Preston

Chesapeake Energy Corp. failed to persuade a federal appeals court to overturn a lower court’s decision that the operator must pay $121 million after reneging on a transaction in Texas.

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.

Prairielands Energy Marketing Inc., a Bismarck, ND-basedsubsidiary of MDU Resources Group, and Preston Reynolds & Co.,based in Denver, formed Sage Gas Alliance LLC to focus onmarketing gas supplies originating in the Rockies region,principally within the Powder River Basin of Wyoming where PR&Cis a significant producer and developer of coalbed methane gas.