Foothills Resources, Inc. Announces Well Tests in California

Company to Initiate Commercial Production In the Upper Section of the Lower

Rio Dell Formation

Jun 13, 2008, 01:00 ET from Foothills Resources, Inc.

    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. ( to develop the Company. Additional
 information on Foothills Resources is available at
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SOURCE Foothills Resources, Inc.