The company recently signed a purchase agreement for a coal-seam, natural gas property located in Kansas.
The property is located in the Cherokee basin, which straddles Kansas, Missouri, Arkansas and Oklahoma and has been producing gas from shale and coal deposits for over eighty years and has 2.8tcf of potential recoverable coalbed methane (CBM).
The potential CBM resource for this area is generally defined by the presence of four or more seams in the Cherokee Group, and it has yet to be determined how many of these coal seams in an individual well can be completed and produced.
Individual well reserve estimates have varied from as little as 0.1bcf per 160 acres to over 0.5bcf per 80 acres.
