DENVER, May 02, 2018 (GLOBE NEWSWIRE) — Foothills Exploration, Inc. (OTC.QB: FTXP) (the “Company,” or “Foothills”), an independent oil and gas exploration company engaged in the acquisition and development of oil and gas properties in the Rockies today announced that it has entered into a confidential Memorandum of Understanding (“MOU”) with an undisclosed seller to acquire approximately 22,598 gross (19,985 net) acres of natural gas producing properties in the Western Piceance Basin.
The properties have about 80 wells that come with existing infrastructure, of which 30 are currently producing stripper amounts of natural gas from multiple formations, including the Dakota, Mesa Verde, and Mancos B. Approximately 50 of the wells are shut-in or produce intermittently. The Company has initially identified 15 shut-in wells with immediate production growth potential to rework as part of its optimization plan 60-days post-closing of the acquisition.
“This acquisition will potentially provide the Company significant exposure to future natural gas development and reserves,” stated Kevin Sylla, the Company’s Executive Chairman. The scheduled closing date is at the end of May. The Company is in discussions with its financial advisors on securing debt financing to close the transaction and fund a production enhancement program.
“With the proposed 400-acre Jordan Cove LNG facility and marine terminal in Oregon on the horizon that will enable the transport of LNG from the U.S. West Coast to Asia, we believe from a supply perspective that there is long-term value creation potential in acquiring natural gas weighted assets in the Rockies with stacked-pay, long-lived reserves, and upside development opportunities,” continued Sylla.
If approved, Jordon Cove will be capable of receiving ~1.3 Bcf/d of natural gas via the proposed Pacific Connector Gas Pipeline, which, if approved, will connect to the Malin Hub, connecting to the Ruby Pipeline and connecting to the Opal Hub in the U.S. Rockies.
About the Piceance Basin
The Piceance Basin is a geologic structural basin in northwestern Colorado that features liquids rich natural gas. In 2016, the U.S. Geological Survey (“USGS”) conducted their second-largest assessment of potential shale & tight gas resources, assessing continuous (unconventional) oil and gas resources in the Mancos shale of the Piceance Basin. The USGS using a geology-based assessment methodology, assessed technically recoverable mean resources of 76 million barrels of shale oil, 66.3 trillion cubic feet of gas, and 45 million barrels of natural gas liquids (NGLs).
About the Company
Foothills Exploration, Inc. is a growth stage oil and gas exploration and production (E&P) company based in Denver, Colorado with a focus in the acquisition and development of undervalued and underdeveloped properties in the Rockies. The Company’s principal assets are located across well-established plays in the Rocky Mountain region. For additional information please visit the Company’s website at www.foothillspetro.com.