Fellows' president, George Young, said, "With our growing production from two projects, we will continue to work to increase our revenue, pay off debt and strengthen our balance sheet. The credit facility will allow us to accelerate the development and drilling of our Carbon County project, and the recently completed workover financing of $1.25 million for the Creston project will facilitate further development on that project. Since March, we have raised $5.25 million in workover and joint venture acquisition financings to acquire and develop both the Carbon County and Creston projects. By using joint venture and other credit facilities, we have completed these financings without any dilution to shareholders. We expect to continue to increase cash flow while minimizing shareholder dilution."
Fellows anticipates increased production to result from the recent workover of the Carbon County operations completed on the first well in that project, along with workovers to be conducted in the near future on the other seven previously-drilled wells. These are the first in many steps aimed at increasing production.
At Creston, The Company has established stabilized production in the first of its 45-well Creston project following the installation of a variable speed drive. Fellows has completed its evaluation of the next wells to be returned to production, and is making arrangements for additional drilling rigs and other equipment in order to facilitate completions of the workovers at a faster pace. The wells are predominantly located in the Altamont-Bluebell Field.
Fellows an early stage oil and gas company led by an experienced management team focused on exploration and production of natural gas and oil in the Rocky Mountain Region using traditional and new technologies. Current strategy is to pursue both short- and long-term opportunities to leverage the 230,000 acres of current assets that management believes are characterized by reasonable entry costs, favorable economic terms, high reserve potential relative to capital expenditures and the availability of existing technical information.
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