Fellows Energy Provides Operations Update on the Creston Project
Tuesday February 21, 9:56 am ET
New Potential Pay Zones Identified
BROOMFIELD, Colo.--(BUSINESS WIRE)--Feb. 21, 2006--Fellows Energy Ltd. (OTCBB: FLWE - News; "Fellows") announced today the following progress report on its Creston project in the Uinta Basin of Utah.
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Initial operations in late December and early January in the first well to be recompleted in the Creston Project identified three potential pay horizons. Fellows initially targeted the Upper Green River and Wasatch formations, as well as 88 net feet of zones in the Lower Green River formation. Continued work revealed an additional 32 net feet of potential pay zones in the Lower Green River formation and the Green River/Wasatch Transition. The well now shows potential for at least four producing horizons. The identification of the fourth horizon has augmented Fellows' production projections for this initial well and has extended the time frame for performing the recompletion work.
"We are quite pleased with the identification of not just three, but four horizons for production in our first Creston well," said Fellows President George Young. "As we stated in our December press release, we would tap the potential of the three previously tested and produced horizons, and also expected to achieve new completions in additional zones. Although more time than previously planned has been involved, the additional Lower Green River/Wasatch Transition perforations should provide a further increase in daily production potential."
Fellows proceeded in January to install downhole equipment necessary to protect the Wasatch formation during recompletion operations in the Lower Green River and Green River/Wasatch Transition formation. Thereafter, the newly-identified net 32 feet of proposed zones in the Lower Green River and Green River/Wasatch Transition were shot and stimulated. Test work to date along with past daily production indicate 117-127 BOE gross daily commingled production potential from these new zones that have now been completed and previously completed zones in the Wasatch and Upper Green River formations. The pumping unit has arrived on location and all other production facilities are on site awaiting final hookup to the wellhead.
Prior to commencing daily production, however, Fellows has determined to complete the remaining net 88 feet of proposed Lower Green River perforations originally identified. Perforation operations for those zones await the arrival of additional perforating equipment. Stimulation of the new perforations will commence as soon as possible after perforating and the well will then be returned to daily production. Past daily production from a portion of the perforations still to be shot was 89 gross BOE per day. Total indicated daily production potential in all four zones is therefore 206-216 gross BOE.
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 ongoing program continues concurrently.
This well is located in the Altamont-Bluebell Field, which historically has produced over 350 million barrels of oil equivalent. Due to the over-pressured, fractured nature of the reservoir in the field, as well as the large vertical extent of potential pay zones, many of the wells have formation damage resulting from traditional completion methods. Fellows plans to employ a strategic mix of conventional and innovative proprietary techniques to reduce or reverse the effects of formation damage and increase oil and gas recovery.
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