The oil and gas sector has almost always drawn interest from investors and there are many companies that investors could consider tracking at this point. One of the companies which may be worth looking into at this point is Foothills Exploration Inc., which is involved in the oil and gas sector and focused on providing the energy needs of the present and the future.
The company has decided to hone in on two main strategies for the purpose of building up its portfolio of assets. One of those is its focus on the creation of a number of high-impact oil and gas assets. The second strategy is related to investments in the geothermal and hydrogen projects through its New Energy Ventures division for the purpose of being involved in a low-carbon future.
The company was in the news last week after it announced that it had been successful in completing the acquisitions of some wells and leases in the state of Oklahoma and Kansas. In its press release, Foothills noted that up until there was sufficient green energy to fuel the world, oil, and gas would remain the sources of energy. However, the company also stated that natural gas is going to play a bigger role all over the world by being a source of clean and reliable fuel.
The acquisitions would provide Foothills with an inventory that could last many years and help the company with its production targets. Additionally, it was also noted that these assets would help the company in generating double-digit growth in 2023 and also in the following year. There were substantial reserves at those assets and the infrastructure was already in place for low-cost development.
It was in January this year that Foothills completed the 100% acquisition of the Oklahoma-based limited liability company Jubilee Exploration LLC. The company owned as many as 545 shut-in oil and gas wells. These wells and leases are situated in Kansas and Oklahoma.
Earlier on in the year on January 31, 2023, the company had managed to complete the acquisition of as many as 21 shallow oil and gas wells. All of those wells are located in Comanche County in the state of Oklahoma and are spread across a total of four leases. The wells are actually stripper wells and have an average depth of 1200 feet. On February 13 Foothills announced that it would start a return-to-production initiative for these wells.
Once these wells are back in production then all the wells combined would produce 20 to 25 barrels of oil daily. At the time, it was also announced that Foothills was going to start the return to production work with immediate effect. Each well was expected to get into production capabilities systematically and it was in the week of February 20 that the wells were expected to get into production.
On January 27 this year, the company provided another key corporate update that investors ought to know about. It had announced that back on November 25 last year, it had reached a settlement agreement with its biggest institutional investors. By way of that agreement, as many as 11 convertible promissory notes were canceled and extinguished. The promissory notes had been issued by the company at different stages between the years 2018 and 2021.