The company, which produces 8.5 million cubic feet per day in Wyoming, said it was preparing for coalbed methane development despite environmental groups' recent campaign against drilling there.

Federal land managers had given approval for Anadarko Petroleum and its partners, including Double Eagle, to drill up to 2000 wells in the project.

However, the effort was hampered after conservation groups appealed against a decision by the US Bureau of Land Management to allow the partners to drill up to 1800 coalbed methane wells and 200 conventional wells in the Atlantic Rim.

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