Texas company builds Alberta coal bed methane holdings

Gary Park

Petroleum News Calgary correspondent

MGV Energy, the Canadian unit of Texas-based Quicksilver Resources, has added to its coalbed methane prospects in central Alberta by acquiring a 50 percent interest in 76,800 acres of mineral rights.

The $5.4 million deal for lands in the Wood River area south of Edmonton gives MGV a 100 percent operated working interest of a net 5 billion cubic feet of proved reserves.

The properties had been jointly held by MGV and Ice Energy and are currently producing at rates of more than 100,000 cubic feet per well.

Quicksilver, in its third-quarter report, said it plans to initiate five new developments in the Edmonton group formations in 2004.

Glenn Darden, Quicksilver president and chief executive officer, said on average 125,000 cubic feet per day “may be a pretty good average across a big area.”

He said the Ice Energy “set the stage for increased drilling and production in several areas” of the Horseshoe Canyon coalbed methane fairway.

Darden said in November that Quicksilver is aiming for more than 300 coalbed methane wells in Canada in 2004 and could drill 500 wells in 2005.