No red herring here. Its a legitimate concern, especially as I hold BOW. They have plenty of acerage elsewhere so maybe not a huge concern overall. Its just not necessarily a great idea to have your CBM acerage right next to a coal mine open to the atmosphere. Another potential issue is the pressure reduction when dewatering and production commences. As you reduce the pressure in the coals the gas is desorbed, (comes out of the coal), and if the coal seam is open to the atmosphere, i.e. outcropping at surface nearby, you may have the effect of the gas escaping up dip and out at the surface. It all depends on the pressure differentials between the well and the atmosphere, but also something to keep in mind. However, to finish on a potential good point. If you have coals that are exposed to to the atmosphere and recharge, you can get the production of secondary methane from biogenic sources, which can actually increase the level of CH4 in your reservoir down dip. Sorry to be all academic again, but as its an area I work in, I thought you might appreciate the info.
Cheers,
Comline
BOW Price at posting:
$1.06 Sentiment: Hold Disclosure: Held
