Foothills Exploration, Inc. provided an update to drilling operations on the Houser-Sears #6 well. Foothills' direct subsidiary, Anaconda Energy reported that its partner, Benchmark Properties, has provided an update on its drilling operations previously announced at the Jasper, Illinois property. These field expansion drilling operations are designed to reveal important data on previously untapped oil in-place reserves.

If successful, its exploration program may indicate a stacked-pay environment with the potential for other wells to be drilled on the leasehold in the future. Foothills' direct wholly-owned subsidiary, Anaconda Energy, owns a 50% working interest in the Houser-Sears #6 well with the remaining 50% interest divided amongst industry partners. The primary objectives were the Aux Vases Sand (2,724'), Upper McClosky Limestone (2,800') and McClosky Dolomites (2,840').

The secondary objectives are the St. Louis Lime (3,150') and Salem Lime (3,308'). Initial results have identified a multitude of zones with economic commercial potential oil reserves.

Below is a summary of the results by zones: The Houser-Sears #6 well was spudded on July 12, 2022, drilled to a total depth of 3,420 feet, and logged. The following is a preliminary summary of this well: Salem Lime: The Upper Salem Lime present in this well correlates to the "Parrish" Salem Oolitic zone that is productive from over 20 well to the southeast and east. This break does not exist in any of the offset wells to the south (Ochs #1 & #2) or either old (4 locations away) pre-1970 Salem tests to the northwest and southwest.

This zone should be evaluated in the future. St Louis Lime: The log data indicates an excellent zone in the Lower St. Louis Lime in this well (3,170-75').

The 15% porosity, permeability and 43% salt water indicate that this interval should produce relatively water free. It somewhat correlates to the Ochs #1 (1,980' to SE). The Ochs #1 has 3.5 feet of 12% porosity and it had an initial production of 36 BOPD (after acid) and produced 2,585 barrels of oil in the first 120 days (21 BOPD average).

Its zone is 25% better on analysis, therefore it intends to test this zone first after running a cement bond log during the completion phase. McClosky Dolomite: This zone has been the primary target of this project and log data indicates 27% porosity, which is excellent for this zone and 42% salt water calculated from an analog well. Should the St.

Louis Lime zone only produce nominal amounts, the parties plan to also open this zone and co-mingle with the St. Louis Lime. Upper McClosky /Rosiclare Lime: This zone was thin (only 3 feet) with low end porosity (8.5%), but it did carry oil shows and is possibly on the "edge" of the previous wells to the west and northwest.

It does correlate to the Sears-Houser #4 to the south, which was making a modest 1.5 BOPD after 65 years until the casing went bad and the parties repaired with a liner last year. The parties plan to open this zone in the future, when the time is right to come uphole for more production. Lower Aux Vase Dolomite: This zone was a complete surprise.

It carried fair oil shows during drilling but the log analysis was exceptional indicating 17-21% porosity and a 44% salt water. This zone has not been produced anywhere within 1 mile of this well and is also difficult to identify in the old 1960 vintage logs on this lease. This represents another future test zone.

Upper Aux Vases Sand: The offset #4 well to the south was thin, but the offset #6 had good oil shows. The PE curve denotes the 2722-33 interval was 30% Lime /70% sand and low permeability with 10% porosity, although it had good oil shows. Going forward, the cement bond log should assist in determining if there exists a bond between this zone and the Lower Aux Vases interval.

The initial results of this zone did not meet its expectations, but will be investigated further in the future. Summary: The Company's local operating partner, Benchmark Properties, believes that the Houser-Sears #6 well has two excellent zones in the St. Louis Lime & McCluskey Dolomite, two possible zones in the Upper Aux Vases and Rosiclare, and two new, unproven zones in the Lower Aux Vases Sand and Upper Salem Lime.

In any case, a successful multi-pay zone well. Completion will commence when surface conditions dry and a rig become available.