Foothills Resources, Inc. Announces Well Tests in California Company to Initiate Commercial Production In the Upper Section of the Lower

Rio Dell Formation



    BAKERSFIELD, Calif., June 13 /PRNewswire-FirstCall/ -- Foothills
 Resources, Inc. (OTC Bulletin Board:   FTRS) (the "Company") today announced
 the results of production testing on its GB 4 well in the Eel River Basin
 in Humboldt County, California. The Company reported that the well flowed
 natural gas from multiple zones in the Pliocene age Lower Rio Dell ("LRD")
 formation, and that preparations are underway to initiate commercial
 production from the well.
 
     Mike Moustakis, Vice President -- Engineering of Foothills Resources,
 said, "We are excited that the testing of the GB 4 well has been completed
 and production hookup is underway. We expect production to commence
 immediately after the installation of a 1,600 foot gathering line to
 connect this well to the existing gas gathering system."
 
     As reported earlier, the GB 4 well had two primary objectives: to
 evaluate the gas zones that tested gas at significant flow rates in the
 Zephyr GB 1 well in 1964, and to drill and test the deeper potentially
 productive sands of the Grizzly Bear prospect which underlies the Grizzly
 Bluff natural gas field.
 
     The GB 4 well reached a total depth of 9,530 feet on March 24, 2008,
 after which electric logs were run and production casing was cemented in
 the hole. A comprehensive testing program commenced on April 15th.
 
     Multiple sands between 4,570 feet and 5,280 feet in the LRD formation
 tested gas at a combined rate in excess of 500,000 cubic feet per day on a
 10/64 inch choke, and are being completed for production. These sands
 correspond to the section in the offsetting Zephyr GB 1 well that tested
 gas at high rates through a slotted liner in 1964. The Zephyr well was
 ultimately plugged and abandoned without being commercially produced due to
 the lack of a viable gas market in the area at that time.
 
     Deeper LRD sands between 5,341 feet and 5,456 feet in the GB 4 well
 showed promising production characteristics, flowing at rates in excess of
 900,000 cubic feet of gas per day but with a substantial amount of water.
 Although these deeper LRD sands will not be completed for production in the
 GB 4 well at the present time because of water production constraints, the
 Company believes the results indicate significant reserve potential that
 will be the subject of additional study and likely future drilling.
 
     The GB 4 well was designed to ensure that the deeper Grizzly Bear
 prospect was comprehensively evaluated. Six separate flow tests
 incorporating 10 different rock units were conducted in zones of interest
 in the Bear River, Pullen and Eel River formations between 6,019 feet and
 9,278 feet. Although excellent gas shows were seen while drilling these
 units and electric logs showed them to be potentially gas-bearing, the
 results from all production flow tests indicated that the formations were
 not sufficiently permeable to produce gas at commercial rates.
 
     John Moran, President of Foothills Resources, said, "While we are
 disappointed in the results of our Grizzly Bear prospect, this is only the
 second well ever drilled to this depth in this basin. We plan to continue
 to evaluate the drilling and testing results to determine if enhanced
 potential in these formations exists elsewhere in the area. We also believe
 the LRD 15 and 16 zones may have significant new reserve potential and
 expect that these zones will be included in our future drilling plans. In
 the meantime, we will continue to develop and exploit the opportunities in
 our Grizzly Bluff gas field and our highly profitable operations in Texas."
 
     About Foothills Resources, Inc.
 
     Foothills Resources, Inc. is a growth-oriented independent energy
 company engaged in the acquisition, exploration, exploitation and
 production of oil and natural gas opportunities in California, Texas and
 Oklahoma. Our business strategy is to identify and exploit low-to-moderate
 risk resources in existing producing areas that can be quickly developed
 and put on production, including the acquisition of producing properties
 with exploitation and exploration potential in these areas. Our management
 will use its extensive domestic and international oil and gas experience
 and our relationship with the well known energy consulting group Moyes and
 Co., Inc. (http://www.moyesco.com) to develop the Company. Additional
 information on Foothills Resources is available at
 http://www.foothills-resources.com.
 
     SEC Filings and Forward-Looking Statements
 
     This press release contains forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1933, as amended, and
 Section 21E of the Securities Exchange Act of 1934, as amended. All
 statements, other than statements of historical facts, included in this
 press release that address activities, events or developments that we
 expect or anticipate will or may occur in the future are forward-looking
 statements. The words "will," "should," "believe," "intend," "expect,"
 "anticipate," "project," "estimate," "predict," "plan" and similar
 expressions are also intended to identify forward-looking statements. These
 forward-looking statements include, but are not limited to, statements
 regarding business strategy and expansion and growth of our business and
 operations. Such forward-looking statements involve assumptions and are
 subject to known and unknown risks and uncertainties that could cause
 actual results or performance to differ materially from those expressed or
 implied by such forward-looking statements. Although we believe that the
 assumptions reflected in such forward-looking statements are reasonable, we
 can give no assurance that such assumptions will prove to have been
 correct. You should also know that such statements are not guaranties of
 future performance and are subject to risks, uncertainties and assumptions,
 including, but not limited to, failing to discover reserves that may be
 extracted on a commercially viable basis, inaccurately estimating oil and
 gas reserves, intense competition, environmental risks and general economic
 conditions including the price of oil and gas. Readers are urged not to
 place undue reliance on these forward-looking statements, which speak only
 as of the date of this release. Should any of these risks or uncertainties
 materialize, or should any of our assumptions prove incorrect, actual
 results may differ materially from those included within these
 forward-looking statements. We undertake no obligation to publicly release
 the result of any revision to these forward-looking statements to reflect
 events or circumstances occurring after the date of this release or to
 reflect the occurrence of unanticipated events. Readers are urged to
 carefully review and consider the various disclosures made by us in our
 reports filed with the Securities and Exchange Commission, which attempt to
 advise interested parties of the risks and factors that may affect our
 business, financial condition, results of operations and cash flows.
 
 
 

SOURCE Foothills Resources, Inc.

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