By OGJ editors
HOUSTON, July 18 -- Storm Cat Energy Corp., Calgary, is to buy from Denver-based Bill Barrett Corp. 25,200 gross acres (17,000 net acres) in the Powder River basin coalbed methane play in Campbell County, Wyo., for $30.65 million.
The properties are in and around Storm Cat's core Powder River operating area. The acreage is 81% undeveloped, more than 90% of which is on US federal land.
Storm Cat is acquiring an estimated 10.2 bcf of proved reserves, 9.6 bcf of probable reserves, and 7.8 bcf of possible reserves. Production from the acquired properties is 6.6 MMcfd from 64 producing CBM wells, 46 of which Storm Cat will operate.
The properties being acquired are in the Northeast Spotted Horse operating area. The transaction is expected to close by Aug. 30. Upon closing, the transaction's effective date will be July 1.