methane

EOG Resources’ CEO Mark Papa may call it “weird” gas, but coalbed methane (CBM), tight sandstone, biogenic gas and shale formations, otherwise known as unconventional natural gas resources, are an increasingly important component of the North American natural gas supply.

EOG Resources’ CEO Mark Papa may call it “weird” gas, but coalbed methane (CBM), tight sandstone, biogenic gas and shale formations, otherwise known as unconventional natural gas resources, are an increasingly important component of the North American natural gas supply.

Encouraged by early drilling success from its new coalbed methane (CBM) fields in the Raton Basin, Pioneer Natural Resource Co. expects to increase its natural gas-heavy production by as much as 6% this year, the CEO said Tuesday.

CONSOL Energy Inc., the second largest natural gas producer and reserve holder in the Appalachian Basin, has reported increases in both coalbed methane (CBM) production and reserve totals for 2004. The company increased its CBM reserves by 4% or 90 Bcf, to more than a Tcf during 2004, at the same time increasing production to 50 Bcf during the year, about 12% more than the 44 Bcf produced in 2003.

CONSOL Energy Inc., the second largest natural gas producer and reserve holder in the Appalachian Basin, has reported increases in both coalbed methane (CBM) production and reserve totals for 2004. The company increased its CBM reserves by 4% or 90 Bcf, to more than a Tcf during 2004, at the same time increasing production to 50 Bcf during the year, about 12% more than the 44 Bcf produced in 2003.

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.

Marathon Oil Corp. is soliciting offers for subsidiary Pennaco Energy Inc.’s extensive coalbed methane (CBM) assets in the Powder River Basin of Wyoming and Montana. The producer paid $500 million for the Denver-based company in 2000 (see NGI, April 30, 2001).

Marathon Oil Corp. said Tuesday it is soliciting offers for subsidiary Pennaco Energy Inc.’s extensive coalbed methane (CBM) assets in the Powder River Basin of Wyoming and Montana. The producer paid $500 million for the Denver-based company in 2000 (see Daily GPI, Dec. 27, 2000).

Fort Worth-based Quicksilver Resources Inc. moved forward with its Canadian coalbed methane (CBM) program in 2003, ending the year averaging 5.7 MMcf/d, with year-end production from its CBM wells at 16 MMcf/d. For all of its projects, full-year gas production totaled 34.5 Bcf, while production in the fourth quarter was 9.3 Bcf, up from 8.6 Bcf in 4Q2002. Natural gas, including natural gas liquids, comprised 89% of the company’s total production in the fourth quarter of 2003. Through its Canadian subsidiary, MGV Energy Inc., an $89 million capital budget for development and exploration is planned in 2004. Most of this budget will target CBM development while continuing exploration and piloting efforts in new areas. MGV presently holds leases and drilling rights on more than 525,000 net acres in Canada. Fourth quarter net income was $5.8 million on revenues of $36.8 million, or $0.23/share, compared with 4Q2002 net income of $4.3 million ($0.21/share) on revenues of $31.8 million. Net cash from operating activities for the fourth quarter of 2003 was $21.4 million versus $20.2 million for the fourth quarter of 2002.