Foothills Exploration Inc. is acquiring Uinta-Piceance Basin assets that will bolster its acreage position to more than 100,000 acres in the Rockies, the Denver-based company said May 11.

As part of an agreement with an undisclosed seller, Foothills Exploration will acquire 67,330 gross (49,600 net) acres for an undisclosed amount. The acreage, which is 100% HBP, also includes significant proven reserves and proven undeveloped drilling inventory in the emerging horizontal Mancos Play, according to a company release.

The Uinta-Piceance Basin is located in northeast Utah and northwest Colorado.

Foothills Exploration said the transaction is a continuation of the company's oil and gas roll-up strategy in its core focus area. Additionally, the deal provides Foothills Exploration with a solid footprint in the Uinta-Piceance Basin with several potential bolt-on acquisitions in the immediate area.

Acquisition highlights:

  • 85 total wells;
    • 31 actively producing and 54 shut-in wells;
  • 100% working interest and 87% net revenue interest;
    • Operating working interest in 66 wells;
    • Nonop working interest in 19 wells; and
  • Significant resource opportunity in the Mancos with developing horizontal play, the company said.

In addition, the acquisition includes existing infrastructure and immediate revenue and cash flow to the company.

Foothills Exploration said it has identified several shut-in wells to bring back into production within 90-days post completion of the acquisition, which is expected to close by the end of second-quarter 2017.