David Peoples fired a 5-under 67 to take third place at minus-7.
Bubba Dickerson moved into a share of fourth place at 6-under-par 210 after a 66. He was joined there by Scott Gardiner, second-round leader Shane Bertsch and Wes Short.
Matteson, who earned his first win at the Virginia Beach Open earlier this year, got off to a great start as his second shot to the par-5 first stopped three feet from the cup. He kicked that in for eagle to jump to minus-4.
The Georgia Tech alum parred seven holes in a row before sinking a 6-foot birdie try on No. 9 at Fox Den Country Club.
The 25-year-old two-putted for birdie on the par-5 10th to get to minus-6. Matteson sank a 15-foot putt for birdie at the 15th. He closed with a 25- foot birdie putt at the last to share the lead and close out a bogey-free round.
'Obviously getting around here with no bogeys is quite an accomplishment,' Matteson said. 'It was a good Saturday. You couldn't have asked for a better day.'
Felton, who is chasing his first win on the Nationwide Tour, birdied the first. He later ran in a birdie putt on eighth to get to 5 under before catching fire on the back nine.
The Australian birdied the 10th, then posted back-to-back birdies from the 12th to move to minus-8. Felton took the lead at 9 under with a birdie on the 15th. He tripped to a bogey on 17 to share the third-round lead.
'That was a nice solid round,' said Felton. 'I started off nice and hung in there the rest of the way. I'll take 5 under any day.'
Will Mackenzie carded a 4-under 68 to move into a tie for eighth. He was joined at 5-under-par 211 by two-time winner this season Chris Couch, Nathan Green and Boo Weekley, who all carded rounds of 3-under 69.
Tim O'Neal, Dave Christensen, Mathew Goggin, Steven Alker and Deane Pappas are one stroke further back at minus-4.