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Gold/Mining/Energy : Coalbed Methane (CBM) Corral
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To: zebra4o1 who wrote (296)5/31/2008 10:22:50 AM
From: LoneClone   of 365
 
Yes, coal seam gas is the same thing as CBM.

I find it hard to value CBM properties right now as gas prices jump around and volatility spreads over from the shale and other unconventional gas plays. As well, valuations vary widely from location to location.

CBM wells are typically very cheap to drill -- on some fields you can drill a well a day -- and have much longer production profiles than regular or other types of unconventional gas plays, often into 30 years or more.

However, they take up to a year or more to dewater, and you have to dispose of the water. And each field requires different completion techniques that can take quite a while to figure out, so I try to stick with experienced operators with a proven track record in CBM.

There a a few CBM plays that have no water, like the Mannville coals in Alberta, so they command a premium price.

LC
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