Western Gas Resources said it bought about 60 Bcf of proved gas reserves in the San Juan Basin on about 24,000 net acres from an undisclosed seller for $82.2 million. The property currently has about 100 coalbed methane (CBM) wells that are producing 12.6 MMcf/d (9.3 MMcf/d net).
“These assets are an excellent fit with our existing gathering and processing assets in the San Juan Basin and offer the potential for additional drilling locations,” said Western CEO Peter Dea. “They fully support our strategy of being a premier producer and gatherer of unconventional natural gas in the Rocky Mountain region and serve to establish a new core integrated area for the company.”
The purchase also includes approximately 130 miles of related gathering systems, which are currently connected to Western’s existing San Juan River plant. Closing is expected to occur on October 1, 2004.
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