Evergreen buying coalbed methane properties in Alaska and Colorado
Evergreen Resources Inc., Denver, Colo., signed an agreement to buy coalbed methane property in Alaska and signed a joint venture agreement for coalbed methane properties in Colorado. Evergreen acquired the Alaska acreage from two companies while the joint venture agreement is with J.M. Huber Corp.
By the OGJ Online Staff
HOUSTON, May 10 -- Evergreen Resources Inc., Denver, Colo., signed an agreement to buy coalbed methane property in Alaska from two companies and entered into a separate joint venture agreement with J.M. Huber Corp., Houston, for coalbed methane properties in Colorado.
Evergreen signed an agreement to acquire a 100% working interest in 48,000 acres of prospective coalbed methane properties in Alaska for $960,000 in cash from Ocean Energy Inc., Houston, and Unocal Corp., El Segundo, Calif..
The acreage, which also contains potential traditional natural gas reservoirs, is 30 miles northwest of Anchorage. Evergreen believes Pioneer Unit's coal seams may contain potential recoverable reserves of up to 500 bcf of gas.
Evergreen's joint venture agreement with J.M. Huber Corp. covers 29,000 acres of coalbed methane properties in Huerfano County, Colo., in the northern end of the Raton Basin. Under terms of the agreement -- effective Apr. 1 -- Evergreen will spend at least $2 million through Mar. 31, 2002, to earn 50% working interest in the properties, which contain 15 shut-in wells.
Evergreen's planned expenditures will be for drilling, completions, workovers, equipment, and fracture stimulations. The properties are 20 miles north of Evergreen's 258,000 acres of coalbed methane properties in Las Animas County, Colo.
Evergreen Pres. and CEO Mark Sexton said, "While our current development focus continues to be the Raton Basin, we have expanded our portfolio of unconventional natural gas projects in North America."