Energen

Energen Corp. said three of five new exploratory wells it drilled in West Texas targeting the Wolfcamp Shale in the Permian Basin had outstanding results during 2Q2014, and the company believes it may have discovered a viable, horizontal oil play in the San Juan Basin.

Birmingham, AL-based Energen Corp. said this week it has signed an agreement with an undisclosed buyer to sell its Black Warrior Basin coalbed methane (CBM) assets in Alabama for $160 million plus standard closing adjustments. The company expects the sale to close in early October with an effective date of July 1, 2013.

Energen Resources Corp. closed its previously announced purchase of San Juan Basin coalbed methane properties from a private company for an adjusted purchase price of $263 million. Located in the under-pressured Fruitland coal play, more than half of the estimated 240 Bcfe of proved gas and gas liquids (NGL) reserves are behind pipe and undeveloped, the company said. Gas accounts for 80% of the estimated proved reserves, with NGL making up the balance. The company also estimates that there are up to 60 Bcfe of probable reserves. A large development inventory from the acquisition is estimated at more than 110 infill wells. Future development costs are expected to be $50 million.