Fellows Energy Commences Downhole Operations in the Uinta Basin and Progresses in the Acquisition of the Carbon County Producing Gas Field Tuesday December 27, 9:23 am ET
BROOMFIELD, Colo.--(BUSINESS WIRE)--Dec. 27, 2005--Fellows Energy Ltd. (OTCBB:FLWE - News; "Fellows") announced today the following progress on its Uinta Basin and Carbon County projects: ADVERTISEMENT
Creston Project
Fellows announces that downhole operations at its Uinta Basin project have commenced to commingle production from the Upper Green River and Wasatch formations in the first wellbore of its up to 45-well program. Following testing which determined that the wellbore is in sound condition, Fellows began the drilling operations necessary to return the Wasatch Formation to production. Fellows will also recomplete the well in the Lower Green River formation, allowing the well to produce from all three horizons. The pumping unit has been delivered to the site, and surface facilities construction is underway. It is expected that production will recommence in as few as 10 days.
The initial well will tap the potential of the three previously tested and produced zones. New completions in never before perforated pay zones will also be accomplished. The additional zones will provide a further increase in daily production potential over results obtained previously. Gas transportation and sales facilities have been installed and a gas sales contract is in place. Evaluation of the next wells to be returned to production in the 45-well program continues concurrently.
Fellows has arranged for the participation by industry partners in the field with the contribution of $1,500,000 for project expenses. Final details are being prepared for the participation arrangements. Fellows intends to continue field operations continuously until up to 45 wells have been reworked and recompleted. Fellows projects net revenues in excess of $9 million over and above drilling and field expenses from this program in 2006, with increases over that level in 2007 and beyond.
Carbon County Project
Fellows has negotiated an extension in its option agreement to purchase the 5,953-acre Carbon County project until January 31, 2006. Further analysis of the productive potential of the project has been conducted, following the receipt of a favorable engineering study by Sproule & Associates. Current production is approximately 30 million cubic feet of gas per month, which is marketed into the adjacent gas pipeline operated by Questar Gas Resources. Production is derived from the Ferron Sandstone formation, a source of substantial production in the adjacent Drunkards Wash field operated by ConocoPhillips. Fellows believes from its analysis that it can significantly increase production from the wells currently in production and reinitiate profitable production in the six shut-in wells. Fellows also believes that the field has potential for 20 additional productive wells on 160 acre spacing on the undeveloped acreage. The property is adjacent to Fellows' Gordon Creek project and to the very successful Drunkards Wash field, which was originally developed by River Gas Corp, including some of Fellows' personnel.
Fellows has entered into an exclusive arrangement with Corporate Development Capital, Inc. for the completion of the financing of the balance of the purchase price and for the initial drilling capital for the additional wells. Fellows expects the financing to close on or about January 15, 2006, with the participation of a number of industry financing sources.
About the Uinta Basin
The Uinta Basin of Utah is currently one of the most active oil and gas producing areas in the onshore United States. The majority of activity in the basin is focused on the Wasatch and Green River formations, which are the primary producing formations in the Altamont-Bluebell Field. Fellows believes that the large areal extent, both horizontal and vertical, of hydrocarbon occurrence in the Uinta Basin makes for a lower risk project than exploration in unproven areas.
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 has interests in over 500,000 acres of oil, gas and coal bed methane rights, including interests in the Weston County and Carter Creek projects in Wyoming, the Gordon Creek and Overthrust projects in Utah, the Kirby and Castle Rock Projects in Montana, and the Bacaroo project in Colorado.
Fellows recently completed its option under an Exploration Services Funding Agreement with Thomasson Partner Associates, Inc. of Denver, Colorado under which it will continue with project evaluation and acquisitions. Fellows has the first right to projects generated by Thomasson for up to a 100% basis on projects selected. Projects recently acquired by Fellows include the Bacaroo, Gordon Creek, Weston County, Platte, Badger and Carter Creek.
The agreement calls for TPA to present to Fellows an average of eight (8) projects per year with an area of interest of 10,000 to 80,000 acres per project with 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).
As new projects are acquired, Fellows will add diversity to the interests previously optioned.
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 be successful or 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. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions; availability of capital; unfavorable geologic conditions; the complexity of coal bed methane exploration and production; and prevailing prices for natural gas and general regional economic conditions. Fellows assumes no obligation to update the information contained in this press release.
Contact: Fellows Energy Ltd. George S. Young, 303-327-1525 or Shane Reeves, 303-327-1525
-------------------------------------------------------------------------------- Source: Fellows Energy Ltd.
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might be turning upward... looks to me like MMs taking it down a tick right now to load up, then we're off bouncing hopefully... supposed signals just thrown: - 200 (i need shares but don't take down pps) followed by... - 300 (take down pps to get shares)
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Fellows Energy Sets Closing of March 9 for Purchase of the Carbon County Project Mar 1, 2006 9:59:00 AM Copyright Business Wire 2006 BROOMFIELD, Colo.--(BUSINESS WIRE)--March 1, 2006--
Fellows Energy Ltd. (OTCBB: FLWE) ("Fellows") announced today that it has set the date of March 9, 2006 with the seller to close the purchase of the Carbon County project, which includes three producing gas wells, currently producing a total of 25 - 30 million cubic feet of natural gas per month. The project also consists of five shut-in wells, together with an associated gas gathering system and 6 mile pipeline and a gas gathering company and associated system located in Central Utah. Fellows is completing a comprehensive title due diligence and other pre-closing diligence review matters and closing documentation for the purchase of the 5,953-acre project. Gas is marketed into the adjacent pipeline operated by Questar Gas Resources. The acquisition price and terms have been held confidential pending closing.
Production is derived from the Ferron Sandstone formation, a source of substantial production in the adjacent Drunkard's Wash field operated by Conoco/Phillips. The Drunkards Wash field was originally developed by River Gas Corporation. Fellows' Vice President of Operations, Steven Prince, previously served as Operations Manager on the Drunkard's Wash project for River Gas Corporation during much of the period in which that field was developed, and was involved in the drilling, completion, and production operations for over 200 wells in that field.
A favorable reservoir engineering study has been completed by Sproule & Associates of Denver, Colorado. Sproule reported that production from the existing three producing wells can likely be significantly enhanced through operating improvements and that the five shut in wells also have potential to be brought into production. Sproule also concluded that the acreage contains potential for an additional 20 producing wells on 160-acre spacing, and total proven, probable and possible reserves of 20 billion cubic feet.
Fellows believes from its analysis that it can significantly increase current production in the three producing wells and initiate profitable production in the five shut-in wells. Fellows also believes that the 20 additional well sites can be drilled and produce gas from the Ferron formation in excess of the production rates currently experienced in the existing wells.
About Fellows
Fellows combines a seasoned management team with exploration targets focusing on coal bed methane, shallow gas and oil and gas potential.
Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that Fellows will acquire the rights described in this press release or that 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 be successful or 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. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions; availability of capital; unfavorable geologic conditions; the complexity of coal bed methane exploration and production; and prevailing prices for natural gas and general regional economic conditions. Fellows assumes no obligation to update the information contained in this press release.
Source: Fellows Energy Ltd.
---------------------------------------------- Fellows Energy Ltd. George S. Young or Shane Reeves 303-926-4415
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so why won't this move? decent volume, at a bottom, decent news... i want to ditch this bag, and at the same time i think i want to hold it, as i think it could see .5-.6 sometime in the not-too-far future... more with legit news about revenue, but that would probably take wayyyyyy too long... any thoughts? *sigh*
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BROOMFIELD, Colo., Mar 01, 2006 (BUSINESS WIRE) -- Fellows Energy Ltd. (OTCBB: FLWE) ("Fellows") announced today that it has set the date of March 9, 2006 with the seller to close the purchase of the Carbon County project, which includes three producing gas wells, currently producing a total of 25 - 30 million cubic feet of natural gas per month. The project also consists of five shut-in wells, together with an associated gas gathering system and 6 mile pipeline and a gas gathering company and associated system located in Central Utah. Fellows is completing a comprehensive title due diligence and other pre-closing diligence review matters and closing documentation for the purchase of the 5,953-acre project. Gas is marketed into the adjacent pipeline operated by Questar Gas Resources. The acquisition price and terms have been held confidential pending closing.
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March 9th is right around the corner, should be time for FLWE to gain some ground... (assuming the deal gets closed)
BROOMFIELD, Colo.--(BUSINESS WIRE)--March 10, 2006-- Fellows Energy Ltd. (OTCBB:FLWE) ("Fellows") announced today that it has completed all financial and other arrangements for the acquisition and closing of the Carbon County Project, with the final closing now set for Monday, March 13. Fellows will acquire the project jointly with an industry partner, MBA Resources Corp. of Canada ("MBA"). MBA will pay $1.5 million and has arranged third party financing of $1 million toward the $3 million purchase price in exchange for a 50% interest in the project. Fellows previously paid a deposit toward the purchase price and has received production credits since October 1, 2005. Fellows will thus acquire a 50% interest in the project without further payment. Fellows and MBA will form a joint operating company to carry out gas production and drilling operations as well as gas gathering activities for both project gas and adjacent third party production. Sproule & Associates of Denver, Colorado, completed a "Reserve and Economic Evaluation" of the project in October 2005. Sproule reported that production from the three currently producing wells can be significantly enhanced through operating improvements and that the five shut in wells also have potential to be brought into profitable production. Sproule also concluded that the acreage contains potential for up to an additional 20 wells on 160-acre spacing, with total proven, probable and possible reserves of 20 billion cubic feet ("Bcf"). Sproule reported a net present value for the project of $65 million using a 10% discount rate and based on its enhanced "P2" scenario. Under this scenario, Sproule projected net cash flow for the first 12 months of full production in excess of $30 million. "We are pleased to complete the arrangements with MBA to acquire this property without any dilution to shareholders, and we look forward to a strong relationship in the operation of the project," said George S. Young, Fellows' president. "We believe within a short period of time we will be able to increase production significantly. We plan to commence reworking operations immediately on the existing wells and start drilling new well sites in the spring. We also plan to finance with industry partners many of the other projects acquired through our strategic relationship with Thomasson Partner Associates, thus avoiding shareholder dilution on those developments as well." Carbon County comprises 5,953 gross acres (4,879 net acres) with three gas wells currently producing approximately 20 million cubic feet ("Mcf") of natural gas per month as well as five shut in wells, three of which have previously produced. Current production is derived solely from the Ferron Sandstone, and none of the wells has yet been completed in the Ferron coals. The acquisition also includes an associated gas gathering system and a six-mile pipeline and compression facility servicing the project and adjacent production. Gas is marketed into the transmission pipeline operated by Questar Gas Resources that crosses the project acreage. Carbon County is an extension of the very successful Drunkards Wash field originally developed by River Gas Corp. and currently operated by Conoco/Phillips. Drunkards Wash currently produces approximately 4 Bcf of natural gas per month from wells completed in both the Ferron Sandstone and Ferron coals on 160-acre spacing covering approximately 65,000 acres. Fellows' Vice President of Operations, Steven Prince, previously served as Operations Manager on the Drunkards Wash project for River Gas and was involved in drilling, completion, and production operations for over 200 wells in that field. Fellows plans to complete wells in both the sandstone and the coals in the project area, since the same coal seams have been prolific producers at Drunkards Wash but have not yet been exploited in the project acreage. Earlier this week, Fellows completed comprehensive title due diligence and other pre-closing diligence review matters and closing documentation for the purchase. Fellows believes from its own analysis and from the Sproule evaluation that it can significantly increase current production in the three producing wells and initiate profitable production in the five shut-in wells. Fellows also believes that many of the 20 additional well sites can be drilled and produce gas from the Ferron formation (sandstone and coals) in excess of the production rates currently experienced in the existing wells.
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.
Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that Fellows will acquire the rights described in this press release or that 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 be successful or 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. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions; availability of capital; unfavorable geologic conditions; the complexity of coal bed methane exploration and production; and prevailing prices for natural gas and general regional economic conditions. Fellows assumes no obligation to update the information contained in this press release.
KEYWORD: NORTH AMERICA COLORADO UNITED STATES CANADA INDUSTRY KEYWORD: ENERGY COAL OIL/GAS MERGER/ACQUISITION SOURCE: Fellows Energy Ltd.
CONTACT INFORMATION: Fellows Energy Ltd. George S. Young, 303-926-4415 Shane Reeves, 303-926-4415
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BROOMFIELD, Colo.--(BUSINESS WIRE)--March 15, 2006-- Fellows Energy Ltd. (OTCBB: FLWE)("Fellows") announced today that it has closed the acquisition of the Carbon County Project together with its new joint venture partner, MBA Resource Corp. ("MBA") effective March 13, 2006. Carbon County comprises 5,953 gross acres (4,879 net acres) with three gas wells currently producing approximately 20 million cubic feet ("Mcf") of natural gas per month as well as five shut in wells, 3 of which are previous producers. Current production is derived from the Ferron sandstone. The Carbon County acquisition also includes an associated gas gathering system and a 6-mile pipeline and compression facility. Gas is marketed into the transmission pipeline operated by Questar Gas Resources, which crosses the project acreage. George Young, President of Fellows Energy, stated that "the purchase of the Carbon County project represents a rare opportunity to acquire both existing production and the infrastructure necessary to generate immediate cash flow. Much of Carbon County's 6,000 gross acres are immediately adjacent to our 5,000 gross acre Gordon Creek project. Both Carbon County and Gordon Creek are contiguous with Drunkards Wash, the very successful field operated today by Conoco-Phillips. Notably, no wells at Carbon Country have yet been completed in the Ferron coals which have produced natural gas at Drunkards Wash." Fellows and MBA are completing plans for the initial reworking program and a preliminary budget of $215,000 has been formulated for the first two wells to be reworked, one producing well and one shut-in well. Sproule & Associates of Denver, Colorado, completed a "Reserve and Economic Evaluation" of the project in October 2005. Sproule reported that production from the three currently producing wells can be significantly enhanced through operating improvements and that the five shut in wells also have potential to be brought into profitable production. Sproule also concluded that the acreage contains potential for up to an additional 20 wells on 160-acre spacing, with total proven, probable and possible reserves of 20 billion cubic feet ("Bcf"). Fellows believes from its own analysis and from the Sproule evaluation that it can increase current production in the three producing wells and initiate profitable production in the five shut-in wells. Fellows also believes that some of the 20 additional well sites can be drilled and produce gas from the Ferron formation (sandstone and coals) in excess of the production rates currently experienced in the existing wells.
About Fellows
Fellows combines a seasoned management team with exploration targets focusing on coal bed methane, shallow gas and oil and gas potential.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 0-33321, available from us at 370 Interlocken Boulevard, Suite 400 Broomfield, Colorado 80021. You can also obtain this form from the SEC by calling 1-800-SEC-0330. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.
Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that the projects 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 be successful or 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. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions; availability of capital; unfavorable geologic conditions; the complexity of coal bed methane exploration and production; and prevailing prices for natural gas and general regional economic conditions. Fellows assumes no obligation to update the information contained in this press release.
KEYWORD: NORTH AMERICA COLORADO UNITED STATES INDUSTRY KEYWORD: ENERGY OIL/GAS MERGER/ACQUISITION SOURCE: Fellows Energy Ltd.
CONTACT INFORMATION: Fellows Energy Ltd. George S. Young, 303-926-4415 or Shane Reeves, 303-926-4415
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