CH4 has approximately 85,500 gross undeveloped acres (51,900 net undeveloped acres) in the Powder River Basin coalbed methane (CBM) play, including acreage in the Hartzog Draw area. The acquired properties are currently producing approximately 6 million cubic feet per day (net) from 163 gross producing wells. Another 128 gross wells are in progress or dewatering.
Bill Barrett Corp. estimates that proved reserves are 11 billion cubic feet (Bcf) and probable and possible reserves are 50.4 Bcf as of the effective date of the acquisition, March 1, 2006. Future development costs for these properties are estimated to be $44.5 million, of which an estimated $14.7 million will be spent in 2006.
According to Bill Barrett Corp., the acquisition should close in early May. The purchase is being funded through borrowings under the company's recently expanded $400 million
revolving credit facility.
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