2004-02-06 10:38:15

Fellows Energy Ltd. Signs Agreements on Two New Oil & Gas Projects

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Energy Editors / Business Editors BOULDER, Colo.--(BUSINESS WIRE)--FLWE-- Fellows Energy Ltd. ("Fellows")(OTCBB: FLWE) announced today that it has signed an exploration services funding agreement with Thomasson Partner Associates, Inc. of Denver, Colorado, ("TPA") as part of Fellows' continuing program of acquiring quality projects. Under the agreement, TPA will present to Fellows oil, gas and coal bed methane projects for evaluation by Fellows technical personnel. The agreement calls for TPA to present to Fellows an average of eight (8) projects per year with an area of interest of from 10,000 to 80,000 acres per project. Each project presented must represent a reasonable potential of at least two hundred (200) billion cubic feet of natural gas reserves (200 BCF) or twenty (20) million barrels of oil reserves (20 MMBO). Fellows will have the right under the agreement to acquire a 50% interest in each project presented, with the other 50% to be offered to a major industry partner. The new projects generated from the agreement that will become available to Fellows for acquisition will add to the projects already acquired by Fellows, including the 25,000-acre Johns Valley Project, the 10,678-acre Carter Creek Project and the 19,290-acre Weston County Project, which have been the subject of previous press releases. Founded in 1991 by Dr. M. Ray Thomasson, TPA has successfully provided the oil and gas industry with large scale, exploration and production opportunities. Staffed by a team of over twenty seasoned professionals, experienced in geology, geophysics, petrophysics, engineering and land, TPA is uniquely positioned to develop and thoroughly evaluate top quality projects prior to presentation to Fellows. The use of highly motivated, keenly focused project teams, will assure the high level of quality of the opportunities presented to Fellows. Since inception, TPA has sold seventy projects to industry partners. TPA's primary area of expertise is the Rocky Mountain region. About Fellows Fellows combines a seasoned management team with exploration targets focusing on coal bed methane, shallow gas and low-risk oil and gas potential. Fellows is currently obtaining permits for the first round of wells it anticipates drilling on the Johns Valley Project, a 25,000-acre project in Utah which it believes has the potential to produce coal bed methane. Fellows recently announced that it has received exploration plan approval to commence drilling and is now actively performing drill site surveys along with final permitting activities on the Johns Valley Project. Fellows will mobilize to commence drilling as soon as final permitting is completed. In addition, Fellows recently announced the acquisition of the Carter Creek Project, including a 100% working interest in 10,678 net acres in the southern Powder River Basin which Fellows believes to host a very low risk hydrocarbon project. Based on its analysis of the geologic structure of this region, Fellows expects to find productive sections in the Cretaceous, Niobrara, Turner (Frontier) and Mowry layers, in that several existing wells in the Carter Creek area currently produce oil. Fellows also recently acquired an option to purchase a 100% working interest in 19,290 net acres of oil and gas rights in Weston County, Wyoming. A section of this area, the Weston County Play, is on the east flank of the Powder River Basin. Fellows' management believes that this area has the potential for future significant production of oil from the primary drilling targets that have been identified, the Dakota Channel Sandstone and the Minnelusa Sandstone. In addition, Fellows is actively negotiating on a number of additional projects in the Western United States. Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that the agreement with TPA or the leases that Fellows has recently acquired will increase the value of its shares of common stock, or that Fellows will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will increase the value of Fellows' common stock. This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Fellows assumes no obligation to update the information contained in this press release. Fellows' future results may be affected by its ability to continue to implement its consulting services, its dependence on hiring and retaining qualified professionals, potential fluctuations in its quarterly operating results, its dependence on certain key employees and its ability to timely and effectively integrate the property interests it may acquire. KEYWORD: WYOMING UTAH COLORADO INDUSTRY KEYWORD: ENERGY OIL/GAS SOURCE: Fellows Energy Ltd. CONTACT INFORMATION: Fellows Energy Ltd. George S. Young, 720-308-6109