Disappointing Drills

A third well, completed earlier this year, is still being tested, he said. It had nearly blown out in an earlier attempt, and ended up swallowing a drill pipe whole. The second attempt, with a pipe “sidetracked” into the well, has produced merely 500,000 cubic feet of gas, and not consistently. A fourth well, meanwhile, also completed earlier this year, came up a mix of water and gas — it’s been hooked up to PG&E’s pipeline, Moran said, but produces just small volumes of gas.

The only solid commercially producing well, so far, is the Christiansen well, drilled in 2006. It taps into shallow sandstones already proven to produce gas elsewhere in the region, and was averaging about 340 million cubic feet a day in early 2008, according to Foothill’s website.

Moran said its financial troubles won’t affect the company’s operations in the Eel River Valley. The people who leased their mineral rights to Foothills will still get their annual lease payments, he said. Those lucky few who sit on top the Christiansen well are still getting their royalties. And the company is still planning to explore the rest of the valley where that seismic study drummed up potential prospects.

“We’re trying to get back in compliance [with the loan],” Moran said. “We’re putting together a plan. And we’ll probably bring in a partner to pursue some of those prospects.”

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