Fellows Energy (fka FLWE)

[SmokingUSA]

Fellows Energy Ltd. Reacquires 50% Interest in Weston County and Gordon Creek Projects
Tuesday July 5, 11:10 am ET
Company to Drill Project Under Joint Venture with JMG Exploration, Inc.

BROOMFIELD, Colo.--(BUSINESS WIRE)--July 5, 2005--Fellows Energy Ltd. (OTCBB: FLWE - News; "Fellows") announced today that it has exercised its option to reacquire its 50% interest in the Weston County and Gordon Creek projects. Under its joint venture agreement with JMG Exploration, Inc. ("JMG") the parties will proceed jointly to drill and place the projects into production.

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The Weston County project is a 19,290-acre project on the east flank of the Powder River Basin. JMG will be the operator for the exploration, permitting and other drilling activities. The Weston County project contains previously identified drill locations based on extensive seismic evaluation targeting the Turner Formation, in near proximity to producing fields. In addition, the parties will target the nearby locations with potential in the Minnelusa and Dakota Formations.

JMG will also drill on the 5,242-acre Gordon Creek project, previously acquired by Fellows from The Houston Exploration Company (NYSE: THX - News). The Gordon Creek project is in an area of known coal resources in Carbon County in eastern Utah near other operating coal bed methane projects, such as the Drunkard's Wash Project, which Fellows' project personnel successfully drilled previously for River Gas Corporation.

"We continue to rapidly expand our portfolio of projects that provide near-term revenue opportunities," said Fellows president George Young. "JMG is one of the premier operators, and we look forward to working with them to put these projects into production and expand our operations. We will not only benefit greatly from their operating experience in conventional oil and gas drilling, but also have a partner to work with in the coal bed methane area. The joint ventures on Weston County and Gordon Creek are in addition to our newly-optioned interests in the Kirby and Castle Rock projects in Montana in which Enterra Energy Trust (NASDAQ: EENC - News), a company under common management with JMG, is also a partner."

About Fellows Energy Ltd.

Fellows combines a seasoned management team with exploration targets focusing on coal bed methane, shallow gas and low-risk oil and gas potential.

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 project in Colorado and the Carter Creek project in Wyoming.

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).

In addition to the projects described above, Fellows recently acquired the Bacaroo project, which it believes represents a low risk opportunity to establish conventional oil and gas production through inexpensive drilling in areas of established production, while other projects being reviewed offer longer term, larger potential exploration opportunities in producing areas in the overthrust geology of the Rocky Mountains. As new projects are acquired, Fellows will add diversity to the over 540,000 acres of coal bed methane and conventional oil and gas projects it has previously optioned.

The Overthrust project is a 183,000 acre project covering coals in three seams in the same geologic formations and with similar depositional characteristics as the coal in the Drunkard's Wash project. Fellows will test the three identified coal seams that run through much of the area. Previous drilling has included seven exploratory wells that identified multiple coal seams of Tertiary and Cretaceous age that appear to be prospective for coal bed methane.

Fellows also recently purchased the 10,678-acre Carter Creek Project in the southern Powder River Basin. Fellows plans to commence drilling in the near future at the Carter Creek Project, in which Fellows has a 100% working interest. Fellows believes Carter Creek hosts a 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 is also recently acquired interests in the 95,000-acre Kirby and 140,000-acre Castle Rock projects in Montana (see press release of June 24, 2005), which will provide production in the short term.

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
CEOcast, Inc. for Fellows Energy
Ed Lewis, 212-732-4300


Source: Fellows Energy Ltd.