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
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SOURCE Foothills Resources, Inc.