CDX will be developing and operating gas wells on the properties in Barbour, Harrison and Taylor counties, which are owned by CoalQuest. In addition to receiving royalty income, it will also retain 50% ownership rights on all further developments and production on a well-by-well basis.

WL Ross’s International Coal Group (ICG) is in the process of acquiring CoalQuest, a deal that commenced earlier this year. ICG is also currently moving its headquarters from Ashland, Kentucky, to Charleston, West Virginia.

“We are delighted to be among the pioneers for coalbed methane extraction,” said Ross in a statement. “We look forward to the continued application of new technologies to the coal industry.”

Due in part to significant increases in natural gas prices throughout the country, coal bed methane production is now being sought as a viable alternative.