Fellows Energy has completed the surface casing on its Crane 6-7 Well on its newly optioned Overthrust Project through a depth of 513 feet. The surface rig is now demobilizing and the larger rig, which will drill to the total estimated depth and retrieve wire line cores of the coal, is now mobilizing to the site to complete the well to its estimated depth of 5,000 feet. 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.
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.
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.