Thunder Energy, Burlington enter into CBM joint venture in central Alberta

July 24, 2002
Thunder Energy Inc., Calgary, has entered into a joint venture with Houston-based Burlington Resources Inc. to assess coalbed methane resources on Thunder Energy's existing properties.

By OGJ editors

HOUSTON, July 24 -- Thunder Energy Inc., Calgary, has entered into a joint venture with Houston-based Burlington Resources Inc. to assess coalbed methane resources on Thunder Energy's existing properties, which cover 14 townships in central Alberta.

"Commercial CBM production has been established in a number of basins in the US and is currently providing 7% of total US gas supply," Thunder Energy said. "Based on this proven technology, the joint venture will be evaluating an estimated 120 sections (75,000 acres) of CBM rights held by Thunder with identified coal accumulations of up to 10 m in total thickness," the company added.

Burlington will front the cost of the exploration wells, with Thunder Energy maintaining an option to participate in subsequent pilot wells. Following completion of the exploration and pilot phase, Burlington will earn 50% of Thunder Energy's CBM interests.