energy exploration and development firm FormCap announced it has acquired 2,400 acres of prospective oil and gas leases in Kansas for $480,000. The company said it will work with its partners Kerr Energy Group and Keta Oil and Gas to determine drill site locations for the leases in Cowley County, Kansas.
"There are tremendous oil and gas opportunities to produce commercial light oil and gas in an environment of high crude oil prices and low finding and developing costs," Graham Douglas, chief executive officer of FormCap, said in a statement about the Cowley County leases.
Last month, FormCap said it settled $672,000 in debt and trade payables and obtained financing from institutional investor Ironridge Global to complete its acquisition of its oil and gas leases in Cowley County, according to a statement by the company.
"Significant quantities of oil and gas have been discovered and produced in Cowley County in recent years," according to FormCap.
The company estimates that each completed vertical well will cost nearly $500,000. FormCap plans to start drilling in the second quarter of this year.