GeoMet Announces Commencement of Gas Deliveries from British Columbia Coalbed Methane Project
GeoMet Inc., announced that on December 31, 2008 it commenced gas deliveries from eight wells at the Peace River coalbed methane project located near Hudson’s Hope, British Columbia. Peace River is the first commercial coalbed methane project in British Columbia.
GeoMet owns a 50% working interest and operates the project which covers over 50,000 acres of Crown tenure. Four coreholes and twelve production wells have been drilled, targeting the Lower Cretaceous Gething coals. Average coal thickness over the acreage is 52 feet, and the average gas content is 400 cubic feet per ton. GeoMet 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 Seré, GeoMet’s President and Chief Executive Officer, commented: “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.”
