By OGJ editors
HOUSTON, Jan. 5 -- Kestrel Energy Inc., Denver, has farmed out its 30,000 acre Green River basin coal bed methane (CBM) acreage in Wyoming to Sun Delta Inc., operator, and Victoria Petroleum USA Inc.
The joint venture will invest as much as $3 million over the next 4 years, including development of a pilot program to commercialize gas reserves within the Big Red Coal and other coals within the acreage. Sun Delta has scheduled the first well to be drilled before April. Gas derived from a successful test could be placed into production immediately using Kestrel's existing 8 MMscfd pipeline.
The initial development focus will be on utilizing data from previous conventional drilling, on Kestrel's 24 sq mile 3 D seismic survey, and on efficient use of the pipeline, all of which will enhance speedy production.
The Big Red Coal is a 25-35 ft thick, laterally extensive seam extending throughout the lease. Coal is found at 3,000-5,300 ft and, together with more-shallow coal seams, has a net coal thickness of more than 60 ft. Potential exists at more than 250 locations, according to Barry Lasker, Kestrel president and CEO.
