Foothills Prepares for Production Tests on Grizzly Bluff

Foothills Resources, Inc.

Foothills Resources, Inc. said that its first well in the previously announced drilling program in the Grizzly Bluff natural gas field in the Eel River Basin in Humboldt County, Calif., has reached a total depth of 4,815 feet. The company added that production testing preparations are nearing completion.

Preliminary results obtained from the Foothills California, Inc. Christiansen 3-15 well, together with an in-depth analysis of electric log data and surveys obtained from the well, indicate the well has encountered natural gas from the primary objective zones between 3,600 and 3,900 feet. Well completion and production equipment are being sourced, and it is expected that the well will be ready for production testing in the next several weeks.

"I am very pleased with the results from the well that we have seen so far and I am looking forward to getting this first Foothills-operated well on commercial production,” said Dennis Tower, Foothills’ CEO.

Two wells will be drilled in this initial program, which is expected to be completed in July. The second well, Foothills Vicenus 1-3, will be drilled to a depth of 5,900 feet and will be situated approximately 1 mile west of the Foothills Christiansen 3-15 well. The Vicenus well will be located about 1,000 feet southeast of a well that was drilled in 1964 and that tested 2.5 million cubic feet of gas per day. The Vicenus 1-3 will test the same zones as this old abandoned well (which was never produced commercially because of the lack of a gas market) plus prospective deeper zones.

Both Foothills wells will be drilled from existing well pads from which gas pipeline connections are already in place. Natural gas sales are expected to commence almost immediately after the wells are tested and completed.

Foothills Resources, Inc. is an oil and gas acquisition, exploration, and production company headquartered in Bakersfield, Calif. Its present business activities commenced in April 2006, following the concurrent completion of a reverse merger transaction and a private placement financing.