California-based Foothills Exploration Inc. plans to acquire natural gas wells and acreage for production and development in Montana’s Stillwater and Golden Valley counties covering 5,769 acres and 12 shut-in wells.
In addition, Foothills said it would acquire associated pipelines, gathering systems, compression/processing facilities, as well as related yards and equipment.
“This acquisition will complement a previously announced proposed acquisition under agreement, which is expected to close around the end of August,” said CEO Kevin Sylla. “Both acquisitions are shallow gas properties with depths of less than 2,500 feet, with relatively low development costs.”
The name of the seller and terms of the deal were not disclosed.
Foothills plans to bring the shut-in wells online and begin assessing the acreage for in-field development. The independent producer’s strategy consists of targeting adjacent oil and gas properties that are “underdeveloped,” Sylla said.
In March, Foothills completed the acquisition of 16,387 acres in Wyoming’s Wind River Basin from American Shale Energy LLC. That month it completed a separate deal to acquire 22 natural gas wells and 18,214 acres, also in Wyoming, from an undisclosed seller.
Two years ago Foothills acquired from an undisclosed party a 21% working interest in a pair of horizontal wells in Utah’s Uinta Basin that were operated by EOG Resources Inc.
Foothills focuses primarily on acquiring dislocated and under-exploited production and development properties, as well as oil and gas exploration, in the U.S. Rockies.