Formation Minerals, Inc. Announces Opportunistic Divestiture of Assets

Source: www.gulfoilandgas.com 5/22/2024, Location: North America

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.”


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