Foothills Resources, Inc. Commences Natural Gas Production From Vicenus 1-3 Well in California

Foothills Resources, Inc. Commences Natural Gas Production From Vicenus 1-3 Well in California

Foothills Resources, Inc. announced that commercial production has started from the Foothills California Vicenus 1-3 well in the Grizzly Bluff natural gas field in Humboldt County, California. The well was placed on production on January 15, 2007 and has been producing at daily rates between 30,000 and 180,000 cubic feet of gas and 20 barrels of formation water.

The Vicenus 1-3 well reached total depth of 5,747 feet on August 12, 2006. Logs and a significant gas kick verified the presence of natural gas in the primary objective sands in the Lower Rio Dell Formation. As a result of the gas kick, a portion of the lower section of the hole which contained a highly productive gas zone had to be cemented back and could not be included in the final completion. A slotted liner was set across indicated pay zones in the interval between 5,700 feet to 4,300 feet and the well tested over a ten-day period at daily flow rates from 50,000 to 500,000 cubic feet and 25 barrels of formation water.

The well was shut in after the initial testing and additional facilities were installed to treat the produced water. Regulatory approval to dispose of the produced formation water was received January 8, 2007 and production testing resumed on January 15, 2007. Vice President of Engineering Mike Moustakis commented, “Initial production characteristics suggest that the installation of a plunger lift system should aid in the removal of wellbore fluids and increase gas production. We have installed this system and are currently fine-tuning its operation.”

Foothills President John Moran stated, “We are pleased that the Vicenus 1- 3 well is now on production, which completes another requirement of the project earning obligations. We plan to test the high potential gas zones encountered at the bottom of the well in our future drilling. Importantly, the locations of new wells at Grizzly Bluff are expected to be based upon the 3D seismic survey which was completed January 19, 2007. The seismic data is now being processed and will be interpreted prior to commencing drilling operations this summer.”

Mr. Moran also noted, “Water production, which reduces gas production, is not common in Eel River Basin and we believe it may be sourced from a fault zone that was cut in the Vicenus well. Production rates from future wells with a modified completion are anticipated to be more analogous to three adjacent wells where rates as high as 5 million cubic feet of gas per day were achieved when drilled and tested in 1964. These wells were later abandoned due to lack of gas market at the time.”

Also at Grizzly Bluff, the Christiansen 3-15 well continues to perform very well with stable daily gas production in excess of 500,000 cubic feet.

About Foothills Resources, Inc.

Foothills Resources, Inc. is a growth oriented independent energy company engaged in the acquisition, exploration, exploitation and development of oil and natural gas opportunities. Its present business activities commenced in April 2006, following the concurrent completion of a merger transaction and a private placement financing.

Our business strategy is to identify and exploit low-to-moderate risk resources in and adjacent to existing or indicated 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. We will also take advantage of our expertise to develop exploratory projects in focus areas and to participate with other companies in those areas to explore for oil and natural gas using state-of-the-art 3D seismic technology. 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 establish and grow the Company.

Additional information on Foothills Resources is available at

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Source: Foothills Resources, Inc.

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