Fellows Energy Closes on Gordon Creek Project

Fellows Energy has completed the purchase of the 5,242-acre Gordon Creek Project in central Utah from The Houston Exploration Company of Houston, Texas.

The Gordon Creek project is in an area of known coal resources in Carbon County in eastern Utah near other operating coal bed methane projects, such as the Drunkard's Wash Project, in which Fellows' project personnel were involved in successful drilling previously for River Gas Corporation. As a result of the closing of the purchase, Fellows now owns the project outright, and is beginning the planning and permitting process for future drilling. Fellows is actively negotiating on a number of additional projects in the western United States. Drilling continues on the Southern Utah Project. Fellows' acquisition program includes 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.