Rocky Mountain Gas adds 20 Wyoming coalbed methane wells

By the OGJ Online Staff

HOUSTON, Oct. 15 -- Rocky Mountain Gas Inc. and partners have completed 20 coalbed methane wells in Wyoming and plan up to drill up to 25 more this fall.

The subsidiary of US Energy Corp. and Crested Corp. has drilled and completed 16 wells on its Clearmont, Wyo., coalbed methane properties and four wells in the Frontier and Adaville coals on its Oyster Ridge project in southwestern Wyoming.

At the 6,000-acre Clearmont project in the Powder River basin, Rocky Mountain Gas and partner CCBM Inc., a wholly owned subsidiary of Carrizo Oil & Gas Inc., Houston, are completing two more wells. They have installed submersible pumps on six wells as part of the dewatering process and plan to place more on pump in the coming weeks. Carrizo is funding the initial phase of this drilling program (OGJ Online, July 10, 2001).

The partners plan to drill another 15-25 wells this fall.

US Energy said encouraging shows have prompted RMG to acquire another 57 drilling permits in the area. RMG owns working interests ranging from 25% to 100%.

US Energy said the Clearmont project is at the convergence of the WBI Bitter Creek and the Bighorn Sheridan Lateral pipelines.

RMG may drill another four wells to test the Frontier and Adaville coals on its Oyster Ridge project, depending on tests of the first four.

CCBM is funding this phase of the drilling program as well.

The Oyster Ridge project covers 63,000 acres in southwestern Wyoming in Ham's Fork coal field adjacent to the Green River basin. The project is owned 100% by RMG subject to a 25% participation option held by Anadarko Petroleum Corp. The Kern River pipeline crosses the property.

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