Western Gas Resources Inc., Denver, (NYSE: WGR) plans to acquire coalbed-methane properties and related gathering assets in the Big George fairway of the Powder River Basin of Wyoming from an undisclosed seller for approximately $136.7 million. Closing is expected by mid-March and will be funded with the company's revolving credit facility. The purchase includes the drilling rights on approximately 40,000 gross and net acres and 110 drilled wells, of which approximately 70 are currently dewatering and the remaining 40 wells are awaiting hookup. Net risked probable and possible reserves are estimated to be 109 billion cubic feet and gas production is expected to begin in the third quarter of 2006. At year-end 2005, Western Gas had drilling rights on 523,000 net acres in the Powder River Basin coalbed-methane play and net production of 120 million cubic feet of gas per day.
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