IVZ media thread, page-6975

Coalbed methane projects are considered unconventional gas and tend to be much higher costs than conventional projects. I recall the same as timmasbd. Scott said because our project is conventional and due to the huge scale, the 2% royalty and corporate tax isn't fair to the country.

Coalbed methane projects involve a long dewatering phase in which your wells produce nothing but water. Once the water is drained, the formation begins to produce gas. I'm vaguely familiar with the concept because a company I was invested in had an interest in a coalbed methane exploration block. Wikipedia has a decent summary if you're interested in reading further. One quote of note: "Coalbed methane wells often produce at lower gas rates than conventional reservoirs, typically peaking at near 300,000 cubic feet (8,500 m3) per day (about 0.100 m³/s), and can have large initial costs."