Gas driller releases plans

Colorado-based Evergreen resources Inc. released its plans last week for an exploratory drilling project that will test the viability of local coal-bed methane reserves. Last year, the company finished consolidating leases for the project -- some of which had been previously explored but never developed.

The company holds 100 percent working interests in about 63,000 acres, acquired through deals with the state of Alaska, the Alaska Mental Health Lands Trust and two other energy companies that have previously explored the area, Unocal and Ocean Energy.

The final plan for drilling describes a $3-$5 million project which includes drilling at eight wells in two test or "pilot" areas. The pilot drilling and completing of the wells to gather data will last about one year, but Evergreen should know if gas here is economically viable within about nine months, a company source said. Evergreen expects to start drilling in August, and there is a specialized drilling rig on its way to Alaska from a similar exploration project in the United Kingdom.

Exploration pilots will incorporate a pod of four wells drilled within 1,000 feet of each other, according to the company plan. In a development program, wells will be spaced at greater distances.

The company's spokesperson in Colorado was unavailable to comment for this article. The Frontiersman acquired a copy of the plan from company officials who do not yet have permission to be quoted.

The company plan explains that three locations for pilot clusters have been chosen, but Evergreen only needs to drill two of them in order to meet the requirements of its state leases.

"By having approval for more than two pilots, we help ensure that [Evergreen's] well obligations can be met even if land, permitting or other problems arise. The location of the pilots are north of the Parks Highway between the cities of Wasilla and Houston," the plan said.

Pilot number one is situated one and a half miles northwest of the intersection of the Parks Highway and Big Lake Road, where a private party owns both surface and mineral rights, according to the documents. Evergreen is finalizing an agreement with the owner to drill on their property this summer, according to the project plan.

Pilots two and three are situated along Church Road, two and a half miles north of the Parks Highway. In these areas, both the surface and the minerals are owned by the state Division of Lands or the Mental Health Trust.

Evergreen's drilling rig is truck-mounted and is similar to a water well drilling rig. In fact, the company will be seeking a local water well contractor to drill the first 100 to 200 feet of each hole before its rig comes in for the more technical part of the job. The coal bed methane reserves Evergreen is targeting are generally shallower than 2,500 feet, and the company's permits allow them to go no deeper than 2,999 feet, according to sources in the company.