Dominion Energy and River Gas Acquire Lease
Rights to 19,000 Acres in Black Warrior Basin
200 New Coalbed Methane Wells
Expected Over Next Three Years
RICHMOND, Va. -- Dominion Energy Inc. and River Gas Corporation
today announced that they have jointly acquired lease rights to develop additional
coalbed methane production in Alabama’s Black Warrior Basin.
The agreement, signed earlier this week with Pittsburgh and
Midway Coal Mining Company, gives Dominion and River Gas production rights on
more than 19,000 acres. The two companies expect to drill approximately 200
wells on the newly acquired acreage over the next three years.
Terms of the acquisition were not disclosed.
The Black Warrior Basin is a 35,000-square-mile area in northwest
Alabama. The area produces about 315 million cubic feet of coalbed methane per
day.
Dominion Energy and River Gas currently own and operate more
than 530 coalbed methane wells in the region which produce 50 million cubic
feet per day. River Gas began operation of these properties in 1987 and was
one of the earliest operators in the Black Warrior Basin.
Dominion Energy, headquartered in Richmond, Va., manages
the natural gas operations of Dominion Resources Inc. (NYSE: D), an $18 billion
holding company active in national and international electric power and natural
gas exploration and production.
River Gas is a privately held company headquartered in Northport,
Ala. Pittsburgh and Midway Coal, headquartered in Denver, is a subsidiary of
Chevron U.S.A. Inc.
