Foothills Exploration acquires 545 oil and natural gas wells in Kansas, Oklahoma
(WO) – Foothills Exploration, Inc., an oil and gas exploration company, acquired certain leases and wells located in Kansas and Oklahoma.
The acquisition provides a multi-year inventory of wells to increase the production and reserve profile of the company. The assets provide Foothills with a platform to deliver double-digit growth in production, reserves, and revenues in 2023 and 2024. The acquisition includes substantial reserves behind pipe, infrastructure in place to drive low-cost development and natural gas weighted assets.
In January of 2023, Foothills closed on the acquisition of 100% membership interest in Jubilee Exploration, LLC, an Oklahoma limited liability company, which owns 545 shut-in or stranded oil and gas wells situated on multiple leases located in northeastern Oklahoma and southeastern Kansas.
Jubilee Exploration, an independent oil and gas producer, currently controls 545 wells located across multiple counties in northeastern Oklahoma and southeastern Kansas. Anaconda Energy, LLC, a direct subsidiary of Foothills, 100% of the membership interest in Jubilee Exploration, LLC, which is now a wholly-owned indirect subsidiary of the company.
Foothills will immediately commence a return to production program focused on gas production of 139 wells located in Craig and Nowata counties, Oklahoma. The company’s return-to-production program on these properties will consist of wellhead reconnection, facility maintenance, electrical work and flowline repair work, which is expected to deliver collective production rates of between 1.5 to 2.5 MMcf of gas per day for these wells.
Foothills expects that natural gas production from all acquired wells can potentially be increased to about 5 to 8 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 drilled uncompleted wells as part of the package.
“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.