FieldPoint Petroleum

Corporation

(OTCBB:FPPC)

An independent energy company focused on exploration,

production and acquisition of crude oil and natural gas

properties in the Southwestern United States

 

Stock Price :                                       $1.51                           Corporate Offices:     1703 Edelweiss Drive

Shares Outstanding:                           7.7 Million                                                       Cedar Park, Texas 78613

Estimated Public Float:                      4.3 Million                   Phone:                         512-250-8692

Market Capitalization:                       $11.63 Million             Fax:                            512-964-5573

52-Week Low/High:                          $0.35/$1.65                 Web Sites:                  www.fppcorp.com

Fiscal Year End:                               December 31               # of Employees:         4                                             
Average Daily Trading (30-Days): 58,800                                                                        

                                                                                                           

Text Box: CORPORATE SUMMARY

 

Based in the Texas hill country outside of Austin, FieldPoint Petroleum Corporation is a profitable, independent U.S. energy company focused on risk-free exploration, low cost production and strategic acquisition of “long life” crude oil and natural gas properties, with current field operations in New Mexico, Oklahoma, Texas and Wyoming. 

 

Since its founding in the mid-90’s by Company CEO/CFO Ray Reaves, FieldPoint has built a strong and steady track record of acquiring and exploiting proven well sites/leaseholds, increasing production at all of its properties and exercising profit-minded fiscal control in its strategic growth policies.  Currently, FieldPoint has varying ownership interests in 304 gross productive wells (82.53 net), of which the Company operates 59.  The other wells are operated by independent contractors and/or strategic development partners under standard industry and farm-out contracts. 

 

For the nine months ended September 30, 2004, FieldPoint reported record results, reflecting a 16% increase in revenues, or $2.15 million compared to $1.85 million in the same nine month period in 2003; and a 255% increase in net income, rising to $404,440 from $113,808 in the comparable period in the prior year.   Moreover, cash flow from FieldPoint’s operating activities increased 134% to $682,668 compared to $291,234 in the prior year’s nine month period.   Oil and gas production has also continued to climb with third quarter 2004 results revealing that FieldPoint increased production to 22,697 barrels of oil equivalent (BOE) compared to 19,083 BOE in the second quarter 2004.

 

 

GROWTH STRATEGY

 

Looking ahead, the Company’s growth strategy is centered squarely on expanding its reserves while increasing production and cash flow through the acquisition and development of low/no risk producing oil and gas properties.  Further, FieldPoint’s acquisition plan provides for not only identifying proven oil and gas sites, but also leaseholds and other working interest in exploration areas.     

As is its practice whenever it acquires a new property, FieldPoint executes an active redevelopment program, which includes several initiatives designed to increase production and current reserves, such as facilities improvement, production equipment upgrades, and well bore optimization activities.  In some cases, the Company has elected to “farm out” the exploration of certain leaseholds in exchange for full relief of exploration/drilling costs.  In the event that the site yields proven reserves, then FieldPoint is responsible for footing a portion of the well completion, and collect a like percentage of the cash flow generated by the site.   This strategy empowers FieldPoint to greatly limit its capital risk while fully exploiting the potential of its properties.

Text Box: FIELDPOINT CASE STUDY “ACQUIRE AND EXPLOIT” STRATEGY AT WORK IN NEW MEXICO On March 25, 2004, FieldPoint announced that it had acquired for $850,000 an 87.5% working interest in three wells located in the Lusk Field in Lea County, New Mexico. Besides the benefit of receiving approximately $40,000 in monthly cash flow from producing wells, the Company elected to farm out the exploration/development of certain acreage on the leasehold to another much larger, independent oil and gas company. The project partner is charged with financing the full exploration and drilling costs associated with the first target drilling area, estimated to be approximately $1.3 million. If successful, only 20% of the total well completion costs (approximately $300,000) will be borne by FieldPoint in exchange for 20% of the total working interest. Site geological and engineering assumptions, coupled with positive activity on adjacent leaseholds, lead FieldPoint and its project development partner to believe that the Lusk Field could yield approximately 350,000 BOE in proved, developed, producing reserves.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER FIELDPOINT PROPERTIES

 

Chickasha Field, Grady County, Oklahoma is a water flood project producing from the Medrano Sand. The Rush Springs Medrano Unit is located approximately sixty-five miles southwest of Oklahoma City, Oklahoma. The Company has a 20.64% working interest in the unit which consists of 21 producing oil and gas wells and 11 water injection wells.

 

Big Muddy Field, Converse County, Wyoming is a producing oilfield located approximately 30 miles south of Casper, Wyoming. FieldPoint Petroleum owns a 100% working interest in the Elkhorn and J.C. Kinney lease, which consists of 3 oil wells, producing out of the Wallcreek and Dakota formations at depth ranging in general from approximately 3,200 feet to approximately 4,000 feet. The Company acquired this interest in September 1996, and has plans to re-enter or drill more wells.

 

Serbin Lee Field and Bastrop Counties, Texas is an oil and gas field located approximately 50 miles east of Austin and 100 miles west of Houston. The Company has a working interest in 74 producing oil and gas wells, with a production rate of approximately 100 BOE net to the Company. Oil and gas are produced from the Taylor Sand at depths ranging from approximately 5,300 feet to approximately 5,600 feet; it is a 46-gravity oil sand. The Company acquired this interest in the years of 1994-1996.

 

West Allen Field, Pontotoc County, Oklahoma is a producing oil and gas field located approximately 100 miles south of Oklahoma City, Oklahoma. The Company has a working interest in 52 leases or a total of 225 wells, the leases have multiple well bores which FieldPoint has plans to participate in the recompletion of behind pipe zones.

 

Hutt Wilcox Field, McMullen and Atascosa County, Texas is an oil and gas field located approximately 60 miles south of San Antonio, Texas producing from the Wilcox sand. The Company has a working interest in 14 oil wells.

 

INVESTMENT HIGHLIGHTS

 

 

ANNUAL PRODUCTION (In 000’s)

ANNUAL RESERVES (In 000’s)

*2004 Estimates Do Not Include New Mexico Drilling.

 

CORPORATE GOVERNANCE

 

Committed to building long term shareholder value while remaining highly responsive to ethical, environmental, corporate and social issues, FieldPoint is led by a highly experienced board of directors, comprised mainly of independent members, and includes:

·       Mr. Ray D. Reaves, Founder, Chairman, Chief Executive Officer, President and Director

·       Mr. Karl W, Reimers, Independent Director

·       Mr. Roger D. Bryant, Independent Director

·       Mr. Daniel Robinson, Independent Director

·       Mr. Mel Slater, Independent Director

NEWS ARCHIVES

 

Nov. 22, 2004    FieldPoint Petroleum Engages Elite Financial Communications Group

Nov. 12, 2004    FieldPoint Petroleum Corporation Reports Record Third Quarter Earnings on 52% Revenue Increase

Aug. 30, 2004    FieldPoint Petroleum Announces New Director

Aug. 18, 2004    FieldPoint Petroleum Corporation Reports Second Quarter Results

July  06, 2004    FieldPoint Petroleum Corporation Updates Lusk Field Production

June 15, 2004     FieldPoint Petroleum President Interviewed by CEOcast

June 14, 2004     FieldPoint Petroleum Corporation Updates Operational Activities       

 

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OTHER RELEVANT DATA

 

Stock Transfer Agent:                ComputerShare Investor Services

SEC Counsel:                            Neuman & Drennen, LLC

Auditors:                                  Hein & Associates, LLP              

 

MARKET PERFORMANCE - Trailing 12 Months

 

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This publication is an advertisement on behalf on FieldPoint Petroleum Corporation and may not be construed as investment advice.  This advertisement does not provide an analysis of the Company’s financial position and is not a solicitation to purchase or sell securities of the Company.  Readers should consult with their own independent tax, business and financial advisors with respect to any investment, including any contemplated investment in the advertised Company.  All information contained in this advertisement should be independently verified with the advertised Company and by an independent financial analyst.  The Publisher, it affiliates, officers, directors, subsidiaries and agents (collectively, “the Publisher”) of this advertisement has been compensated by the Company. Compensation includes a cash monthly retainer fee of $10,000 per month.  In preparing this advertisement, the Publisher has relied upon information received from the Company, which, although believed to be reliable, cannot be guaranteed.  This advertisement is not an endorsement of the Company by the Publisher.  The Publisher is not responsible for any claims made by the Company.  You should independently investigate and fully understand all risks before investing.  Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this advertisement are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, governmental approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s filings with the Securities and Exchange Commission.