Rocky

The Rocky Mountains over the past 20 years have been established as one of the largest natural gas reserve regions in the Lower 48, but there is no lack of challenges for exploration and production companies to access and develop the resource, according to Richard H. Lewis, CEO of Prima Energy Corp.

The Powder River Basin of the Rocky Mountains holds more coalbed methane (CBM) reserves than previously thought, according to a U.S. Geological Survey (USGS) official, who testified Thursday before the House Energy and Mineral Resources Subcommittee. However, on a less positive note at the oversight hearing on CBM issues, Gene Whitney, a USGS supervisory geologist, lowered the forecast for CBM in the Uinta-Piceance Basin.

The Powder River Basin of the Rocky Mountains holds more coalbed methane (CBM) reserves than previously thought, according to a U.S. Geological Survey (USGS) official, who testified Thursday before the House Energy and Mineral Resources Subcommittee. However, on a less positive note at the oversight hearing on CBM issues, Gene Whitney, a USGS supervisory geologist, lowered the forecast for CBM in the Uinta-Piceance Basin.

U.S. Energy Corp. and Crested Corp. reported on Wednesday that their Rocky Mountain Gas Inc. (RMG) subsidiary has commenced drilling of developmental coalbed methane (CBM) wells on the company’s properties in the Powder River Basin in northeastern Wyoming. RMG currently holds 22 drilling permits on the properties and has surveyed and applied for an additional 32 permits within the project, the companies said.

Rocky Mountains natural gas producer HS Resources Inc. agreed to a friendly merger with Kerr-McGee Corp. last week, in a deal that sent the San Francisco-based independent’s stock soaring almost 21%. The deal, which would boost Kerr-McGee’s gas reserves 77%, is a cash-and-stock merger worth about $1.25 billion, with Kerr-McGee also assuming $450 million of the independent’s debt.

Rocky Mountains natural gas producer HS Resources Inc. agreed to a friendly merger with Kerr-McGee Corp. yesterday, in a deal that sent the San Francisco-based independent’s stock soaring almost 21%. The deal, which would boost Kerr-McGee’s gas reserves 77%, is a cash-and-stock deal worth about $1.25 billion, with Kerr-McGee also assuming $450 million of the independent’s debt.

Anadarko Petroleum Corp., which last week set in motion anaggressive Rocky Mountain strategy, said Friday it would investC$380 million ($260 million) in its Calgary-based Canadiansubsidiary to drill 600 wells throughout western Canada in a pushto bring production there to 74,000 net boe/d in 2001.

Anadarko Petroleum Corp. is doubling up its Rocky Mountain exploration and production presence this year, announcing it would budget more than $131 million toward an aggressive strategy to find and develop new natural gas and coalbed methane sources. The Houston-based company also plans to grow its Canadian natural gas business, announcing plans to invest $380 million in drilling and development.

Anadarko Petroleum Corp. is doubling up its Rocky Mountainexploration and production presence this year, announcing yesterday itwould budget more than $131 million toward an aggressive strategy tofind and develop new natural gas and coalbed methane sourcesthere. E&P will target some of the nearly eight million acrespicked up in the Union Pacific Resources merger last year (see DailyGPI, July 17, 2000).