The Crane 6-7, located in Township 6 north, Range 8 east, Section 7, Rich County, Utah will be a core test of the Spring Valley coals of the Frontier formation, with an estimated coal thickness of 40 feet thick, and the coals in the Bear River formation, with an estimated coal thickness of 115 feet. A continuous coring, wireline retrievable, system will be used to enable timely recovery of the coal and carbonaceous shale core samples to enable more accurate gas content analysis than is possible using conventional coring systems. This core analysis, combined with information from three wells previously drilled by Quaneco, LLC in the vicinity will provide the basis for formulation of total gas in place estimates. The characterization of the reservoir will also allow for detailed pre-completion stimulation studies to be performed in order to increase the chances for successful completion and production of methane from this new coalbed methane horizon. The well is expected to take 3 to 4 weeks to reach its estimated total depth of 5,000 feet.
Fellows recently entered into a Purchase and Option Agreement with Quaneco, L.L.C., an Oklahoma limited liability company, to acquire a 65% working interest in the Overthrust Project, comprising over 183,000 acres of oil, gas and coal bed methane leases in northeastern Utah and southwestern Wyoming. Fellows will test the three identified coal seams that run through much of the area. Quaneco previously drilled seven exploratory wells that identified multiple coal seams of Tertiary and Cretaceous age that appear to be prospective for coal bed methane. Some of these coals are of similar age and depositional condition to other productive coal bed methane fields.
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. 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.
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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