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About Formation Minerals, Inc. (FOMI)
Formation Minerals, Inc. (OTCQB: FOMI) is a Jacksboro, Texas-based oil and gas company focused on the acquisition, management, and optimization of mineral and royalty interests in onshore U.S. oil and gas properties. The company operates within major energy-producing regions, including the Permian Basin, Haynesville Shale, Delaware Basin, DJ Basin, and others, strategically diversifying its portfolio to capitalize on varying commodity environments and mitigate regional risks.
Core Business Model
Formation Minerals specializes in acquiring revenue-generating mineral, royalty, and overriding royalty interests. Unlike upstream operators directly engaged in drilling and production, Formation focuses on earning royalty income from producing wells without bearing the operational risks or capital expenditures associated with extraction activities. This low-risk, high-margin business model enables the company to generate steady cash flow while actively managing its portfolio to maximize returns.
Strategic Growth Through Acquisitions
The company’s growth strategy is rooted in leveraging management expertise to identify and acquire high-quality, revenue-producing assets. Formation has completed over 18 acquisitions to date, targeting properties with stable production profiles and long-life, low-decline characteristics. Its portfolio spans hundreds of wells operated by leading energy companies, including Southwestern Energy, Chesapeake Energy, and Aethon Energy Management.
Formation also employs a disciplined approach to portfolio optimization, divesting underperforming or non-core properties to reinvest proceeds into higher-growth opportunities. This strategy ensures efficient capital allocation and enhances overall portfolio performance.
Market Position and Competitive Differentiation
Operating in the highly competitive oil and gas sector, Formation Minerals distinguishes itself through its pure-play royalty model, which reduces exposure to operational risks while providing consistent revenue streams. Its diversified portfolio across multiple basins positions the company to benefit from both oil-rich and gas-heavy plays, offering resilience against commodity price fluctuations.
Additionally, Formation's focus on low-risk, low-decline assets aligns with its commitment to creating sustainable, long-term value for shareholders. The company’s active portfolio management and strategic acquisitions further strengthen its competitive edge in the energy market.
Operational Highlights
- Revenue-generating interests in approximately 395 producing wells.
- Diversified portfolio spanning key U.S. basins, including the Haynesville Shale, Permian Basin, and DJ Basin.
- Proven expertise in acquiring and managing mineral and royalty interests.
- Active divestiture strategy to optimize asset mix and reinvest in high-potential properties.
Commitment to Shareholder Value
Formation Minerals remains focused on delivering strong returns through disciplined asset growth, strategic acquisitions, and efficient portfolio management. By minimizing operational risks and emphasizing revenue generation, the company is well-positioned to capitalize on opportunities within the energy sector while maintaining a sustainable business model.
Formation Minerals, a Texas-based oil and gas company, announced a Common Stock Purchase Agreement with Alumni Capital to raise up to $1,000,000. The agreement allows Formation to sell shares to Alumni at 75% of the lowest traded price on OTCQB or 90% if listed on Nasdaq. The purchase period ends on December 31, 2025, or earlier if the commitment is met. Furthermore, Formation issued a warrant to Alumni for shares worth 50% of the commitment amount, expiring January 14, 2030.
Proceeds will be used for general corporate purposes, asset acquisitions, and working capital. The company also entered new strategic accounting partnerships aimed at cost-savings and is focused on acquiring revenue-generating assets in the natural gas sector.
CEO Scott Cox highlighted the importance of this capital for growth and development, emphasizing a strategy of opportunistic acquisitions in the energy sector. The company remains optimistic about the potential in oil and gas markets.
Formation Minerals (OTCQB: FOMI), an oil and gas company based in Jacksboro, Texas, announced an Equity Financing Agreement with GHS Investments, to raise up to $10,000,000. The agreement, signed on December 31, 2024, allows Formation to sell shares of its common stock to GHS over a 24-month period, subject to certain conditions. The shares will be sold at 80% of the market price, and the transactions will commence once the SEC declares the registration statement effective.
The funds raised will be used for general corporate and working capital purposes, acquisitions of assets, businesses, or operations, and other purposes deemed in the best interest of the company. CEO Scott Cox highlighted the importance of this capital for growth and development post-merger and uplist to the OTCQB, emphasizing a strategy of opportunistic asset acquisition in the energy sector. The agreement is intended to maximize returns and create sustainable value for shareholders.
The shares will be issued under exemptions from registration provided by the Securities Act of 1933. This announcement does not constitute an offer to sell or a solicitation to buy any shares in jurisdictions where such actions would be unlawful.
Formation Minerals, Inc. (OTCQB: FOMI) provided a fiscal year-end update, highlighting key achievements and future plans. The company completed the acquisition of Verde Bio Holdings, Inc., shifting its focus to oil and gas minerals and royalties. Formation's portfolio now includes revenue-producing interests in approximately 395 wells across multiple states and basins.
Key highlights include:
- Portfolio diversification across Texas (35%), Colorado (29%), Louisiana (19%), and other states (19%)
- Over 18 acquisitions of revenue-producing properties
- Strategic divestitures of non-core assets, generating $140,000 in recent sale
- Engagement of investment banking firm and NYC-based securities counsel
- Exploration of strategic alternatives, including possible national securities exchange listing
CEO Scott Cox emphasized the company's focus on growing its portfolio, revenues, and overall profitability to create long-term stockholder value.
Formation Minerals has entered into a purchase and sale agreement to acquire mineral interests in Haynesville Shale, Louisiana for $220,000 in cash. The acquisition is subject to customary closing conditions, including the receipt of adequate financing, and is expected to close on or about July 26, 2024.
Formation is entitled to the cash flow from oil and gas production from July 1, 2024. The property includes 3 producing oil wells, with permits for 6-9 additional wells. The acquisition is part of Formation's strategy to grow its portfolio, following the Verde Bio Holdings acquisition.
The company is also raising capital to fund strategic acquisitions and has completed two capital raises totaling $160,000, with potential for an additional $200,000. Future plans include potential uplisting to a national securities exchange.
Formation Minerals provided a corporate update, detailing its recent acquisition of Verde Bio Holdings on May 9, 2024. The company continues to adopt Verde's business plan, which focuses on acquiring and managing cash-flowing oil and gas minerals and royalties. Since the acquisition, Formation has brought eight new wells online, primarily in the Permian Basin and Haynesville Shales, enhancing its portfolio and revenue potential. Formation sold five non-core assets for $140,000 in May 2024 and plans to reinvest these funds into high-growth areas. The company raised $160,000 through two capital raises, with the potential for an additional $200,000. Furthermore, Formation is exploring strategic funding opportunities, including a potential uplisting to a national securities exchange.
Formation Minerals announced the sale of five non-core assets for $140,000 on May 21, 2024. The company aims to reinvest the proceeds into better-performing royalty properties. CEO Scott Cox highlighted the strategic acquisition and divestiture approach, emphasizing the company's ability to capitalize on favorable market conditions. Formation Minerals plans to continue evaluating new acquisitions and developing a sell-side market, including the 1031 Exchange market, to maximize stockholder value. The company focuses on building a high-performance portfolio and raising capital for strategic acquisitions.
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