We have been seeing developments in the oil and gas fields for several years, some good and then some others. I've heard some very disturbing reports out of Washington about taking coalbed tax credits away from companies who put wells into production after 12/92 that were not perforated in the coal zone before that time.

We should expect this now. Every time we try to make a dollar, some clown back east who doesn't know what a gas well or oil well or even what a cow looks like, thinks we are making too much money. I would like to see those "Good People" out here when the weather is hot, cold, raining, snowing, etc. telling us we make too much money with THEIR knees deep in the mud!

One good thing for the producers: Nothing has changed with government coal reserves except a few more lawyers made their next years` house payments.

That's enough complaining about that, but we do need to call our congressperson and tell them what this will do to our livelihood.>

I would like some input from people who have produced Coalbed Methane Wells and made them work!

I have seen different ways to complete this "new-found" gas and several are about as expensive to complete as drilling & completing a typical well at twice the depth. Lifting costs are out the roof on several projects and I would like to know why.

I have been working in the patch for the last 18 years. In that time, I have seen projects that worked for everyone's benefit. CBM wells have produced gas for several years; one of the projects that I was a part of has produced CBM feasibly for 10 years. Granted, production has dropped since it began, but it is still making coin for the owners.

I have been working on a project (I will leave the location a secret to protect the innocent ; ) that has produced and is producing 20+ MMCF per day and the lifting costs are eating its lunch to the point that it not making a 1 cent profit!

I believe it all started when the wells were nitrogen/sand fraced and bled back. The operations manager thought what needed to be done was blowing back the wells as fast as possible to clean out the sand "that was just put in to hold the formation open." Get that terrible sand out of the way, blow the sand out into the wellbore, bail out the sand, swab the well back, bail out the sand, then when the well quits giving up water, pour some more into it, open it up, swab her back and so forth.

What a joke! After all the work, money and time, it did NOT work. Frac sand is still getting into the pumps. All that goofy stuff, started by putting the pump below perforations and NO backpressure on the wells, has easily eaten away any chances for a well to make a profit. Then, putting on too small a pumpjack, a 40 on a 1500` well that is stroking 15 to 18 spm, tearing up the unit for the sake of getting CBM out of the ground as quickly as possible, "to make our gross look good." Our gross has definitely been that!

In my opinion, if we had looked at this project as something lasting 30+ years and taken into consideration that these wells will produce just as much gas and produce it cheaper, if taken with care as trying to force it out, we would have seen a much better bottom line at this time.

If this was my project or if I were the production manager I would follow this plan: Frac with nitrogen/sand or water/sand, whatever the formation reacts better with without using excessive amounts of frac sand. I know of one engineer that will tell you "the well needs to screen off during the frac to know that you have put in to the well all that will go into the well." Then when the well does not produce, he says the well needs to be swabbed back

I like to start with a pad of water and after I have decided what amounts of frac sand to use, use it then follow with water to help shove the sand out into the formation and get it away from the wellbore. Bleed the wells back slowly using a choke until, if using nitrogen, you get methane gas then SELL THE GAS. After the well waters out or it gets down to a level that is unfeasible, run a downhole pump. But, put on a backpressure regulator, "the amount of pressure varies with different wells," to keep the sand out. I like to use whatever is needed for the various wells: pc`s, downhole conventional pumping equipment, whatever gets me the best bottom line!

If this doesn't go along with your opinion please let me know. If this does, then I would like to work with you. However, I will keep an open mind about ways to produce and complete CBM wells.

We need to learn from one another and help each other and make all of our lives more prosperous.

Thank you for your attention,
Monty