JACKSBORO, Texas, June 13, 2024 (GLOBE NEWSWIRE) -- Formation Minerals, Inc. (OTCQB: FOMI) ("Formation" or the "Company"), a growing oil and gas company with a focus on the acquisition and management of oil and gas minerals and royalties, today provided an update on the Company's activities following the closing of its acquisition of Verde Bio Holdings, Inc. ("Verde") on May 9, 2024 to create a premier company focused on the acquisition and management of oil and gas minerals and royalties and its business plans.
Mr. Cox stated: "With just over 30 days post-closing of the Verde acquisition, we wanted to take this opportunity to update shareholders on what we are doing and where we are heading. As previously announced, following the closing, the Company has continued with Verde's business plan of acquiring and managing cash flowing, oil and gas minerals and royalties. We believe this business model to be extremely lucrative and viable given the sector now has over $30 billion in value and continues to grow."
Portfolio News:
With high prices sustained for oil and gas, Formation's well count continues to rise. Since the closing, the Company received notice that over eight (8) new wells are in the process of being brought online on Formation's oil and gas properties. The main areas of these new wells being brought online and new development continue to be on the Company's Permian Basin and Haynesville Shales properties which add concrete, new oil and gas development assets to the Company's portfolio.
The Company continues to actively manage its portfolio to maximize stockholder value, including by identifying potential sales of non-core assets to allow for the reinvestment of those proceeds into the higher growth areas. In May 2024, the Company sold five lower-performing, non-core assets for $140,000 and is working to reinvest the proceeds into better performing royalty properties.
Scott Cox, the Company's President and Chief Executive Officer, stated: "With commodity prices still trending at elevated levels, new oil and gas wells on our properties equates to more revenues for Formation and for our investors and does not require any additional investment by Formation, as the mineral and royalty owner. We have been and continue to be diligent in buying properties at the right price and in the right areas; thus we believe the Company and its investors reap the benefits of the rise in commodity pricing, as well as the continued development of our acreage. We are excited to continue executing our business plan and grow the Company and its revenues."
Mr. Cox continued: "We have been actively evaluating a number of potential acquisitions as we continue to execute on our business plan, including raising responsible capital to deploy into strategic and accretive acquisitions for our existing portfolio, to maximize stockholder value. We recently completed two capital raises, raising gross proceeds of approximately $160,000, with the potential for an additional $200,000. Additionally, we expect to continue to pursue other strategic funding opportunities, including a possible uplisting to a national securities exchange."
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company based in Jacksboro, Texas, engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States. The Company's growth strategy relies primarily on leveraging management's expertise to grow through the strategic acquisition of high quality revenue producing royalty interests and strategic and opportunistic divestiture non-producing mineral interests.
Forward-Looking Statements:
This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, Formation's expectations regarding our portfolio, the divestiture out-of-favor assets and acquisition of better performing royalty properties, execution of Formation's business plan and the expectations regarding Formation's ability to raise capital and maximize stockholder value. Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of Formation's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: (i) Formation's ability to execute its acquisition and disposition strategy and grow and manage growth profitability and retain its key employees; (ii) the ability to maintain the listing of its common stock on the OTCQB; (iii) the risk that we are not able to maintain and enhance its brand and reputation in its marketplace, adversely affecting Formation's business, financial condition and results of operations; (iv) the risk that periods of rapid growth and expansion could place a significant strain on Formation's resources, including its employee base, which could negatively impact Formation's operating results; (v) the risk that Formation may never achieve or sustain profitability; (vi) the risk that Formation may need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; and (vii) other risks and uncertainties indicated from time to time in the its Registration Statement on Form S-4, as amended (the "Registration Statement") filed with the Securities and Exchange Commission ("SEC") in connection with the recently completed merger. The foregoing list of factors is not exhaustive. There may be additional risks that Formation does not know or that Formation currently believes to be immaterial that could also cause results to differ from those contained in any forward-looking statements. Recipients should carefully consider such factors and the other risks and uncertainties described in the "Risk Factors" section of the Registration Statement on Form S-4, as amended, and the periodic reports and other documents filed or to be filed by Formation from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Formation assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Formation does not give any assurance that Formation will achieve its expectations.
Contact:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
