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Environmental in four-state play



By Upstream staff 

Idaho-based Environmental Energy Services said it had agreed to buy mineral leases covering 21,220 acres in four US states from Duke Oil & Gas for about $2 million in company stock.

Duke and Environmental are partners in other projects, but had decided to transfer the assets to Environmental's sole control, the company said.

The deal will increase Environmental's asset base five-fold, it said, adding that it planned to start exploration on the lands immediately.

The purchase and sale agreement included 1700 acres in Louisiana containing an estimated one trillion cubic feet of natural gas reserves and more than 100,000 barrels of oil reserves, 5000 acres in Oklahoma with an estimated 500 billion cubic feet of natural gas reserves, 3000 acres in Arkansas with an estimated 138 billion cubic feet of natural gas reserves and 11,520 acres in Alaska with an estimated 110 million barrels of oil, Environmental said. All estimates were unproven, possible reserves Environmental said.


Thursday, 14 September, 2006, 20:29 GMT  | last updated: Thursday, 14 September, 2006, 20:29 GMT

Wide horizons: for Environmental Energy Services
 

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