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FOOTHILLS EXPLORATION INC. SIGNS LETTER OF INTENT TO ACQUIRE A SMALL INDEPENDENENT OIL & GAS OPERATOR IN THE ILLNOIS BASIN
FOOTHILLS EXPLORATION INC. SIGNS LETTER OF INTENT TO ACQUIRE A SMALL INDEPENDENENT OIL & GAS OPERATOR IN THE ILLNOIS BASIN.
About this update from Foothills Exploration, Inc
[{"type":"text","content":"\n 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 Ba...