Fellows Energy Mobilizes for Workover on Second and Third Carbon County Wells to Increase Production
Tuesday June 6, 11:00 am ET
Company Appoints Experienced Financial Executive to Board of Directors to Support Growth
BROOMFIELD, Colo.--(BUSINESS WIRE)--June 6, 2006--Fellows Energy Ltd. (OTCBB:FLWE - News), an oil and gas company focused on exploration and production in the Rocky Mountain Region, announced today that it has completed preparations and has mobilized equipment to perform workovers on the second and third wells in the 5,953-acre Carbon County project in Utah. Workover operations are scheduled for June 6 through 19 on those wells, after which the rig will move to begin workover operations on the second and third wells on the Creston project in the Uinta Basin in Utah. Fellows anticipates having use of the workover rig on a full-time basis as needed for both projects, and is currently negotiating to acquire a new drilling rig with the capability to drill to the depths that will be needed for the new wells in Carbon County and for its other projects.
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Fellows anticipates increased production to result from the workovers of the Carbon County wells, to be followed by drilling of up to 20 new wells on the project acreage. These are the first in many steps aimed at increasing production.
At Creston, the Company has established stabilized production in the first of its 45-well Creston project following the installation of a variable speed drive. Fellows plans workovers on the next wells to commence on or about June 19, to be followed immediately by workovers on additional wells in the project using the same workover rig. The program wells are predominantly located in the Altamont-Bluebell Field.
The Company also announced today the appointment of Viraj Patel as a member of its Board of Directors. Mr. Patel has significant experience in the finance and banking industries, most recently with Fifth Third Bank, NA in Boca Raton, Florida, where he has worked to arrange commercial and real estate loans of up to $200 million in size. He has also developed relationships with a number of private investors in the energy industry, and will assist the Company in its ongoing activities in joint venture and private investor financing. Mr. Patel is a graduate of Dartmouth College, with a B.A. degree in Economics modified with Engineering.
"We are pleased to have Viraj join our Board, and are excited to work with him to plan and implement our growing production and cash flow and explore on all of our 230,000 acres," said Fellows' president, George Young. "Viraj will help us access private capital on favorable terms to compliment the $5.25 million we have recently raised from joint venture and private sources. With a full-time workover rig at our disposal, we now expect to complete our workovers and increase our production at a much faster pace. We are working now to obtain additional drilling rigs and equipment to follow the workover operations with drilling on a number of our other projects."
About Fellows Energy Ltd.
Fellows is an early stage oil and gas company led by an experienced management team focused on exploration and production of natural gas and oil in the Rocky Mountain Region using traditional and new technologies. Current strategy is to pursue both short- and long-term opportunities to leverage the 230,000 acres of current assets that management believes are characterized by reasonable entry costs, favorable economic terms, high reserve potential relative to capital expenditures and the availability of existing technical information. For additional information, please go to www.fellowsenergy.com.
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 800-SEC-0330.
