FormCap Corp.

July 09, 2009 12:39 ET

FORMCAP Negotiates Option Agreement on New Mexico Prospect

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2009) - FORMCAP CORP. (PINK SHEETS:FRMC) announced today that it has entered into an Option Agreement with Morgan Creek Energy Corp. to acquire up to a 50% Working Interest (40.75% Net Revenue Interest) in Morgan Creeks' approximately 13,000 acre entire Frio Draw Prospect located in Curry County, New Mexico. Under the terms of the agreement, FormCap is required to drill and complete two mutually defined targets on the acreage to earn its interest.

Following the initial two wells, Morgan Creeks' management and land team will work with FormCap to establish additional targets on the Frio draw based on technical data and drill results. The two companies will jointly fund additional targets and have committed to a minimum five hole drill program in order to effectively test the Frio Draw.

"This is a very exciting prospect. It is in a well established formation, the San Andres, which should provide FormCap with a relatively low risk opportunity. In addition, Morgan Creek's management team brings exceptional expertise and knowledge of this prospect, which we believe will increase our possibility of success," stated Graham Douglas, FormCap's President & CEO.

About FormCap Corp.:

FORMCAP is a reporting issuer with the shares traded on the "Pink Sheets". FORMCAP's mandate is to seek out developing companies for acquisition, joint venture or partnering and to provide these companies with financial and senior strategic management assistance.

About Morgan Creek Energy Corp.:

Morgan Creek Energy Corp. is a natural resource exploration company engaged in the acquisition and development of strategic oil and natural gas properties. For further information see:

Safe-Harbor Statement: Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may", "would", "will", "expect", "estimate", "anticipate", "believe", "intend", and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

Contact Information

  • FormCap Corp.
    Graham Douglas