Acres

A new inventory of natural gas and oil on 99 million acres of federal land in 11 major geographic areas of the United States found that only 13% of the gas and 3% of the oil resources are recoverable under standard leasing terms, such as minimizing impacts on environmental and cultural resources.

A new inventory of natural gas and oil on 99 million acres of federal land in 11 major geographic areas of the United States found that only 13% of the gas and 3% of the oil resources are recoverable under standard leasing terms, such as minimizing impacts on environmental and cultural resources.

Marathon Oil Corp. last week acquired 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.

Marathon Oil Corp. on Thursday bought 8,700 net acres of natural gas-weighted properties in the Piceance Basin of Colorado in a cash transaction valued at $354 million. The acreage, acquired from Petroleum Development Corp. (PDC), is located in Garfield County in the Greater Grand Valley Field Complex, which is flanked by, and on-trend with, adjacent Marathon production.

Sharpe Resources Corp. said Monday it has signed an option agreement to purchase a 100% interest in the coal and coal gas rights to approximately 17,000 acres in Preston County, WW. The option involves several payments including $250,000 to exercise the option to purchase. Sharpe said the program has the potential to significantly increase the coal resource acreage in the area. The property involves approximately six separate coal seams to include the Bakerstown, Upper Freeport, Lower Freeport, Upper Kattanning and Lower Kittanning followed by the deeper Clarion coal seam. Some of the Upper Freeport coal has been mined previously on the property. “This property offer excellent opportunities for development of a large coalbed methane program encompassing the ability to drill and complete a several hundred well drilling program,” the company said. “Additionally the coal resources are potentially mineable, as indicated some these coal resources have been mined previously. Sharpe is currently evaluating the size of the coal resources on the property with the help of an independent resource consulting firm.” Sharpe is also evaluating the possibility of becoming involved in oil exploration in Nevada. This effort will involve a search for new oil reservoirs in a region that has had longstanding oil production in central Nevada. Heathsville, VA-based Sharpe Resources is a natural resources company engaged in the development of oil and natural gas and coal resources in the United States.

Forest Oil Corp. said it will pay about $255 million for producing assets, including about 26,000 acres, mainly in the Cotton Valley play of East Texas. The 110 Bcfe of estimated proved reserves (43% proved developed, 90% natural gas) produced about 13 MMcfe/d in January, and the Denver-based company said it expects to double production by the end of 2007.

Just the act of opening up an additional two million acres in Lease Sale 181 in the Central Gulf of Mexico with the prospect of substantial new supplies of natural gas in the relatively near term “will help to mitigate natural gas prices,” an industry representative testified in a Senate hearing Thursday.

Forest Oil Corp. said it will pay about $255 million for producing assets, including about 26,000 acres, mainly in the Cotton Valley play of East Texas. The 110 Bcfe of estimated proved reserves (43% proved developed, 90% natural gas) produced about 13 MMcfe/d in January, and the Denver-based company said it expects to double production by the end of 2007.

Houston-based Dune Energy Inc. has acquired interests in about 320 acres of oil and natural gas leases and four producing wells in Denton County, TX for $5.4 million, and another parcel of properties in Denton and Wise counties from Voyager Partners Ltd. for $68.3 million. All of the assets are located in the Barnett Shale region, near Fort Worth. Closing on the assets is expected by Dec. 15. A reserve report as of Dec. 31, 2004, prepared by independent petroleum engineering firm DeGolyer & MacNaughten, indicated there are 27 Bcfe of net proved reserves underlying the Voyager properties. Since that date, based upon an internal evaluation, Dune believes Voyager has added as much as an additional 18 Bcfe in proved reserves to the properties being acquired, bringing the total to 45 Bcfe. Dune also set up a credit agreement, which provides for a revolving credit commitment of up to $50 million with sub-limits of $13 million, and $16 million, respectively, for term loans, subject to certain covenants and conditions. Additional financing totaling $25 million of subordinated debt is also in place. The company has drawn down a $6 million revolving loan under the agreement in connection with the purchase of some of the Barnett Shale assets. Dune’s operations are concentrated onshore the Louisiana/Texas Gulf Coast as well as the Barnett.