Wells in Oklahoma will bring significant income to Foothills Petroleum

Feb. 13 (UPI) — U.S. oil and gas company Foothills Exploration said Monday that the revenue stream from newly acquired wells in Oklahoma should be more than half of what was generated in the first half of 2022.

According to Foothills, they are divided into four rental areas. it closed to acquire 21 oil and gas wells in southwest Oklahoma under undisclosed terms.

Oklahoma is home to the Anadarko Shale Basin, a mid-range oil and natural gas producer. The federal government said 2021 saw Oklahoma’s biggest net decline in proven reserves of crude oil and condensate, an ultra-light type of oil found in many shale plays.

Oil production for February should be about 442,000 bpd at Anadarko, compared to 5.6 million bpd expected from the Permian Basin, the country’s largest domestic oil producer.

Foothills said it was targeting the Granite Wash Basin, a nature reserve nestled in the wider Anadarko Shale. Production should be small, but relatively profitable for the company.

“Based on baseline projections and an oil price of $75, the company expects to generate $432,000 in revenue (after royalties but before field costs) from these facilities over the next 12 months,” the company said. companies.

West Texas Intermediate, the US oil price benchmark, traded at around $79 a barrel early in the session on Monday.

That’s a significant revenue stream for the company, which reported gross revenue of just $739,000 for the six-month period ending June 30. During the same period in 2021, Foothills grossed just $262,000.

Oklahoma has five refineries with a combined refining capacity of 522,000 barrels per day, about 3% of total US refining capacity. As of 2020, it held about 4% of the nation’s total proven crude oil reserves.

Similar to recent seismic activity in and around the Permian Basin in Texas, Oklahoma witnessed regular but minor earthquakes associated with oil and gas exploration and production a few years ago.

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