FieldPoint Petroleum has received an offer from Cimarex Energy to enter into a farmout agreement covering fifty percent of all the FieldPoint leasehold interest in section 15 of Lea County, NM. The proposal includes drilling the first horizontal well. Section 15 offsets the Korczak well in section 14 and Cimarex already has leasehold interest in section 16. The drilling target would be to horizontal drill in the Bone Spring formation.

FieldPoint is aware of at least one horizontal well within approximately 5-10 miles of the subject area that came in producing 400 to 800 barrels of oil per day, but will engage the services of a geologist to evaluate the potential of the leasehold before any decision to proceed is made.

FieldPoint's President and CEO, Ray D. Reaves, said, "As we previously announced, data from section 14 near the Korczak well indicates the possibility of good pay zones in the upper and lower Wolfcamp formations. We would definitely like to explore the potential of the Bone Spring formation in this area as well. If we decide to pursue this, we will work with Cimarex or another industry partner."

Tags: FieldPoint Petroleum