Coalbed

Nine nationwide projects designed to improve water resource management practices at shale gas and coalbed methane (CBM) drilling sites were given a green light to move forward with funding from the Department of Energy’s National Energy Technology Laboratory (NETL). The projects come at an opportune time as state and federal regulators scrutinize hydraulic fracturing at oil and gas drilling sites (see related stories).

Nine nationwide projects designed to improve water resource management practices at shale gas and coalbed methane (CBM) drilling sites were given a green light to move forward with funding from the Department of Energy’s National Energy Technology Laboratory (NETL).

Colorado’s coalbed methane (CBM) producers will have another year to comply with new state groundwater regulations under legislation signed by Gov. Bill Ritter last week.

Colorado’s coalbed methane (CBM) producers will have another year to comply with new state groundwater regulations under legislation signed by Gov. Bill Ritter this week.

Pinnacle Gas Resources Inc., a junior explorer that focuses on coalbed methane (CBM) resources in the Rocky Mountains, has sold some undeveloped acreage and gas gathering assets in Wyoming for $3.2 million. Some of the proceeds will be used to pay down debt.

The coalbed methane (CBM) play in the Atlantic Rim of Wyoming continues to pay dividends for Denver-based Double Eagle Petroleum Corp., which Wednesday reported a record 230% increase in 4Q2008 production over the same period of 2007.

Devon Energy Corp. has acquired a 44% stake in Chevron Corp.’s leasehold in the Drunkard’s Wash coalbed methane natural gas field in east-central Utah. The field, which has about 51,000 net acres, is being developed jointly by Chevron, ConocoPhillips and XTO Energy Corp.; current net output is 40 MMcfe/d. For the stake, Devon transferred back to Chevron around 14.2 million shares of Chevron common stock, which it has held since acquiring PennzEnergy in 1999 (see Daily GPI, Aug. 19, 1999). In exchange, Devon received a stake in the field and $280 million in cash from Chevron. In August Devon retired exchangeable debentures issued by PennzEnergy that were associated with the Chevron shares, which enabled Devon to make the exchange transaction.

Chesapeake Energy Corp. and BP America intend to form a joint venture that gives BP a 25% interest in Chesapeake’s Fayetteville Shale assets in Arkansas for $1.9 billion, the companies said last week. This marks the third transaction in less than two months involving the sale of Chesapeake’s shale assets, two of which have been with BP.

For the third month in a row, Double Eagle Petroleum Co. broke a record for natural gas production at its Catalina Unit, an emerging coalbed methane play located in the Atlantic Rim of Wyoming.