Divestiture includes five non-core or under-performing properties
JACKSBORO, TEXAS, May 22, 2024 – PRISM MediaWire - 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 announced that, on May 21, 2024, it sold five non-core lower performing assets for $140,000 to a private buyer.
“This is a great example of responsible portfolio management and the solid execution of our business plan, underscoring our ability to capitalize on favorable oil and gas market conditions.” Scott Cox, President and Chief Executive Officer of Formation, stated. “Our strategic acquisition strategy enabled us to purchase these assets at historically low prices and monetize them as commodity prices rose, all the while receiving the revenues from them. The current environment created an opportunity to identify out-of-favor assets to sell and reinvest the proceeds into better performing royalty properties. Formation’s goal is to build a high-performance portfolio with active asset management. As we have been cultivating a large pipeline of potential acquisitions in the buy-side market, we are also focused on developing a sell-side market in retail channels, including the 1031 Exchange market.”
“We plan to reinvest the net proceeds from this transaction, and we continue to evaluate 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,” Mr. Cox added “We pride ourselves on the ability to be both creative and agile in this highly lucrative energy market. We are very pleased with our portfolio of assets and the combined growth in revenue and development of new wells but continue to analyze our portfolio for opportunistic divestitures of other non-core assets at attractive profits.”
About Formation Minerals, Inc.
Formation Minerals, Inc. (OTCQB: FOMI) is a pure play oil and gas company 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 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.