Foothills Spuds Grizzly Bear Prospect in California

Foothills Resources, Inc. has initiated drilling of its GB 4 well on the deep Grizzly Bear prospect, which underlies the Grizzly Bluff Field in the Eel River Basin in Humboldt County, California.

The upper portion of the GB 4 well will be drilled as a twin to a well drilled in 1964 that tested 5 million cubic feet of gas per day over a four-day period from the intermediate depth Lower Rio Dell formation. A key objective of the GB 4 well is to test the deeper formations below the Lower Rio Dell formation. The Company intends to drill the well to a depth of about 9,300 feet, which should be sufficient to evaluate the good gas shows encountered in the thick Eel River, Pullen and Bear River sandstones in a well drilled in 1971. The wells drilled in the 1960s and 1970s were not put on production and were subsequently abandoned due to the lack of a natural gas market and pipeline connection.

The drilling of the GB 4 well is expected to fulfill Foothills' obligations in its Eel River joint venture and remove existing depth restrictions. Foothills is the operator of the joint venture, will pay 100% of the costs of drilling the GB 4 well, and will retain a 75% working interest in the well.

John Moran, President of Foothills Resources, said, "The Grizzly Bear Prospect is a large structural feature confirmed by 3D seismic interpretation and previous drilling activity that encountered gas in both the shallow and deeper formations. We believe this prospect has the potential to be a major natural gas discovery."