By OGJ editors
HOUSTON, Sept. 20 -- Heartland Oil & Gas Corp., Vancouver, has signed a letter of intent to purchase Evergreen Resources Inc.'s Forest City basin (FCB) coal bed methane assets in eastern Kansas for $22 million.
The assets comprise all of Evergreen's FCB interests, including leases totaling 766,000 acres, 60 well bores, equipment, gathering and surface facilities, and geological, engineering, land and accounting data and records.
Evergreen's executive officers will serve on Heartland's advisory board for 2 years, and Heartland will retain Evergreen's Kansas-based CBM field personnel.
Upon completing the acquisition, Heartland will commence an aggressive development program, completing 37 CBM wells, and in 2005, drilling an additional 60 CBM wells.
