increase in gas , page-9

Yeah I know, but in fact they mention some of the issues but don't cover any of them. There are no specifics in the PWCreport, it was just compiled by PWC 's Brisbane office so they could entice some consultancy work to raise funds for the CBM companies in 2003 when the market was a bit down on CBM companies and money was scarce.

What they say about markets is all true but like I say you can have all the contracts in the world but if you can't produce and guarentee supply for the long term it's good night.

Go back through all the CBM companies annual reports since 2000 and see how much they have spent and how many wells they have drilled, then see how much gas they are producing now. You will find that the return on equity is shocking considering a return is well specific, meaning every well should return money not all wells as a whole as they are all individual and not related in any way except for pipeline and compression. It is not like oil where you do step out wells to drain the entire reservoir. Each well has its own reservoir and if it does not produce it means that reservoir is dead and so your resource is depleted. By stating reserves in company reports they are not entirely factual because they are not based on steady state production engineering principles. In accounting speak that means attributing a profit to a companies audited reports without looking in the books to see where it has/will come from.
You will find that in some cases out of 20-30 wells drilled only 2-3 are producing commercial quantities after 2-5 years. Meaning 70-80% of well reservoirs contain unextractable gas because while the gas may be their it is not coming out because of reservoir characteristics which have not been overcome. In this game it is not how many successes you have but how many failures!