Foothills Exploration, Inc. provided an operations update. Illinois Basin: Rework operations have commenced on the Charles Bland #2 for stimulation operation targeting the Upper McClosky Lime and Aux Vases formation. The workover operations in the Cinse area encompass a total of 3 wells for acid stimulation procedures to increase production.

The wells involved are the Charles Bland #1, Charles Bland #2, and the Johnson Trust #3. The Bland #1 and Johnson Trust #3 will be stimulated by acidizing the Lower McClosky, Middle McClosky and Aux Vases formations. These rework operations are expected to add 10-15 barrels of oil per day of gross production to the properties' overall production profile. Estimated payback for these rework operations is 90 days.

These marginal well improvements are the most cost-effective way of adding production. Rockies and Mid-Continent Expansion:The return-to-production and well stimulation program has been extremely successful so far and as such the Company plans to continue to aggressively seek similar partnerships with other established operators in the Rockies and midcontinent, where the Company can provide its expertise and capital in exchange for up to 75% working interest in the properties and wells. These types of rework operations significantly reduce the Company's cost of production acquisition.

The Company has two strategic partnership agreements to pursue lands and return-to-production opportunities in the Illinois and Williston basins. The Company is also now targeting marginal and stripper well production to optimize in Oklahoma and seeking similar underdeveloped and underexploited properties with upside potential.