Fellows believes the Bacaroo Project represents a low risk opportunity to establish conventional oil and gas production through inexpensive drilling in areas of established production, while the Circus Project offers a longer term, larger potential exploration opportunity in the overthrust geology of Montana. These two new projects will add diversity to the over 240,000 acres of coal bed methane and conventional oil and gas projects previously optioned by Fellows. With Fellows now commencing drilling on its second coal bed methane project and finalizing plans to commence drilling on its 19,290 acre Weston County Project in Wyoming, it continues apace with its plans to establish rapid growth.
Fellows president George Young said, "These two new projects demonstrate our commitment to growth and our ability to make strategic acquisitions, and we have the technical expertise and the access to capital to move our projects forward."
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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