A newly formed affiliate of Denver-based Carbon Natural Gas Co. continues to acquire acreage in the Appalachian Basin, announcing Tuesday that it paid an undisclosed seller $21.5 million for natural gas assets in West Virginia.
The company said Carbon Appalachian Co. LLC completed the purchase of assets located mostly in West Virginia with current net production of 7.5 MMcf/d. The company estimates that the properties have 52 Bcf of proved developed producing reserves. The acquisition also includes 311 miles of pipeline, gathering lines and related compression facilities. The company did not disclose the specific location of the properties.
Carbon Appalachian was formed earlier this year with a $100 million equity commitment from two undisclosed institutional investors to acquire and develop property in the region. At the time, the company announced that it had acquired 3.6 MMcfe/d of production from properties in Tennessee for $20 million.
Traded over-the-counter, Carbon operates mostly conventional oil and gas wells in the Appalachian, Illinois and Ventura basins. The Tennessee assets it acquired are prospective for the Chattanooga Shale.
With the completion of the West Virginia purchase, Carbon increased its ownership stake in Carbon Appalachian to 16% from 3%. The company said it would continue to acquire properties in Southern Appalachia with its committed funds.