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FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) Files An 8-K Regulation FD Disclosure

FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) Files An 8-K Regulation FD Disclosure
ITEM 7.01. REGULATION FD DISCLOSURE

Foothills Exploration, LLC (the “Company”), a wholly owned indirect subsidiary of Foothills Exploration, Inc. (“FTXP”), intends to meet with certain accredited investors during the month of February to review an opportunity being made available in connection with a proposed asset acquisition in the Green River Basin, Wyoming.

The proposed asset acquisition consists of 22 gas wells (the “Gas Wells”) together with approximately 18,000 acres. The Gas Wells are stripper wells with current aggregate production of approximately 900 MCF per day. The asset has infrastructure in-place and delivers gas into the CIG Interstate Pipeline. The asset also comes with a contract that allows selling gas to a coal mine for approximately $2.50/MMBtu. The acreage position consists of approximately 14,584 acres, which the Company has identified as core. The Company believes that the purchase price of the asset, if obtained and closed, can be viewed as being at a discount to total Proved Developed Reserves PV-9 value of $2,207,000 (at $3.00 natural gas prices). The Company made a nonrefundable deposit on the asset.

The assets are reported to have a total of 3.4 billion cubic feet (BCF) of Net Proved Developed Producing Gas Reserves and 4.1 BCF of Proved Undeveloped Reserves, with an undiscounted value of about $3,547,000. There are also seven Proved Undeveloped locations (consisting of 4 “new drills” and three recompletions). If closed, the Company believes that future upside development potential amounting to about 4.1 BCF in PUD Reserves may be unlocked, depending on the availability of funding or joint venture partners, as to any of which no assurance can be given. Approximately 80% of the 18,000 gross acres remains unexplored. The Company believes that 17 of the Gas Wells have the potential to be optimized, which could result in production increases of up to 50% from current levels of production. The acreage is subject to certain depth restrictions. The assets currently generate gross revenues of over $1,000,000 annually before royalties, interest, taxes, and lease operating expenses. The Company anticipates initial operating margins of about 42%, which may be subject to increase pending further investment and implementation of possible operating efficiencies.

The Company will look to finance the acquisition through a combination of (i) convertible debt, (ii) equity, which may consist of shares of common stock and warrants to purchase shares of common stock, as well as (iii) joint ventures or partnerships with investors upon terms to be finalized. No assurance can be given that the Company can complete the acquisition.

This investor overview provided by FTXP contains estimates and forward-looking statements including, among others, statements regarding FTXP and the Company’s future business plans, production results, natural resource price forecasts, and other future events. You should not place undue reliance on forward-looking statements, as they involve known and unknown risks and uncertainties that are, in some cases, beyond the Company’s control and could cause actual results to differ materially from the information expressed or implied. Factors that could materially affect actual results are described in detail in the Company’s recent Securities and Exchange Commission filings. FTXP undertakes no obligation to revise or update forward-looking statements to reflect future events or circumstances.

The information contained in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by reference in such a filing.

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.

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