US-based energy company GeoMet has commenced gas deliveries from eight wells at the Peace River coalbed methane project located near Hudson's Hope in the Canadian province of British Columbia.

GeoMet claims that it owns a 50% working interest and operates the project which covers over 50,000 acres of Crown tenure. Four coreholes and 12 production wells have been drilled, targeting the Lower Cretaceous Gething coals. Average coal thickness over the acreage is 52ft, and the average gas content is 400 cubic feet-per-ton.

The company expects to book initial proved reserves on this project as of December 31, 2008. The 2009 development program will be finalized shortly, with drilling expected to commence in the summer following the spring break up season.

Darby Sere, president and CEO of GeoMet, said: “We are excited to achieve the first coalbed methane gas deliveries in British Columbia. We expect to increase gas sales from the Peace River project for many years as we continue the development of the project.”

GeoMet is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (“coalbed methane”) and non-conventional shallow gas. Its principal operations and producing properties are located in the Cahaba Basin in Alabama and the Central Appalachian Basin in West Virginia and Virginia. The company also controls additional coalbed methane and oil and gas development rights in Alabama, British Columbia, Virginia, and West Virginia.