California-based Foothills Exploration, Inc. announced the acquisition of 545 wells and leases in Oklahoma and Kansas and plans to return many of them to production.
Headquartered in Los Angeles, the company obtained the wells through the 100% acquisition of Jubilee Exploration, LLC, an Oklahoma limited liability company. Jubilee owned the wells in northeastern Oklahoma and southeastern Kansas. But many of the wells were either shut-in or stranded on multiple leases.
The announcement explained that Anaconda Energy, LLC, a subsidiary of Foothills had acquired all membership interest in Jubilee Exploration.
Foothills stated it will “immediately commence a return to production program” focused on production of 139 wells in Craig and Nowata counties in the northeast part of Oklahoma. It will involve wellhead reconnection, facility maintenance, electrical work and flowline repair work. The restoration is expected to result in the delivery of between 1.5 to 2.5 million cubic feet of gas per day for the wells.
Foothills expects that natural gas production from all acquired wells can potentially be increased to about 5 to 8 million cubic feet per day (“MMCF”) within the first two years of production.
In addition, the 14 Jubilee-owned oil wells in Jackson and Garvin counties, Oklahoma, will also be returned to production. The company anticipates 30-40 barrels of oil production per day from these properties combined. The Garvin County properties include three (3) drilled uncompleted wells (“DUC’s”) as part of the package. The Garvin County wells are the subject of litigation proceedings, which are in the process of being settled by the parties.
“Our natural gas-focused strategy is based on having economical, long-lived reserve assets in established basins to serve a growing nationwide demand for clean, affordable and abundant natural gas. This acquisition enhances our well inventory and overall position in the U.S. midcontinent and is complementary to our current footprint,” said Kevin J. Sylla, Executive Chairman of Foothills.
Foothills currently holds over 18,500 acres in the Wind River Basin of Wyoming and over 5,700 acres in the Uinta Basin of Utah. The Company is actively seeking to grow its footprint in the Rocky Mountain region by targeting high quality oil and gas assets for acquisition and development.