methane wells

[cowman]

Have you had any interest in your area? They drilled seven test wells around here this winter and they all came in, so I suppose we'll get a whole lot more this winter. MGV is the company and they were pretty easy to deal with. Tended to be a little cheap but got the lease cleaned up fast.
I saw a tv show(actually it was on the National) and they were saying how horrible it all was. The well on my place had very dry gas. Dry enough to go right into the Nova pipeline. They used the lease road from an existing oil well and did the whole thing in tanks without plowing out a big lease. In two days to drill and two days later to do the coiled rig thing. The only thing I didn;t like was they flared the well for three weeks. Hate to see that gas burning when I look at my heating bill!!!
Paid $15000 plus $2650/yr. rent for about two acres. Now there is just the well head with a little pipe fence around it. The pipeline ran right into the oil lease where they hooked up with the line taking the waste gas from the oil well. All in all a very positive experience! They're welcome to come back anytime!
I was talking to this old boy west of Red Deer who had one drilled on his place. They told him they wanted to do 7 more on the quarter section. He said bring them on and to hell with Mad Cow!

[ValueChainFX]

cowman, is this like the coal bed methane where they use water injection to push the gas out. I have been trying to educate myself on some of this and so far it has been interesting. I understand the experiences they had in the US were far from positive but so far I have hear (for the most part) good things.

We have been looking at some co-energy possibilities with these guys but still a little under informed on the whole subject? Co-energy generation would go a long way in reduced energy costs and I believe those costs will just go up. So any reduction possibility would be a good thing!

[cowman]

Valuechain: Yes this is coal bed methane, but no they don't use water to push it out. Most coal bed methane has too much water in it and they need to get rid of the water. Fortunately most of Albertas coal seams are fairly dry, or so they say. Water injection is happening right now but in deeper formations. It really works well in the short term but shortens the life of the well by watering them out. A lot of the water injected comes from other wells where they knock the water out of wet gas but a huge portion comes right out of the rivers! That water is gone forever!
If there is a lot of water that needs to be separated from the coal bed methane, it will tend to be quite salty and will need to be injected into a deep well. The coal bed wells are only about 900 feet deep compared to about 6000 feet for a typical well.