FieldPoint Petroleum Acquires Stake in Longwood Field, Caddo Parish, LA
FieldPoint Petroleum reports the acquisition of a working interest in the Longwood Field in Caddo Parish of North Louisiana. The acquisition price is $550,000 for working interest of 12.22% in two natural gas wells effective December 1, 2005. Based upon engineering reports and certain standard assumptions we paid approximately $2.75 per mcfe for these gas reserves. We estimate that this property will replace approximately 115% of 2005 our natural gas production.
"This acquisition gives FieldPoint an initial entry into the North
Louisiana natural gas play, and it meets all of our criteria of acquire-and-exploit strategy," states Ray Reaves, President and CEO for FieldPoint. "We expect this purchase to show an excellent rate of return based on existing production, and this field, we believe offers certain development potential, which could serve to increase our production, earning, and cash flow from operations," commented Reaves.
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