Fellows now has rights to over 240,000 acres of oil, gas and coal bed methane properties it believes have high potential for commercial production, and will soon increase to three the number of drilling programs being mobilized. In addition to the Overthrust Project, drilling will proceed on the Gordon Creek Project and the Johns Valley Project in Utah. Gordon Creek is in close proximity to the successful Drunkard's Wash Project drilled and placed into production by Fellows personnel. Final drill site delineation is also underway on two projects in Wyoming, the 19,290-acre Weston County Project on the east flank of the Powder River Basin and the 10,678-acre Carter Creek Project in the southern Powder River Basin.
Fellows president George Young stated, "We have exceeded our near-term goal of having over 200,000 acres under option, and our preparations for our drilling programs are on target. We believe our chances for success are heightened by having multiple drill sites delineated on multiple projects we have evaluated for strong upside potential. We are pleased to have made such great progress in just two months since our first acquisitions."
In addition to its planned drilling operations, Fellows is continuing its aggressive acquisition program, and has a number of quality exploration projects under review, including projects submitted by third parties and projects presented under its agreement with Thomasson Partner Associates of Denver, Colorado ("TPA"). 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). Fellows has 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.
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