This paper presents a review of the actual production, sales, and economic data from two production areas with 52 wells developed by a joint coal industry' gas industry effort owned equally by Jim Walter Resources, Inc. (JWR), a subsidiary of Jim Walter Corporation of Tampa, Florida and Enhanced Energy Resources, Inc. (EER), a subsidiary of Kaneb Services, Inc. of Houston, Texas. The unique reservoir characteristics of the coal environment are described in brief, a comparison of actual methane production from coal with computer model predictions is presented, and the capital and operating costs are discussed with specific emphasis on the economic results.

This information differs from similar previous work in that economic vitality is now apparent whereas previous inquiries were essentially restricted to the technical reservoir engineering characteristics and the physical capability of coal to desorb (produce) methane. There are a number of published papers on this important technical aspect several of which are references for this presentation.

Production Area I (31 well production area) has been generating an operating profit for the past 21 months. Profits have increased substantially in the past year as a result of the completion of an 8" transmission line and reduced operating costs. Initial production commenced in late 19/9. A five well pilot project was evaluated for approximately two years before commercial development commenced in late 1981. A total of 31 wells were drilled by mid-1982. First sales commenced in February of 1982. Production Area II drilling commenced in January of 1983 with initial sales in March of 1983.

The economic viability is demonstrated based on actual operating profits over the past twenty-one months and current experience with respect to improvements in operational techniques and costs. These data are applied to the computer forecasts of long term dellverabilities for projections of expected economic performance.

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