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Western Selling Jonah Field Interest

Western Selling Jonah Field Interest

Western Gas Resources' production subsidiary Lance Oil &amp Gas is offering for sale a working interest in the Jonah Field, a large basin-centered gas accumulation in the northwest portion of the Green River Basin in southwest Wyoming. Western intends to retain all of its gathering and processing rights in the area following a sale.

The Jonah Field is currently being developed on 80-acre spacing, with gas production approaching 200 MMcf/d from 85 wells. Lance owns working interests in 19 producing wells on 2,000 gross acres, with current gross and net gas production of about 45 MMcf/d and 4 MMcf/d, respectively. Gas deliverability is expected to increase as completion operations are finalized in the 19 producing wells and three additional wells begin producing later this month. In-fill drilling on 40-acre spacing, which is under evaluation by the Jonah Field producers, could provide up to 25 additional drilling locations on the Lance acreage.

"The Jonah field is a very prolific field. There's been a lot of success there," said Ron Wirth, director of investor relations for Western Gas Resources. "There's no question. I've heard numbers of 600 Bcf to a trillion cubic feet of gas potential in Jonah."

Western is an independent gas gatherer and processor and an energy marketer providing services from the wellhead to the delivery point. The company owns and operates gathering, processing, treating and storage facilities in gas-producing basins in the Rocky Mountain, Midcontinent, Gulf Coast and Southwest regions of the United States.

Joe Fisher, Houston

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