The letter of intent agreement was negotiated with the assistance of Thomasson Partner Associates, Inc. of Denver, Colorado ("TPA") as part of Fellows' continuing program of acquiring quality projects. Under an exploration funding agreement recently announced by Fellows with TPA, TPA will present to Fellows additional oil, gas and coal bed methane projects for evaluation by Fellows technical personnel. The exploration funding 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 Gordon Creek 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.
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