Coal gas asset in Oklahoma will be sold
Coal gas assets in the Arkoma Basin – located primarily in Pittsburgh and Hughes counties, Oklahoma – will be sold by the proprietor of the assets, Canaan Resources.
The coal shallow gas assets produce 11 million ft3 and include 560 producing wells and over 64 000 net acres. An independent report from Netherland, Sewell & Associates Inc estimated reserves of 26.5 billion ft3 and total proved reserves of 43.3 billion ft3.
Canaan’s assets produce primarily from the Hartshorne Coal formation, and include additional acreage held by production, ancillary infrastructure assets and Canaan’s proprietary 3D seismic over the acreage. Non-binding indications of interest are due from interested parties by 25 July.
The Canaan shallow assets produce predominantly from the Hartshorne Coal formation at a depth of 2000 ft to 2500 ft, with additional shallow production from the Booch, Savanna, McAllister, and Bartlesville formations.
At the end of April 2014, the assets generated US$ 607 200 of cash flow. Canaan said that current distributable cash flow would be able to support additional drilling required to offset normal production decline.
Hartshorne coal bed methane
Hartshorne coal, from the Arkoma Basin, has provided millions of cubic feet of gas to coalbed methane (CBM) companies operating in Oklahoma.
A total of 2635 Hartshorne (Hartshorne, Lower Hartshorne, and Upper Hartshorne) CBM wells have been completed in Oklahoma since 1988. Most (1610) wells are horizontal with lateral lengths ranging from 4 to 1498 m (14 to 4914 ft; an average of 669 m [2195 ft]). Coal in most Hartshorne CBM wells is medium volatile bituminous rank. Hartshorne coal is semianthracite rank in about 160 CBM wells in Le Flore County.
According to a US Environmental Protection Agency (EPA) report, released in 2011 (‘Coalbed Methane Extraction: Detailed Study Report’), CBM wells in the Arkoma Basin discharge no produced water directly or indirectly to surface water “because their well-developed infrastructure” prevents it.
Written by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/27062014/oklahoma_coal_gas_assets_will_be_sold_cbm61/
You might also like
Coal exit and workforce shortages keep short-term Australian power prices high
Cornwall Insight has reported that the ongoing phase-out of coal facilities and the sluggish progress in launching new renewable energy projects is poised to push Australian electricity prices higher until 2030.
