By OGJ editors
HOUSTON, Apr. 17 -- Bill Barrett Corp. has agreed to buy CH4 Corp., a Forth Worth independent producer, for $80 million. The transaction is expected to close in early May.
CH4 has about 85,500 gross undeveloped acres (51,900 net) in the Powder River basin coalbed methane play, including acreage in the Hartzog Draw area. It has estimated proved reserves of 11 bcf of gas and probable and possible reserves of 50.4 bcf.
The acquired properties currently produce 6 MMcfd net from 163 gross wells. Another 128 gross wells are in progress or dewatering.
Future development costs for the properties are estimated at $44.5 million, of which about $14.7 million will be spent this year.
There may be further upside potential with multiseam completions and the completion of secondary coals, Barrett said. The company already has acquired the necessary permits and approvals to begin drilling this program.
