Under the Agreement, Fellows will begin supplying funding to revitalize the production across Creston's entire properties consisting of 27 wells on 9,000 acres. Creston will retain 100% of current or historical production while Fellows will earn a variable percentage of the production increase resulting from its investment. The Agreement calls for the use of both proven conventional and innovative recompletion methods to unlock untapped reserves. Work is scheduled to begin on the first four wells immediately, maintaining continuous operations until all wells have been brought to full potential.
The Uintah Basin is one of the most petroliferous areas in the country. Oil and gas production in the Uintah Basin began in the late 1940s, with major development in the 1960s, and expanding in the 1970s and 1980s. Since the 1980s there has been a tremendous surge of exploration and production activity in the basin with literally thousands of wells being drilled and completed. Within the last decade, discoveries using the latest oilfield technological advances, including 3-D seismic methods, have yielded significant discoveries in previously unproductive formations, opening up thousands of acres of the basin for exploration and development. More than 300 million BO have been produced from the Bluebell/Altamont field alone, and combined total production from Duchesne and Uintah counties in 2004 was 9,615,191 BO (65% of the total oil produced in Utah in 2004) and 146,118,755 MCF/G (49% of the total gas produced in Utah in 2004).
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