LOS ANGELES, Feb. 15, 2019 (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 natural gas properties in the Rockies today announced that the Company will further its contrarian investment thesis by focusing on natural gas weighted properties at attractive valuations. While the Company will focus on undervalued natural gas properties, oil assets, which also fit the Company’s acquisition criteria, will continue to be evaluated as well.
Unlocking Value in the Rockies
In 2019, the Company plans to continue executing its Rockies-based roll-up strategy, focused on undervalued and underdeveloped properties. “Geographically, we believe there is tremendous value in the Rockies, with real potential to unlock serious value in the coming years,” said the Company’s Executive Chairman, Kevin Sylla. “and that’s why Foothills is planning to acquire between 2 to 4 Rockies-based properties during 2019,” continued Sylla. “It is our position that while many energy producers shift their focus away from natural gas to target the hotter shale plays in the Permian basin, now is the time to acquire select properties with stable predictable production, long lived reserves, and substantial development potential,” persisted Sylla.
“The Company is currently evaluating target acquisition sizes ranging from $1 to $10 million, which in our opinion, are underserved and yield higher inefficiencies for price discovery relative to larger deals and therefore typically result in more attractive acquisition entry points,” said Chris Jarvis, the Company’s EVP of Finance. “In addition, since properties in this price range often tend to be neglected going into the sales process, in our experience, this also tends to yield low-hanging fruit with modest capital deployment, post-acquisition,” continued Jarvis.
The Company recently made a non-refundable deposit on its latest target acquisition, which involves 22-natural gas stripper-wells situated on approximately 18,000 acres in Wyoming. “This acquisition is pivotal to the Company’s roll-up strategy in the Rockies and provides the catalyst for making future bolt-on acquisitions in the Greater Green River Basin, as well as possible strategic joint-ventures,” stated B.P. Allaire, the Company’s CEO.
Natural Gas Market Growth Indicators
“From a macroeconomic viewpoint, we believe global demand for natural gas will only continue to ramp up for the foreseeable future,” said Jarvis. “The Company sees two secular growth trends in the global market place, which we believe will transform the natural gas markets,” continued Jarvis.
U.S. LNG export capacity is expected to more than double by the end of 2019 according the U.S. Energy Information Administration (EIA). LNG infrastructure in Asia and Europe are also growing at a similar pace. As a result, the natural gas market is becoming a globalized market, whereas before it was distributed regionally. Couple this with the phasing out of coal-fired power plants in the U.S. as well as in Europe over the next decade, and natural gas is expected to play an even larger part of the global energy mix.
The Company is currently evaluating all strategic options to strength its balance sheet, while minimizing shareholder dilution. The Company’s goal is to retire all short-term debt and reducing or refinancing a significant portion of its long-term debt in 2019. “The lack of access to capital, which has plagued other publicly-traded junior E&P and mining companies has certainly affected us as well. We successfully negotiated several key agreements to acquire some great assets, at deep discounts, that much to our chagrin, we were unable to perform on,” continued Sylla.
“Nevertheless, we have retooled and realigned ourselves on the right pathway to mitigate these financing risks moving forward, said Sylla. “and we intend to become an active acquirer of quality assets at right prices in the near future,” ended Sylla.
About the Company
Foothills Exploration, Inc. is a growth stage oil and gas exploration and production (E&P) company 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 U.S. Rocky Mountain region. For additional information please visit the Company’s website at www.foothillspetro.com.