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Foothills Exploration Inc. has acquired a 21% working interest in a pair of horizontal wells in Utah’s Uinta Basin from an undisclosed party. Financial terms of the deal were not disclosed.
Both wells are to be operated by EOG Resources Inc., according to Denver-based Foothills. The Stagecoach 111-20H was spudded on Sept. 15 and is still drilling, and the second well was recently spudded as well, the independent producer said. Both wells have been classified as confidential with the Utah Division of Oil, Gas and Mining.
"These wells fit with our overall growth strategy for the basin, providing us with the ability to gain insight from a world-class operator," said Executive Chairman Kevin Sylla. "As consistent with our business model, we will continue to aggressively pursue additional opportunities in the Uinta Basin, whether in the form of acquisitions or joint ventures.
The acquisition provides Foothills "with the opportunity to participate in a rising natural gas price environment as well as diversify the company's current portfolio of oil assets," said Foothills’ Christopher Jarvis, executive vice president of finance.
Two months ago Foothills said it would re-enter the Duck Creek 8-16GR and 17-GR wells in the basin. The wells are in the Duck Creek area of Uintah County in the Natural Buttes field.
The recompletions targeted the Douglas Creek, Black Shale and Castle Peak Limestone-Sandstone formations in Green River at depths of 4,100-4,850 feet. Foothills estimated the possible potential of 35,000 bbl/well of recoverable oil, based on offset analogs as the zones have been productive on adjacent properties.
Producers have shown some recent interest in the Uinta Basin. In addition to Foothills' moves,Tesoro Corp. and EP Energy Corp. announced a joint venture earlier this year to fund oil and natural gas development in the play.