By OGJ editors
HOUSTON, Dec. 23 -- Anadarko Petroleum Corp., Houston, and Warren Resources Inc., New York, agreed to jointly explore for coalbed methane in the fairway of the Atlantic Rim area of the Washakie basin in southern Wyoming.
The area to be explored covers 211,000 acres in Carbon County, Wyo. Anadarko is buying an interest in 87,700 net acres from Warren for $18 million, and Anadarko will be the operator.
So far, significant coalbed methane development in Wyoming has concentrated on the Powder River basin in the northeastern part of that state. Anadarko said it was too early to comment on the potential significance of the Washakie basin, which is part of the Green River basin.
"Wyoming's Atlantic Rim is a very promising coalbed methane opportunity that has been validated by drilling and pilot test," said Mark Pease, Anadarko vice-president, US onshore and offshore. He described Wyoming as "a key growth area" for Anadarko.
Earlier this year, Anadarko agreed to acquire Houston-based Howell Corp. in a cash deal valued at $265 million. Anadarko touted that acquisition as the "cornerstone" of a much larger effort to grow its oil production in Wyoming (OGJ Online, Sept. 30, 2002). The Howell properties are in the Powder River basin.