FieldPoint Petroleum Corp. (NYSE MKT: FPP) entered a letter of intent to purchase producing assets in Milam County, Texas, from Minerva Rockdale E&P LLC, the company said Dec. 14.

The acquisition includes current production as well as behind pipe reserves and proved undeveloped opportunities. The terms of the transaction weren't disclosed.

Phillip Roberson, FieldPoint's president and CFO, said the deal is the Austin, Texas-based company's next step in regaining compliance with the New York Stock Exchange listing requirements and Citibank loan covenants.

"It is also an important step forward to grow our production base and create shareholder value utilizing equity," Roberson added.

In October, FieldPoint entered a forbearance agreement on its loan with Citibank to extend the due date to January 2018.

FieldPoint has an exclusive 60 day right to conduct due diligence and negotiate a definitive agreement to purchase the assets from Minerva-Rockdale. If definitive agreements are ultimately reached, FieldPoint will issue a number of shares of its common stock to the sellers that will be mutually agreed upon.