Evergreen Picks Up Coalbed Methane Properties
Denver-based Evergreen Resources Inc. picked up two coalbed methane properties last week, one in Alaska, the other in Colorado. In the first deal, Evergreen signed a purchase and sale agreement with Ocean Energy Inc. and Union Oil of California to acquire a 100% working interest in about 48,000 acres of prospective CBM properties in Alaska for $960,000 in cash. The other is a joint venture agreement for 29,000 acres of CBM properties in Colorado, near its core properties in the Raton Basin.
The Alaska acreage, located about 30 miles northwest of Anchorage, contains deeper pay potential than traditional natural gas reservoirs, said Evergreen. The company said the Pioneer Unit's coal seams could contain potential unrisked recoverable reserves of up to 500 Bcf.
The joint agreement is a work commitment with J.M. Huber Corp. for acreage in Huerfano County, CO, at the northern end of the Raton Basin. Under the agreement, Evergreen will spend at least $2 million through March 31, 2002 to earn a 50% working interest in the properties, which now contain 15 shut-in wells. The properties are located about 20 miles north of Evergreen's existing 258,000 acres of CBM properties in Las Animas County, CO. Planned expenditures by Evergreen primarily will be for drilling, completions, workovers, equipment and fracture stimulations. The agreement took effect April 1.
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