Carbon Natural Gas Co. said Oct. 7 it acquired producing natural gas wells and gathering facilities in the company's Appalachia Basin operating area in West Virginia.

The Denver company paid about $9 million for its purchase of about 2,300 wells and more than 900 miles of natural gas gathering pipelines and associated compression facilities. The seller wasn't disclosed.

The wells are currently producing about 9,300 net thousand cubic feet equivalent per day (Mcfe/d), of which 95% is natural gas. Estimated proved developing reserves are 37.7 Bcfe (98% natural gas).

Carbon Natural Gas acquired 95% average working interest and 79% average net revenue interest in the wells. The company will operate the wells and gathering systems.

Including its acquisition, Carbon Natural Gas now holds about 487,000 net acres of oil and gas mineral interest, 70% HBP, in the southern Appalachian Basin. Average net daily production is about 15,300 Mcfe (90% natural gas).

Funds for the acquisition, which has an Oct. 1 effective date, were provided from borrowings from a newly established reserves-based lending facility provided by LegacyTexas Bank, the company said.