New Drilling Technology Could Finally Make CBM Very Economic

Summary: Over the past seven years, Mitchell Drilling has pioneered the Dymaxion drilling technology in Australia. Reports indicate they can extract coalbed methane (CBM) gas for as low as $1.10/mcf. Having drilled more than 250 wells across Australia, Mitchell Drilling has begun exporting the company's Dymaxion

In a previous interview about coalbed methane (CBM), Sprott Asset Management CBM analyst Eric Nuttall told us he would remain, "quite excited about the prospects for companies with coal bed methane assets so long as natural gas prices remain above $6 per Mcf (thousand cubic feet). The economics would be very skinny under $6." That's because CBM exploration and development can get pricey. What if there was a drilling firm regularly bringing gas out of the ground for under $1.50/mcf? There is and they've proven it with more than 250 wells in Australia. They've moved into India, where they drilled another 30 to 50 wells and another 70 wells to come. Mitchell has taken acreage in southern Kansas, where the company just finished its first CBM well. And the company formed a joint venture with Pacific Asia China Energy (TSX: PCE) to bring its Dymaxion