By OGJ editors
HOUSTON, Jan. 27 -- PRB Gas Transportation Inc., Denver, has purchased the natural gas gathering assets of Storm Cat Energy Corp. (SCU) near Recluse, Wyo., for $1 million.
PRB also has agreed to provide gathering and compression services for SCU's Recluse-area development properties, which encompass 6,600 gross acres. SCU estimates that the properties produce 3 MMcfd of gas and expects production to increase to 7 MMcfd in 2006.
"There is a good deal of drilling under way in this area," noted PRB Chairman and CEO Robert Wright, "and even more planned for this year and beyond.
Independent Storm Cat Energy, Vancouver, BC, is focusing on unconventional gas reserves from shale, coalbeds, and tight sand formations.