FieldPoint Makes Key Acquisiton in New Mexico
FieldPoint Petroleum has acquired a working interest in the Bilbrey Field in Lea County New Mexico. The acquisition price is $1,670,000 for working interest of 50% and net revenue interest of 43% in the leasehold and related equipment, effective January 1, 2007. Based upon engineering reports and certain standard assumptions, this is expected to add approximately 108,000 BOE in proved developed producing reserves net to FieldPoint.
"This is truly an important acquisition for FieldPoint," stated Ray Reaves, President and CEO for FieldPoint. "We estimate that the reserves acquired will replace more than 100% of our total 2006 oil and natural gas production, while at the same time adding approximately one hundred mcf (thousand cubic feet) in daily gas production. We also believe that this acquisition could further serve to increase our production, earnings, and cash flow from operations by affording FieldPoint the opportunity for certain development in this field."
As with its previous acquisitions, FieldPoint plans for an active redevelopment program with this property, designed to increase production and reserves. However, no time frame can be given as to when, or if, any redevelopment activity will begin.
ConocoPhillips Company is the operator of this property.
FieldPoint Petroleum Corporation is engaged in oil and gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas, and Wyoming.
- Drilling Underway at FieldPoint Petroleum's New Mexico Well (Jun 25)
- FieldPoint Boosts Borrowing Base (May 16)
- FieldPoint to Drill Additional Wells in New Mexico (Feb 15)