I disagree,
Unless I misunderstand, the press release stated in regard to the coal:
With cost of mining and transportation estimated at $11-$15 per ton, this will show a $10 per ton conservative net profit, (representing maximum cost to mine and minimum selling price), providing net asset value in excess of $100,000,000,
In regard the gas, it was said:
The U.S.G.S. estimates also indicate in excess of 2 billion cubic feet of coal methane gas. This gas currently sells in excess of $3.00/MCF 1000 cubic feet. In most cases this gas is subject to an alternate fuel tax credit in excess of $3 MCF, for an estimated value of $5/MCF valued at $10,000,000.
That's a ratio of 10:1. Further, I don't think "coal methane gas" is equivalent to "natural gas" (Help Bob Ulrich). If you look at eia.doe.gov you will see that almost all the "natural gas" production comes from the South Central US (TX, OK, LA, NM) and West Virginia doesn't even register.
Mark N.
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