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Foothills Resources, Inc. Updates Drilling and Operations Activities on Texas, California and Oklahoma Properties

Posted on: Wednesday, 7 November 2007, 09:00 CST

BAKERSFIELD, Calif., Nov. 7 /PRNewswire-FirstCall/ -- Foothills Resources, Inc. (BULLETIN BOARD: FTRS) today announced drilling and production results from its first new development well in Texas, as well as commencement of drilling activities in the Eel River Basin of California.

Texas

Foothills' first new development well in the Goose Creek Field has been placed on production at a pumping rate averaging about 35 barrels of 30 degrees API gravity oil per day. The Simms-Sweet #62 well was drilled to a total depth of 4,600 feet and electric logging revealed more than 130 feet of net oil pay in multiple horizons between 4,480 feet and 1,050 feet. Production casing was run in the well and an indicated new pool accumulation in the upper Frio was perforated, from which production has been initiated. Foothills has a working interest of 100% and a net revenue interest of 75% in the well.

The drilling unit then moved to the Simms-Schilling lease and drilled a produced-water disposal well to a depth of 6,000 feet as planned. Increasing water disposal capacity is an important element of the Company's strategy to increase oil production because production from some wells has been curtailed due to constraints on water handling capacity. Completion operations are underway. This well also identified several oil zones in the shallow section that were previously thought to have been depleted. Over the next several months, the Company plans to determine how best to develop these horizons.

The drilling rig has moved to the A. Gaillard lease and is preparing to spud the next development well.

The Company's current net daily production from the Texas oil fields is averaging approximately 620 barrels of oil and oil-equivalent gas per day.

California

Foothills has also commenced its planned 2007 drilling activities in the Grizzly Bluff Field in Humboldt County in northern California. The Kenai 38 drilling rig moved onto location at the Vicenus 1-3 well in the Grizzly Bluff Field on November 5, 2007, and has started the previously announced deepening activities. The objective is to redrill a deeper zone in the Lower Rio Dell (LRD) formation, from which strong natural gas shows were recorded when drilled by Foothills in 2006. At that time, the well had to be plugged back and completed in shallower LRD gas-bearing zones.

Following the Vicenus deepening program, the Company intends to drill three more wells to continue the development and delineation of the Grizzly Bluff Field. The first of these wells is expected to be drilled to 4,200 feet to twin a well drilled in 1964 that tested natural gas from the Lower Anderson horizon but was plugged and abandoned due to lack of a commercial market for natural gas in the area at that time. This well is expected to be followed by the much anticipated Grizzly Bear exploration / delineation well which we propose to drill to a total depth of about 9,300 feet to explore the high potential of the deeper formations underlying the Grizzly Bluff Field. These formations were indicated to be gas-bearing in a deep well that was drilled by a predecessor of Chevron exploring for oil on the Grizzly anticline in 1971.

Following the Grizzly Bear well, the Company plans to drill a development well in the western sector of the Grizzly Bluff Field near the GB-1 well. The GB-1 was drilled in 1964 and tested natural gas over a four-day period at an average rate of 5 million cubic feet per day from LRD zones. This well was also ultimately abandoned, as were others in the area, due to lack of a commercial gas market at that time.

Natural gas production from the Foothills-operated portion of the Grizzly Bluff Field continues to perform to our expectations. The Company's net production currently averages about 315,000 cubic feet per day.

Oklahoma

Six prospects have been identified by geologic and geophysical mapping of Foothills' 3D seismic project in the Anadarko Basin. Four of these have open acreage and the Company has signed its first oil and gas leases on one of the prospects. Foothills has begun the preparation of technical information materials as part of its efforts to secure partners on a promoted basis as the Company moves forward on this project.

Management Comment

Foothills President John Moran said, "We are pleased to have drilling activity underway in both of our core areas. We were very pleasantly surprised by the net oil pay seen in the Simms-Sweet #62 well at Goose Creek Field, which exceeded our expectations, and also to have identified additional oil zones in the water disposal well. You've got to love these old fields. The old adage that the best place to look for oil is where it has already been found has proven to be true again."

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.

Foothills Resources, Inc.

CONTACT: Dennis B. Tower, Chief Executive Officer, or John L. Moran,President, or W. Kirk Bosche, Chief Financial Officer, all of FoothillsResources, Inc., 1-888-662-3877

Web site: http://www.foothills-resources.com/

Source: PRNewswire-FirstCall

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