Regency owns 8.9% of Curzon Energy Plc, which is developing its 100% owned Coos Bay, Oregon coal bed methane project in the United States.
Gas assets located in the Pacific Northwest
Operated by Curzon Energy Plc
- Curzon Energy is 100% owner and operator of approximately 47,000 acres of known and tested Coalbed Methane (CBM) Gas accumulations in the Coos Bay area of Oregon.
- Eocene aged Coal Bed Methane Gas in Coos Bay Oregon at a depth from 4000ft to the surface
- CBM is created during the formation of coal. Methane is trapped by water within a coal seam. Relatively low cost wells are drilled into the coal seam and when the water is pumped out the coal starts releasing methane gas.
- Previous operator has spent C. $37m to date and has drilled 5 wells and laid 4 miles of pipeline running from these 5 wells. This existing pipeline infrastructure is ready to be connected and within 15 metres of the regional pipeline. The regional Coos Bay pipeline has a capacity of 3.9 BCF/day.
- The 5 wells tested gas up to 100 Mscf/day each in an area selected for initial development due to proximity to a regional gas pipeline. Nearby wells test up to 500 Mscf/day.
- The Coos Bay asset contains 86 to 419 BCF of contingent resources and up to 1,000 BCF of CBM gas in-place, and an average gas content of 148 scf/ton.
- Total net thickness up to 70+ ft from over 10 coal seems, and average permeability of 6 md.
- CBM wells are different from conventional gas wells as they tend to be cheaper to drill as are mainly a lot shallower. CBM wells also produce gas for a lot longer than conventional gas wells.
Phase 1 (Currently ongoing): Reentry and and produce from 5 x existing wells, drill 2 x new wells, add gas compression and water disposal infrastructure, connect to 12in regional pipeline – Midcase resource estimate of 2.75 BCF
Phase 2 (36 Months): Up to 58 New Developmental Wells – Midcase resource estimate of 22.4 BCF – Equity and Debt Funded
Phase 3: (< 5 Years): Up to 400 new wells – Funded by Debt
Gas, widely considered the “fuel of the future”, continues to be the preferred fossil fuel in the United States having risen in 2015 to 33% of US power consumption with steadily increasing demand and relatively low levels of development activity and the Board of Regency considers Curzon an ideal access vehicle to this growth market.