FOOTHILLS EXPLORATION INC. SIGNS LETTER OF INTENT TO ACQUIRE A SMALL INDEPENDENENT OIL & GAS OPERATOR IN THE ILLNOIS BASIN
LOS ANGELES, Oct. 29, 2021 (GLOBE NEWSWIRE) -- Foothills Exploration, Inc. (OTC: FTXP), including its direct and indirect subsidiaries, ("Foothills," or the "Company"), an oil and gas exploration company, is pleased to announce that has signed a letter of intent to acquire an oil and gas operator in the Illinois basin with producing leases.
The Company, through its direct subsidiary, Anaconda Energy, LLC, has entered into a letter of intent with an unrelated third-party to acquire: (a) one hundred percent (100%) of the membership interest and one hundred percent (100%) of the outstanding shares of common and preferred stock of the operating companies for the oil and gas wells and leases; and (b) five percent (5%) overriding royalty interest in certain leases and wells. The transaction comprises the acquisition of 20 oil wells and 4 Class II salt water disposal injection wells.
The properties are currently producing approximately 25 barrel of oil per day (BOPD). The key element to the transaction is that there are 9 inactive wells that can be returned to production immediately for nominal capital expenditure. The workover program is set to begin in November and is expected to potentially double production.
“This acquisition complements our initial transaction in the Illinois Basin by adding additional opportunities for field-wide optimization and long-life conventional reserves” said Alex Hemb, CEO of Anaconda Energy, LLC and Director of Foothills. “The Company is currently looking at other bolt-on acquisition opportunities in the basin to add to its portfolio,” continued Hemb.
“There is tremendous opportunity to work with and acquire small independent operators with wells that have behind pipe opportunities to increase production and generate immediate cash flow” said Hemb. “The decline in capital investment in oil and gas production over the past two years has opened a tremendous window to take advantage of this current high price environment for oil and natural gas by rapidly increasing production and with low-risk remedial work-over projects,” continued Hemb.
The Company’s partner, Benchmark Properties, Ltd. will manage the properties. Benchmark is guided by a Petroleum Geologist with over 40 years’ experience in exploitation and exploration in the Illinois Basin. Benchmark Properties, Ltd. has been drilling and operating successful oil leases in the Illinois Basin since 1995.
Wind River Project Update
The geophysical program completed the collection of soil samples in October. Samples are currently in for analysis and should be completed within two weeks. The Wind River basin has over 12,000 feet of historical stacked pay zones across the following formations: Cody Shale, Frontier, Muddy, Dakota / Lakota, Phosphoria, Tensleep, and Madison. The primary objectives for our drilling program will be the Frontier, Tensleep and Madison formations.
About the Company
Foothills Exploration, Inc. (“FTXP” or the “Company”), is an oil and gas exploration and development company focused on delivering the energy needs of today and tomorrow. The Company’s strategy is to build a balanced portfolio of assets through two core initiatives. The first initiative is to generate high-impact oil and gas exploration projects. The second is to invest in hydrogen and geothermal projects for a low carbon future through its New Energy Ventures division by identifying areas where the Company can contribute to a viable, realistic, and balanced future energy mix. For additional information please visit the Company’s website at www.foothillspetro.com.
All statements, other than statements of historical facts, included in this release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on certain assumptions we made based on management's experience, perception of historical trends and technical analyses, current conditions, capital plans, drilling plans, production expectations, our ability to raise adequate additional capital, or enter into other financing arrangements to support our acquisition, development and drilling activities, anticipated future developments, and other factors believed to be appropriate and reasonable by management. When used in this release, words such as "will," “possible,” "potential," "believe," "estimate," "intend," "expect," "may," "should," "anticipate," "could," "plan," "predict," "project," "profile," "model," "strategy," "future" or their negatives or the statements that include these words or other words that convey the uncertainty of future events or outcomes, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. 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 are forward-looking statements.
Forward-looking statements are not guarantees of performance. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. As a result, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. We have had sporadic and limited revenue and our securities are subject to considerable risk. Investors are cautioned to review FTXP’s filings with the Securities and Exchange Commission for a discussion of risk and other factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
EVP of Finance
Released October 29, 2021