1st NRG, a natural gas/oil exploration and production company, has purchased coal bed methane (CBM) assets in the Powder River Basin in northeast Wyoming for $2.7m, financed by the seller plus 266,887 shares of 1st NRG common stock.
The 6,480 gross acres of field currently produces from 31 wells, where there are 6 more wells also dewatering, 5 wells recently drilled awaiting connection to the local infrastructure and permits to drill 25 additional wells.
1st NRG made this acquisition because of the upside potential of the field that is estimated to hold reserves of 4 BCF (3P) net to the company through the permitted locations.
1st NRG CEO Kevin Norris said that the existing wells produce revenue to the company, and the permitted locations provide near term – low cost growth, CBM is economical at current prices because of the low cost of entry and development.