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Infinity Increases its Stake in Colorado CBM
Infinity Inc. reported Friday that it has acquired leases on an additional 2,500 acres of coalbed methane (CBM) property in its Antelope project in Northwestern Colorado. During a conference call, the company also reported that it is generating additional revenues from the unexpected production of oil at one of the initial gas wells at its “Pipeline” project in Wyoming. The purchase price was not disclosed
The independent energy exploration/development and oilfield services company reported that the acquisition of an additional 2,500 acres in Northwestern Colorado expands the amount of its leased property in the Antelope project by 16% to a total of approximately 18,500 acres. Infinity said it has an approximate 83% net revenue interest and a 100% working interest in the entire 18,500 acres.
“While near-term drilling activities will be focused on our ‘Pipeline’ and ‘LaBarge’ coalbed methane projects in Wyoming, we believe the ‘Antelope’ project has similar long-term potential for natural gas production,” said Stanton E. Ross, CEO of Infinity. “We acquired 16,000 acres in the Piceance Basin in Northwestern Colorado last November, under lease terms that do not require Infinity to drill for a number of years. While this allows us to initially devote our corporate resources to the development of coalbed methane reserves in Wyoming, the addition of 2,500 more acres in Colorado should enhance the long-term potential of Infinity’s portfolio of coalbed methane properties.”
Analysis of geological studies on the Antelope project reveals total coal thickness exceeding 200 feet beneath some parts of the property, the company said. Average thickness for the entire property is estimated at more than 100 feet. Infinity said development depths are similar to those of its Pipeline project in Wyoming and are compatible with the well servicing capabilities of Infinity’s Consolidated Oil Well Services Inc. subsidiary.
During the conference call, Ross also informed investors that one of the initial five coalbed methane wells at its ‘Pipeline’ project is producing approximately 50 b/d of high-quality oil as a byproduct of its natural gas production. “This has been a pleasant surprise,” noted Ross. “Of course, we cannot determine if the well will continue to give up condensate at this rate, or if any other Pipeline wells might produce condensate in economic amounts. However, if condensate production continues at current levels from the Pipeline 1-4 well, it could add 3-4 cents per share to our earnings on a quarterly basis.”
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