This article is 19 years old. Images might not display.
To achieve its interest in Green River, Samson will first fund all the costs of the core hole.
If the core returns adequate results for gas saturation and content, Samson has the right, but not the obligation, to develop and solely fund several pilot production facilities.
Building these facilities would ultimately earn Samson the half-share interest across the 47,000-acres that is prospective for both coalbed methane and conventional gas, managing director Terry Barr said.
This transaction involves the stratigraphic section down to the base of the Fort Union Formation, and it is therefore strictly a coalbed methane opportunity.
Barr said while the rig market remains tight, the equipment needed to reach the depth for the core hole was more readily available than deeper rigs.
The Perth explorer currently has interests in 122,500 acres of production, development and exploration properties in the state - the fastest growing region in the US for gas and coalbed methane, Barr said.
