GeoMet Inc., Houston, will divest its coalbed methane interests in the Appalachia basin in West Virginia and West Virginia.
Current net operating cash flow averaged $1.65 million/month on net sales of 22.8 MMcfd for the 12 months ended Aug. 31 at an average $3.58/Mcf.
The properties are in McDowell, Wyoming, Raleigh, Barbour, and Taylor counties, W.Va., and Buchanan County, Va. The assets represent vertical wells and, to a lesser extent, horizontal wells. The operated and nonoperated interests include 298 vertical and 108 horizontal wells.
Most vertical wells have a 100% working interest and an average net revenue interest of 80%, while the working interest of the horizontal wells varies from 33% to 100%. The vertical wells are characterized by shallow production decline curves and long lives while the horizontal wells display more of the conventional natural gas well decline characteristics, GeoMet said.