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Creston Resources Ltd. Announces Update of Participation Agreement With Fellows Energy

Posted on: Monday, 7 November 2005, 06:00 CST

Creston Resources, Ltd. ("Creston" or the "Company") (Pink Sheets: CSTJ) announces that field operations have commenced on the previously announced Participation Agreement with Fellows Energy ("Fellows") (OTC: FLWE). The initial re-completion in an on-going program will tap production in previously tested and produced pay zones in addition to adding new perforations in potential pay zones. The previously produced Wasatch formation pay zones averaged 30 barrels of oil per day in their last 24 months of daily production before being shut-in due to the low oil prices of 1986. The previously produced pay zones in the Green River formation averaged 89 barrels of oil per day in their last 12 months of daily production before being shut off when the well was deepened to the prolific over-pressured Wasatch formation. An additional pay zone in the Green River formation has a tested gas rate of up to 432,000 cf/day, but was never produced due to the low gas prices at the time of the last test. These three previously proven zones have a total daily potential of 191 barrels of oil equivalent per day. The production from these zones will be supplemented by additional perforations in the Green River formation for a further increase in daily production potential. It is anticipated that the well will be returned to daily production before the end of November 2005. Gas transportation and sales facilities have been installed and a gas sales contract is in place.

This well is located in the Altamont-Bluebell Field, which historically has produced over 350 million barrels of oil equivalent. Due to the over-pressured, fractured nature of reservoir in the field, as well as the large vertical extent of potential pay zones, many of the wells have formation damage resulting from traditional completion methods. Creston & Fellows plan to employ a strategic mix of conventional and innovative proprietary techniques to reduce or reverse the effects of formation damage and increase oil and gas recovery. Evaluation of the next well to be returned to production in this program continues concurrently.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the company's strategy and prospects. Readers and investors are cautioned that the company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the company, and other factors that may be more fully described in additional documents set forth by the company.

Source: Business Wire

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