Illinois

BPI Energy said it sold 185.3 MMcf of coalbed methane from its Illinois basin properties in the fiscal year ended July 31, up 37% on the year.

Oct. 30, 2007

By OGJ editors
HOUSTON, Oct. 30 -- BPI Energy Inc., Cleveland, said it sold 185.3 MMcf of coalbed methane from its Illinois basin properties in the fiscal year ended July 31, up 37% on the year.

The company has completed and tied in 30 wells in addition to the 91 that were producing gas as of July 31, when it reported reserves of 16.2 bcf.

The typical well at the company's 10,000-acre Delta field in Saline County, Ill., costs $186,000 for 185 MMcf of gross reserves. The coals are less than 500 ft deep. The received gas price fell 22% to $6.50/Mcf in the fiscal year ended July 31.

Installation of a new compressor at Delta increased capacity to 1.5 MMcfd. At the end of October 2007 production was 900 Mcfd and sales were 750 Mcfd.

The company also has a 10-well pilot in Macoupin County.

BPI Energy, with 512,000 acres, controls the dominant acreage position in the 60,000 sq mile Illinois basin.