Foothills Exploration Inc. has added 545 wells to its oil and gas inventory with the closing of its Jubilee Exploration LLC acquisition in January, the company announced in a Feb. 24 press release. The financial terms of the deal were not disclosed.
Anaconda Energy, a Foothills subsidiary, acquired 100% membership interest in Jubilee Exploration, an independent oil and gas producer with shut-in or stranded oil and gas wells across multiple leases in Oklahoma and Kansas. Jubilee Exploration is now an indirect subsidiary of Foothills.
The acquisition’s existing infrastructure allows Foothills to grow in production, reserves and revenues in 2023 and 2024 with low-cost development opportunities, the company said.
“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,” said Kevin J. Sylla, executive chairman of Foothills. “This acquisition enhances our well inventory and overall position in the U.S. Midcontinent and is complementary to our current footprint.”
Foothills said it will immediately begin gas production at 139 well sites in Oklahoma’s Craig and Nowata counties. The wells are expected to deliver average production of 1.5 MMcf/d to 2.5 MMcf/d by reconnecting wellheads, maintaining facilities and repairing electrical and flowlines. Natural gas production from all acquired wells is expected to increase to approximately 5 MMcf/d to 8 MMcf/d within their first two years of production, according to the press release.
The company also plans to return 14 wells in Jackson and Garvin to production. Foothills said it anticipates combined production to average 30 bbl/d to 40 bbl/d. Garvin County includes three DUCs that are currently in litigation.
Headquartered in Los Angeles, Foothills is an oil and gas exploration and development company, with initiatives also in hydrogen and geothermal projects.
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