FieldPoint Petroleum Corp. issued an update on its oil and gas operations in the United States, where the company is active in several different producing basins.
FieldPoint Petroleum Corp. reported that the company paid the first installment of its share of drilling costs at a well in Lea County, New Mexico. The company paid $975,000 to Cimarex Energy (XEC). FieldPoint Petroleum Corp. owns a 43.75% working interest in the well, with Cimarex Energy and several other partners owning the balance.
The well being drilled is targeting the Bone Spring formation, and is the first well in a two well drilling agreement signed between FieldPoint Petroleum Corporation and Cimarex Energy. The agreement contains an option for a third well if the first two wells are successful.
FieldPoint Petroleum Corp. said that the total cost of each well is approximately $4.47 million. The well will be drilled to a vertical depth of 9,500 feet, and then finished with a horizontal lateral to bring the total measured depth to over 14,000 feet.
FieldPoint Petroleum Corp. also turned down an offer from Cimarex Energy to purchase a two-year assignment of the leasehold interest in the drilling agreement.
For more information on the company, go to www.fppcorp.com
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