Foothills Exploration Inc. in December entered into a participation agreement with Magna Operating LLC for the Labokay prospect, which covers 240 acres in Calcasieu Parish, Louisiana.
The company said that Labokay is an amplitude versus offset oil (AVO) play in southwestern Louisiana targeting the Frio Nododaria Blanpiedi Sand.
The agreement between the companies established an area of mutual interest for five years and provides Foothills with access to all of Magna’s 3D seismic data, including interpretations and AVO data relating to the lands within the area of mutual interest.
Foothills said it will earn 100% working interest before payout for drilling the well, and Magna Operating will back in for a 20% working interest after payout.
“We’re pleased to have reached an agreement with Magna Operating, which establishes a beachhead for the company in the Gulf Coast through development and operation of this asset,” Foothills CEO B.P. Allaire said in a statement.
Foothills Petroleum Operating, an indirect wholly owned subsidiary of the company, will drill a test well to a total measured depth of 8,575 feet and true vertical depth of 8,190 feet and will also operate the project.
Foothills said that three offset analogue wells nearby produced a total of 1.9 million barrels of oil from the same Frio trend 3D seismic data set that Devon Energy acquired in 2012, which was reprocessed in 2016.