FieldPoint Petroleum Corp., a junior exploration and production company (E&P) based in Austin, TX, said it has suspended onshore drilling and non-essential operations, but a top executive said land acquisitions were still possible as a consequence of low oil and natural gas prices.
In a statement Tuesday, CFO Phillip Roberson said the E&P was taking "a very conservative approach to all of our expenditures," but he did not get into specifics.
"With the precipitous fall in commodity prices over the last several months, we have suspended drilling projects and non-essential workover activity, and we are making every effort to keep operating and overhead expenses to a minimum," Roberson said. "With that being said, we are not overlooking the fact that these market conditions are bringing forth numerous opportunities to acquire highly attractive properties at distressed prices."
U.S. Securities and Exchange Commission (SEC) records show the most recent filing FieldPoint made was a Form 8-K on Nov. 18, 2014, where it reported net income of $139,632 for 3Q2014 -- a 62% decrease from $367,899 in 3Q2013.
According to FieldPoint's website, the company owns working interests in 480 gross (96 net) producing wells in Louisiana, New Mexico, Oklahoma, Texas and Wyoming. It operates 19 wells, while partners that include Apache Corp., Cimarex Energy Corp., Denbury Resources Inc., Halcon Resources Corp. and Linn Energy LLC operate the rest.
Specifically, FieldPoint is focused on the Longwood Field in Caddo Parish, LA; the Sulimar Field in Chaves County, NM; the Loving N. Morrow Field in Eddy County, NM; the Flying M, Lusk, North Bilbrey and South Vacuum fields in Lea County, NM; the Chickasha Field in Grady County, OK; the West Allen Field in Pontotoc County, OK; the Block A-49 and Block 6 fields in Andrews County, TX; the Serbin Field in Bastrop and Lee counties, TX; the Spraberry Trend in Midland County, TX; the Whisler Field in Campbell County, WY, and the Big Muddy Field in Converse County, WY.
"I think that it is important to let our shareholders know that we continue to look at every opportunity that can help us grow our production and asset bases, but have no intention of pursuing any that we believe could put the company at risk," Roberson said. "We are optimistic that such opportunities exist."
Cimarex signed an operating agreement with FieldPoint to drill two wells targeting the Bone Spring formation in the Permian Basin in June 2010 (see Daily GPI, July 21, 2010). The agreement called for FieldPoint to own a 43.75% working interest in the wells with Cimarex holding a 37.5% stake and other partners the remainder.