Foothills Resources, Inc. (fka FTRSQ)

[crable]

FTRS News

Foothills Resources, Inc. Updates Operational Activities

Oct 28, 2008 08:30:00 (ET)


BAKERSFIELD, Calif., Oct 28, 2008 /PRNewswire-FirstCall via COMTEX/ -- Foothills Resources, Inc. (FTRS, Trade ) (the "Company") today provided an update on activities in its primary operating areas in the Texas Gulf Coast and the Eel River Basin in Humboldt County, California.

Texas

Production from the Goose Creek, Cleveland and Saratoga oil fields is currently averaging about 560 barrels of oil and oil-equivalent natural gas per day ("boepd") net to the Company (750 boepd gross), which is above pre-Hurricane Ike levels. Although the eye of Hurricane Ike passed directly over the Goose Creek Field, the Company's facilities suffered relatively minor damage. That damage has been repaired although the Company's production from its Texas fields was completely shut down for about two weeks due to the extensive power outage in the region.

Following the hurricane, Foothills' efforts were focused towards servicing wells and restoring production. The Company is now recommencing the ongoing program of recompletions and major workovers in existing wells, which will carry on through the remainder of 2008.

With regard to the current downturn in the price of crude oil, approximately 70% of the Company's current oil production is hedged at an average price of about $71 per barrel, which will help augment the Company's near term cash flows in this lower crude price environment.

California

In the Grizzly Bluff Field, the Company is currently in the process of hooking up the GB 4 well to allow further testing of the Lower Rio Dell horizons into the gas sales pipeline. It is anticipated that this well, which was drilled earlier in 2008, will be produced intermittently as conditions warrant while the Company attempts to remediate suspected formation damage. Foothills is also producing the Vicenus 1-3 well, completed in June 2008, on an intermittent basis. Production from the Christiansen 3-15 well completed in September 2006 is stable at a rate of approximately 170 thousand cubic feet of gas per day ("mcfpd") net to the Company (300 mcfpd gross).

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. Additional information on Foothills Resources is available at http://www.foothills-resources.com .