Foothills Exploration Inc. will acquire oil and gas interests and assets in Utah and Wyoming from Total Belief Ltd., a New Times Energy Corp. subsidiary. Foothills entered a purchase and sale agreement, a Jan. 5 press release reported.
Total consideration for the acquisition is $10.75 million in a combination of cash, stock and promissory notes.
Foothills, which operates in the Rockies and on the Gulf Coast, will have an entry into the Uinta Basin. Through the agreement, it could acquire more than 6,000 acres and up to 16 shut-in wells on Native American tribal lands in the basin.
Foothills said five shut-in wells on fee lands in the Altamont-Bluebell Field could reach near-term production through stimulation and use of surface equipment.
Foothills will receive an additional 40% working interest in the Ladysmith prospect, covering 3,060 acres in Wyoming’s Greater Green River Basin, bringing total working interest to 75%.
The transaction provides Foothills with a licensed and bonded operator in Utah with bonds in place with the Bureau of Land Management, the State of Utah and the Bureau of Indian Affairs.
Foothills also received six shut-in wells in Utah’s Natural Buttes Field, which it will work over and produce.
Finally, Foothills acquired about 13.166 million shares of Grey Hawk Exploration Inc.-- 55.63% of the outstanding shares. Canada-based Grey Hawk owns a nonoperated working interest in two producing wells in the southern portion of the Natural Buttes Field.
A third party independent study estimated a total of 1.28 million barrels of net proved reserves for the Uinta Basin properties from the Green River and Wasatch formations.
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