Quarterly report pursuant to Section 13 or 15(d)

Oil and Gas Properties

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Oil and Gas Properties
9 Months Ended
Sep. 30, 2016
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Oil and Gas Properties
Note 4. Oil and Gas Properties

 

Upon organization of Foothills Petroleum Inc., on December 24, 2015, Wilshire Energy Partners LLC contributed its 100% membership interest in Foothills Exploration, LLC, a Wyoming limited liability company, to FPI in exchange for 4,500,000 shares of FPI's common stock. At the time of contribution Wilshire Energy Partners LLC had acquired and owned rights to 38,120 acres of oil and gas leases in the State of Wyoming (as described above in Note 1, Nature of Operations) . On completion of the Share Exchange, effective May 27, 2016, Wilshire Energy Partners LLC exchanged its FPI shares for 4,500,000 shares of the Company's common stock. As a result the Company owns 100% of FPI and Foothills Exploration, LLC is now a wholly owned indirect subsidiary of the Company that retains title to these oil and gas leases. This transaction is treated as the founding transaction by the Company. The asset was valued at $72,430 at the time of transfer based on costs associated with the payment of lease bonuses, fees and taxes paid during the formation of the asset.

 

On March 29, 2016, FPI acquired a 35% working interest in the Ladysmith Anticline prospect that is located in Fremont County, Wyoming. Total acreage position is 3,061 acres located between the Great Divide/Greater Green River Basin and the Wind River Basin, in return for covering certain costs of operation in the amount of $20,000, and to a share of the working interest in the land. The primary target zones are the variable Phosphoria and Tensleep sandstone with secondary considerations in the Madison limestone and Flathead sandstone. The prospect generation was based on a licensed 2-D seismic comprising of two seismic lines covering the Chevron/Echo – Greater Green River Basin. The asset is valued at $20,000 based on the agreement. During the nine months ended September 30, 2016, the Company capitalized an additional $97,920 in costs related to this asset.