Coastal Adds Midcontinent Reserves
Coastal Corp. subsidiary Coastal Oil & Gas bought oil and gas
assets of Conoco in the Uintah Basin of northeastern Utah and the
Piceance Basin of western Colorado. The properties are in two of
the most prolific gas basins in the Rocky Mountains. Proved
reserves are estimated at 500 Bcfe, about 95% gas.
Coastal is acquiring interests in 21 producing fields and an
estimated 312,500 acres of producing and non-producing leasehold
interests. The leaseholds include 106,000 acres of prospective deep
rights under and adjoining the Natural Buttes Federal Exploratory
Unit, which Coastal currently operates in Uintah County, UT.
Additionally, Coastal will acquire Conoco's Dragon Trail processing
plant which is capable of processing up to 60 MMcf/d. The plant is
about 15 miles south of Rangely, CO. Other assets included in the
acquisition include two gas gathering systems. They are the Ouray
system in the Ouray Field in Uintah County, UT, and Dragon Trails
in the Douglas Arch area of Colorado. Ouray has throughput of 5
MMcf/d, and Dragon Trails has throughput of 30 MMcf/d
"These properties are an excellent fit with Coastal's integrated
North American natural gas strategy," said David A. Arledge, CEO.
"Coastal has significant existing natural gas reserves in the area,
as well as an extensive transportation system with our Colorado
Interstate Gas Co. pipeline subsidiary. As a result, we can
leverage both our geological expertise and our drilling programs to
expand our exploration and production core area in the Rockies to
an adjoining basin in a prudent manner. With this acquisition, we
have the opportunity to drill more than 500 potentially productive
locations that are economically attractive at today's gas prices."
Joe Fisher, Houston
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