Powder
River Basin – 233 Wells
The Powder River basin is the single largest source of coal
mined in the United States and since 1997 has been the site
of extensive coalbed methane production. It has become the
most active area in the country for such gas development.
The United States Geological Survey estimates there may be
a much as 100 trillion cubic feet of gas waiting to be found
in the Powder River Basin. Over the last couple of years Galaxy
has acquired leasehold interests in and is developing several
different coalbed methane project areas in the basin. As of
March 9, 2006, Galaxy had interests in 160 completed wells,
65 wells in various stages of completion and eight water disposal
wells. Of the completed wells, 37 are currently producing
natural gas, 30 are still dewatering, and the remainder are
awaiting future infrastructure development work.
Wyoming
Galaxy’s Wyoming properties in the Powder River Basin
consist of approximately 53,000 net acres in four project
areas in Sheridan, Johnson and Campbell counties, plus working
interests in a total of 207 coalbed methane wells in various
stages of completion and production. The Company also has
8 water disposal wells. As of March 9, 2006, total gas production
from Galaxy’s Wyoming leases was approximately one million
cubic feet per day.
Montana
Galaxy's Montana properties in the basin consist of about
32,000 net acres in two project areas in Big Horn county,
plus working interests in 18 non-operated wells in various
stages of completion and production.
THE
FACTS ABOUT COALBED METHANE
Methane is the clean-burning primary
component of natural gas. Coalbed methane (CBM), also called
coalbed natural gas, refers to methane gas that is trapped
in coal beds. This gas is used to heat homes and businesses,
to provide energy for commercial uses, and as fuel for electrical
power generation plants.
The methane is held within coal
seams by water pressure. The extraction of coalbed methane
involves pumping water from the coal seam aquifer in order
to release the water pressure that is trapping the gas in
the coal. Methane travels with the ground water being pumped
from the coal by a well drilled and equipped with a water
pump that is completed in the coal seam that contains methane.
Exploration and development costs in the basin are generally
much lower than for deeper, more geologically complex oil
and gas exploration projects. However operating cost for these
wells are usually higher than conventional free flowing gas
wells, due to the need for pumping and disposing of water
during production.
CBM production from the
Powder River Basin has climbed rapidly since the mid-1990s,
when 4.8 billion cubic feet of gas were produced by 158 wells
in 1995. Annual CBM production from the Powder River Basin
for 2004 was 328.0 billion cubic feet from 13,600 wells. (Source:
Wyoming Oil and Gas Conservation Commission).
|
