BPI Energy Holdings Inc., Cleveland, (Amex: BPG) plans to acquire coalbed-methane rights in Herrin and Springfield seams in Illinois from Illinois-based Western Fuels of Illinois Inc.,\ for an undisclosed price.

            The assets include CBM on 5,600 acres contiguous with 2,320 acres overlapping BPI’s Delta Field in Saline County, Illinois. The lease provides access to two new seams in those wells, and the new acreage increases BPI’s leasehold assets in Saline County to approximately 13,280 acres, and BPI’s gross leasehold interest to approximately 534,280 acres.

BPI president and chief executive James Azlein says, “The Herrin and Springfield coal seams are the two thickest seams in the Delta area and offer uncommonly high methane saturation for the Illinois Basin. Furthermore, the area is the site of previous exploration, and our existing production and gas-gathering systems are already in place.”

He adds that only underground mining had occurred on the acreage related to this new lease, creating mine voids where gas gathers in sealed chambers. Mine wells will be drilled to exploit this “gob gas.”

As of April 30, BPI had 120 producing wells. The company plans to drill a total of 24 new CBM and coal-mine-methane wells on the new lease.

BPI will fund development through its advancing-term credit facility with GasRock Capital.