Anadarko Petroleum Corp. said Friday morning that it has entered into an agreement with Warren Resources Inc. to jointly explore for and develop coalbed methane resources in the fairway of the Atlantic Rim area of the Washakie Basin in southern Wyoming.

Covering almost 211,000 acres in Carbon County, the area of mutual interest will be co-managed by Anadarko and Warren under joint exploration and operating agreements. Anadarko will be the operator.

The agreement stipulates that Anadarko will purchase an interest in 87,700 net acres from Warren for $18 million, consisting of $12 million in cash and deferred drilling credits of $6 million. In addition, Anadarko is assigning to Warren contractual interests in 46,600 net acres, such that Anadarko and Warren will each have a 50% undivided interest in the combined acreage of approximately 133,300 net acres within the AMI.

“Wyoming’s Atlantic Rim is a very promising coalbed methane opportunity that has been validated by drilling and pilot testing,” said Mark Pease, vice president of Anadarko’s U.S. Onshore and Offshore. “Because the trend is located partly on Anadarko’s Land Grant, this agreement enables us to leverage our unique acreage position in Wyoming and create synergies that we believe will yield significant reserves at a low cost of finding. It’s a win-win for both Anadarko and Warren Resources.

“Combined with our other activities on the Land Grant and our recent acquisition of Howell properties in the Powder River Basin, we continue to demonstrate that Wyoming is a key growth area for Anadarko,” Pease added.

As an independent energy company, Warren Resources is engaged in the acquisition, exploration, development, production and operation of natural gas and oil properties. Through its Petroleum Development Corp. (Pedco) subsidiary, Warren conducts all of the natural gas and oil drilling, completion, production and land operations. Pedco was formed in 1973, and is based in Albuquerque, NM, with regional offices in Gillette, WY and Beeville, TX.

“We are delighted to partner with an industry leader like Anadarko,” said Norman F. Swanton, CEO of Warren Resources. “The joint venture combines the expertise of both companies and creates a powerful combination of talents to develop this potentially large coalbed methane natural gas resource base.”

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