FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement
On December 12, 2016, Foothills Exploration, Inc., (the Company
or FTXP), entered into a participation agreement with Magna
Operating, LLC, a privately held Houston-based independent
exploration and production company (Magna Operating), in relation
to the Labokay prospect, covering approximately 240 acres in
Calcasieu Parish, Louisiana.
As consideration for an assignment of interest in and to the
leases and the prospect, Foothills Petroleum Operating, Inc., a
Nevada corporation and indirect wholly-owned subsidiary of the
Company (FPOI), was obligated to tender to Magna Operating the
purchase price in the amount of $144,000. This amount covers
FPOIs share of the land, lease, and administrative costs that
Magna Operating incurred in generating and assembling the Labokay
prospect as of November 15, 2016. As further consideration for an
assignment of working interest in and to the leases, FPOI agreed
to participate in the cost, risk, and expense of drilling the
Labokay test well.
FPOI will drill a test well and also will operate the Labokay
project. The prospect is updip to the Samson #1 Labokay Corp 5
well, which had 14 feet of oil pay, produced 20,000 barrels of
oil and 23,000 Mcf gas and tested 216 barrels oil per day and 28
Mcf gas per day in 2011.
The participation agreement establishes an Area of Mutual
Interest (AMI) between the parties for a period of five years and
provides FTXP with access to all of Magna Operatings 3D seismic
data, including interpretations and amplitude versus offset (AVO)
data relating to the lands within the AMI. Under the agreement,
FPOI will earn 100% working interest before payout and Magna
Operating will back in for a 20% working interest after payout.
The foregoing is an outline of the terms and conditions of the
participation agreement and is qualified in its entirety by
reference to participation agreement attached hereto as Exhibit
10.1.
Item 8.01Other Items
On December 15, 2016, the Company issued a press release
announcing the execution of participation agreement. A copy of
the press release entitled Foothills Exploration, Inc. Announces
Participation Agreement with Magna Operating, LLC is attached to
this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 |
Participation Agreement between registrant and Magna Operating, LLC |
|
| 99.1 | Press Release issued by the registrant on December 15, 2016. |
About FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP)
Foothills Exploration Inc, formerly Key Link Assets Corp., is a shell company. The Company’s business plan is to acquire small and medium grocery stores in non-urban locales that are not directly served by large national supermarket chains. The Company plans to acquire grocery stores that are approximately 15,000 to 20,000 square feet in size. The Company seeks to drive additional customer traffic to its acquired grocery stores and expand their operating margins through the introduction of new products and services to those stores that lack them, including pharmaceutical services, floral departments, gasoline and other automotive products, prepared foods, lottery service and alcoholic beverages. The Company’s stores will sell non-perishable, perishable and non-food products. The products include various categories, such as grocery, frozen and dairy; produce; meat and seafood; bakery; floral; beer, wine and spirits, and health and beauty care. FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) Recent Trading Information
FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) closed its last trading session up +0.03 at 2.01 with 200 shares trading hands.
