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.