Canadian producer CanScot Resources Ltd. said last Monday its U.S. subsidiary, Tika Energy Inc., has significantly increased its working interest in certain prospective coalbed methane (CBM) lands within the Power River Basin in northeastern Wyoming. It acquired an additional 53.3% working interest in lands situated in the Big Bend area of Johnson County, WY, for an estimated $800,000 (US).

Tika Energy now holds a 78.3% working interest in the Big Bend project, which amounts to 8,606 gross and 6,540 net acres, according to the U.S. producing arm of Calgary, AB-based CanScot Resources. The company held a 25% working in the lands prior to the transaction.

Tika Energy is operator of the Big Bend project and plans to drill an eight-well CBM pilot project prior to year-end, it said. More than 90 potential development locations have been identified on this large acreage block.

Tika Energy said it presently was producing CBM from the Big George coals at its K-Bar field, which is located to the east of the Big Bend project. At K-Bar, individual wells have averaged approximately 300 MMcf/d from thinner coals at shallower depths, it noted. A 24-well CBM project is currently under development a few miles east of the Big Bend project area.

The Powder River Basin is considered the second most prolific CBM producing area in the United States, with current CBM production averaging more than 950 MMcf/d, according to Tika Energy. The company said it has been actively involved in the basin since 1999 and has participated in the drilling of more than 80 CBM wells to date.

In addition to its CBM production activities in Powder River, CanScot Resources said it has been at the forefront of the exploration and development of CBM in western Canada.

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