TECO BOOSTS HOLDINGS IN COALBED GAS

TECO Energy Inc., Tampa, Fla., has substantially increased its stake in the coalbed methane play in Alabama's Black Warrior basin, buying interests in two projects from Gulf States Paper Corp., Tuscaloosa, Ala. TECO Coalbed Methane Inc. acquired $19 million in coalbed methane development assets, including Gulf States' working, royalty, and other interest in more than 400 wells, of which 375 are on production. Total flow averages more than 50 Mmcfd. The purchase increases TECO

Sept. 23, 1991

TECO Coalbed Methane Inc. acquired $19 million in coalbed methane development assets, including Gulf States' working, royalty, and other interest in more than 400 wells, of which 375 are on production. Total flow averages more than 50 Mmcfd.

The purchase increases TECO Energy's total commitment in coalbed methane to more than $125 million.

TECO already held a significant interest in both projects and for both is teamed with operator Taurus Exploration Inc., Birmingham, Ala. With the Gulf States acquisition, TECO holds an 84% interest in one project, with Taurus holding the balance. TECO joined Chevron U.S.A. Inc. in the second project, each with a 44% interest, while Taurus owns a 12% interest.

TECO Energy said its Black Warrior basin coalbed gas is showing a profit because of a federal tax credit.