Foothills Exploration, Inc · OTC:FTXP
Foothills Exploration — Investor Presentation (April 2018)
20 slides from Foothills Exploration's investor presentation, Apr 11, 2018
Slide 1: A Rapidly Growing E&P Company
A Rapidly Growing E&P Company MicroCap C New York, N IL OTCQB: FTXP
Slide 2: Disclaimer
Disclaimer ) FOOTHILLS ‘THIS COMMUNICATION IS FOR YOUR GENERAL INFORMATION ONLY AND IS NOT AN OFFER OR SOLICITATION TO BUY OR SELL ANY SECURITY. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT ARE “FORWARD-LOOKING STATEMENTS" FOR PURPOSES OF FEDERAL AND STATE SECURITIES LAWS, INCLUDING, BUT
Slide 3: Corporate Snapshot
Corporate Snapshot Foothills Exploration, Inc. (OTCQB: FTXP), based in Denver, Colorado, is a growth stage oil and gas exploration and production (E&P) company with a focus and expertise in the acquisition and development of oil and gas properties. © Currently acquiring and developing undervalued &
Slide 4: Regional Focus and Expertise
Regional Focus and Expertise ) FOOTHILLS © Well defined geographic focus — Rockies © Strong management and technical team with a proven track record and deep operational knowledge of the area © Applying new technology to define and optimize untapped potential Rocky Mountains © Uinta Basin — Utah © P
Slide 5: Uinta Basin Overview
Uinta Basin Overview ) FOOTHILLS [) Multi-stacked resource play init’ Stacked with 30 billion barrels of OOIP Resource Pay from multiple formations Mahogany ® Uinta Basin has more OOIP than OOIP in Montney, Eagle Ford, Niobrara and Bakken Bick Shale shale plays © Strong industry results being genera
Slide 6: Large Operators in the Uinta Basin
Large Operators in the Uinta Basin o FOOTHILLS Foothills is surrounded by world-class operators in the area NYSE: CPG NEWFIELD NYSE: NEX Mkt Cap: $3.9B © VAR Cvs: cop: ss Crescent Point S NYSE: APC eog resources Mkt Cap: $30.8B. NYSE: EOG Mkt Cap: $59.88 Anadarie® Petroleum Corporation A elpaso NYSE
Slide 7: Unlocking Shareholder Value
Unlocking Shareholder Value ) FOOTHILLS ® Financing the Company’s 21% working interest in two EOG-operated horizontal Uinta Basin wells for $3.2MM is expected to deliver immediate field level net operating income of approximately $1.8 million annually based on $2.75 gas. ® Investing $0.9MM into rewo
Slide 8: Short-Term Outlook
Short-Term Outlook
Slide 9: Short-Term Outlook
Short-Term Outlook on FOOTHILLS ® FTXP is currently focused on funding and developing two in-house projects to create shareholder value through a balanced mix of oil and natural gas production from current assets in the Uinta Basin. © Meanwhile, management continues to evaluate several prospective t
Slide 10: Unlocking Value from Current Assets
Unlocking Value from Current Assets $4.1 million CapEx invested into current assets is projected to deliver annual field level gross revenues of ~$6.5 million (~$5.2 MM field level net revenues) + $3.6MM gross ($2.9MM net) field level revenues in year 1 based on $2.75 gas Timing: immediate Phase I:
Slide 11: Two EOG-Hz Wells
Two EOG-Hz Wells ) FOOTHILLS ® TOTAL CAPEX = $3.2 MM © Two EOG-operated horizontal wells have been producing commercial quantities of natural gas since December 2017 © 21.62% Working Interest in both wells operated by EOG Resources, Inc. (NYSE:EOG) ® Estimated to generate field level net operating i
Slide 12: Duck Creek Reworks
Duck Creek Reworks ) FOOTHILLS © TOTAL CAPEX = $0.9 MM ® Rework 6 Duck Creek wells back to production © Expected 210 BOPD (post rework) © Rework program will target bypassed pay zones in Castle Peak, B-Limestone, Black Shale and Douglas Creek formations © Swab, perforate and frac rework operations ®
Slide 13: Forecasted Project Economics
Forecasted Project Economics ) $3.6 MM gross revenues/yr $2.9 MM net field revenues/yr $1.8 MM net operating income/yr 14,900,627 shares outstanding 2 EOG Hz Wells Projected to add $1.8 million/year in field net operating income based on $2.75 gas +°3.7 MMCFD gas production from 21% working interest
Slide 14: Balanced Portfolio
Balanced Portfolio O tS $6.5 million total annual $3.9 million total annual gross revenues net income (before G&A) Annualized Gross Revenue (%) Annualized Net Income (%) sase2n on szassts ssss1s09 sasane "Oil "Gas soil = Gar 4
Slide 15: Additional Development Opportunities
Additional Development Opportunities ) FOOTHILLS © Acquisition of Tiger Energy properties provided an entry point and a strong platform for growth in the Uinta Basin © Multi-stacked resource plays with numerous low-cost rework / development opportunities and upside potential from emerging horizontal
Slide 16: Uinta Basin Asset
Uinta Basin Asset ) FOOTHILLS © Asset consists of 5,700 acres with proved undeveloped reserves providing the Company with numerous infield drilling locations and considerable upside potential in the near term: » 7+ MMBO PUD reserves » 6+ MMBO Probable reserves > Existing infrastructure in place » Mu
Slide 17: Uinta Basin Recent Hz-Drilling Update
Uinta Basin Recent Hz-Drilling Update ) FOOTHILLS ® Crescent Point Energy (NYSE: CPG) >» Wasatch Hz Wells’ IP = 1,700 BOEPD (avg) » Castle Peak Hz Wells’ IP = 1,000 BOEPD (avg) © Newfield Exploration (NYSE: NFX) > Central Basin Hz Wells’ IP = 1,100-1,500 BOEPD (avg) » 2018 CapEx budget includes dril
Slide 18: Management Team
Management Team LLs Kevin J. Sylla Executive Chairman + Also serves as CEO of Foothills Petroleum, Inc., FTXP’s main operating subsidiary. + 10 years of oil & gas industry experience with extensive knowledge in business development, mergers and acquisitions, and management of oil and gas field opera
Slide 19: Management Team (con't)
Management Team (con’t) Alex Hemb -ctor, Petroleum Engineer + 25+ years’ experience as Petroleum Engineer, both onshore and offshore with broad domestic and international work experience. + Engineered & developed technology for separating oil and water and commercialized this into a successful compa
Slide 20: Acquisition + Development * Production Growth
ACQUISITION + DEVELOPMENT * PRODUCTION GROWTH @ FOOTHILLS EXPLORATION, INC. Company Contact 633 17th Street, Suite 1700 Investor Relations Contact Kevin J. Sylla Denver, CO 80202 Christopher Jarvis, Executive Chairman, (720) 449-7478 EVP Finance (720) 449-7478 (720) 449-7478 ksylla@foot www foothi a
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