FieldPoint Petroleum (FPP) announced that drilling is expected to begin on the East Lusk 15 Federal #2 well in Lea County, New Mexico in July. The company has an operating agreement with Cimarex Energy Co. (XEC), to drill this well that targets the Bone Spring formation. The total cost for this well is expected to be approximately $7M, with net cost to FieldPoint of approximately $3.1M. This horizontal well is planned to be drilled in a similar manner to the company's well #1 on this property, which was to drill vertically to a depth of approximately 9,500 feet, to the Bone Spring formation, and approximately 4,000 to 5,000 feet laterally within the formation to the bottom hole location. The estimated time for drilling and completion is expected to be approximately 60 to 90 days. FieldPoint is very pleased with the results seen so far from the East Lusk Federal #1 well and, although there is no guarantee that the second well will produce similar results, the Company is very encouraged by the fact that Cimarex Energy has drilled numerous successful wells in the Bone Spring play, and in this area.
Asian stocks fell to one-month lows on Friday and the yen rebounded broadly as extreme volatility in the Nikkei …