Updated #Oil and #Gas #Stock Breaking News - FOOTHILLS
EXPLORATION INC. (OTC.QB: $FTXP)
UPDATES ON 7,000 ACRE, 87 WELL ACQUISITION, @Foothills_FTXP
LOS ANGELES, CA June 19, 2019 –
(Investorideas.com Newswire) Foothills
Exploration, Inc. (OTC.QB: FTXP) (the “Company,” or “Foothills”), an independent oil and
gas exploration company engaged in acquiring and developing oil and natural gas
properties in the Rockies today provided an update on its proposed acquisition
of 7,000 acres and 87 oil and gas wells in Montana.
"We look forward to closing on this
transaction during Q3 this year, and when closed we expect that this Montana
asset will add accretive value to our asset base and complement our existing
portfolio," stated Kevin Sylla, Executive Chairman of Foothills. “This planned
acquisition will add another revenue producing property where we can improve
operations, reduce costs, and secure value-added drilling and development
opportunities to our exploration inventory,” continued Sylla.
Asset Purchase
The target acquisition is located is in
Montana’s North-Central Basin and is oil-weighted. The properties consist of about
7,000 acres and a total of 87 oil and gas wells. These stripper wells currently
produce approximately 106 barrels of oil per day (“BOPD”). The oil properties
include 58 wells – 12 producing, 25 shut-in proved developed non-producing and
21 injection wells comprising of the Sumatra and Big Wall/Little Wall Fields. The
gas properties consist of 29 stripper wells – 10 producing and 19 shut-in. The
properties currently generate approximately $1.8 million in total annual gross
revenues.
The Company has devised a field-wide optimization
program designed to bring production back online from the 44 shut-in wells and expects
these workover operations to generate a 100% increase in current production
levels. “We expect that this acquisition will provide Foothills with significant
upside from an operational standpoint, where we can workover existing wells,
and from an exploration and development standpoint, where we can work on several
behind-pipe opportunities,” said Sylla.
Future Upside
The Company’s technical team believes that
horizontal development is worth pursing in the Amsden and Tyler formations. In
1993, Texaco drilled a 2,000FT horizontal well to the Amsden formation on the
same acreage position, which had an initial production of 169 BOPD and produced
158,000 barrels of oil with 12 years of flat production decline, and which further
supports management’s belief in a future exploration program. Three additional
structurally higher drilling locations offsetting the Texaco well have been
identified with what management believes to be excellent development potential.
The U.S. Geological Survey (“USGS”)
completed a geology-based assessment of the continuous (unconventional) oil and
gas resources of the Big Snowy Trough area of central Montana and western North
Dakota, which included a majority of the 7,000 acres being acquired by the
Company. The USGS North-Central Montana continuous oil assessment unit, undiscovered
mean resources summary for the Heath formation determined that there was an
estimated 637 million barrels of oil in the area.
The Company’s technical team, in
conjunction with a third-party engineering firm, will perform a comprehensive
study of the area and assess the optimal development plan for the Heath
formation. In Q1 2019, another operator in the area announced a Heath horizontal
discovery, west of the acquisition target’s Sumatra field.
“We are excited at the opportunity to
acquire this asset,” continued Sylla. “We think there is tremendous upside
development drilling conventional and unconventional horizontal wells from
shallow depths across the acreage position. This acquisition gives us the
opportunity to be at the forefront of an emerging horizontal play,” ended Sylla.
The Company expects to close on this acquisition
on or about August 22, 2019, subject to approval from the State of Montana,
however, no assurances can be given that the transaction will close.
About the Company
Foothills Exploration, Inc. is a growth
stage oil and gas exploration and production (E&P) company with a focus on acquiring
and developing undervalued and underdeveloped properties in the Rockies. The
Company’s principal assets are located across well-established plays in the U.S.
Rocky Mountain region. For additional information please visit the Company’s
website at www.foothillspetro.com.
Forward-Looking Statements
This
release includes ''forward-looking statements'' within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements give
our current expectations, opinions, belief or forecasts of future events and
performance. A statement identified by the use of forward-looking words
including ''will,'' ''may,'' ''expects,'' ''projects,'' ''anticipates,''
''plans,'' ''believes,'' ''estimate,'' ''should,'' “could,” “proposed” and
certain of the other foregoing statements may be deemed forward-looking
statements. These statements are subject to risks and uncertainties and are
based on the beliefs and assumptions of management, and information currently
available to management. Although Foothills believes that the expectations reflected
in such forward-looking statements are reasonable, these statements involve
risks and uncertainties that may cause actual future activities and results to
be materially different from those suggested or described in this news release.
In particular, statements, express or implied, concerning our future operating
results and returns or our ability to acquire or develop proven or probable
reserves, our ability to replace or increase reserves, increase production, or
generate income or cash flows, or generate commercial production from wells
drilled on our properties in same formations or zones as other discoveries made
by third parties are forward-looking statements. All forward-looking statements
should be evaluated with the understanding of their inherent uncertainty. Factors
that could cause the Company's actual results to differ materially from those
expressed or implied by forward-looking statements include, but are not limited
to: risks inherent in natural gas and oil drilling and production activities,
including risks of fire, explosion, blowouts, pipe failure, casing collapse,
unusual or unexpected formation pressures, environmental hazards, and other
operating and production risks, which may temporarily or permanently reduce
production or cause initial production or test results not to be indicative of
future well performance or delay the timing of sales or completion of drilling
operations; delays in receipt of drilling permits; risks with respect to
natural gas and oil prices, a material decline which could cause Foothills to
delay or suspend planned drilling operations or reduce production levels; risks
relating to the availability, timing and cost of capital to fund drilling
operations that can be adversely affected by adverse drilling results, production
declines and declines in natural gas and oil prices; risks relating to
unexpected adverse developments in the status of properties; risks relating to
the absence or delay in receipt of government approvals or third party
consents; the Company's ability to identify, finance and integrate recent or
future acquisitions; the volatility of the Company's stock price; and other
risks described in Foothills' Annual Report on Form 10-K and other filings with
the SEC, available at the SEC's website at www.sec.gov. Investors are cautioned that any
forward-looking statements are not guarantees of future performance and actual
results or developments may differ materially from those projected. The
forward-looking statements in this press release are made as of the date
hereof. The Company takes no obligation to update or correct its own
forward-looking statements, except as required by law, or those prepared by
third parties that are not paid for by the Company.
Investor Contact
Christopher
Jarvis
(424)
901-6655
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