These assets could represent more than 1.9 trillion cubic feet equivalent (Tcfe) of probable and possible reserves on approximately 32,500 gross acres and 24,000 net acres at 10-acre spacing.
The acquired assets increase Williams’s probable and possible reserves in the Piceance Basin by more than 42% to 6.4Tcfe, based on the previously announced year-end 2007 estimates. In addition, Williams has reported 2.8Tcfe of year-end 2007 proved reserves in the Piceance Basin.
The acreage covered by the agreement is contiguous to Williams’s existing 17,500 net acres of leasehold and 48 producing wells in the Ryan Gulch area of the Piceance Basin highlands in the Rio Blanco County.
Williams is actively developing production in the area. The company currently owns a total of approximately 170,000 net acres in the Piceance Basin and expects existing and future production volumes to flow to the company’s Willow Creek gas-processing plant under construction nearby. Along with the reserves and acreage, the acquisition also includes related gathering and treating facilities valued at $35 million, as well as 38 producing wells.
