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Economic evaluation of horizontal borehole drilling for methane drainage from coalbeds.

Authors
Baker EC; Grau RH III; Finfinger GL
Source
Pittsburgh, PA: U.S. Department of the Interior, Bureau of Mines, IC 9080, 1986 Jan; :1-18
Link
NIOSHTIC No.
10005302
Abstract
The potential profitability of a horizontal borehole drilling program for recovering methane gas in an Alabama coalbed for 6 yr in advance of mining is estimated in this Bureau of Mines report. A cash flow analysis based on estimated capital investments, annual operating costs, and the selling price of methane gas was used to determine the net income and net cash flow for each year of operation. Subsequently, the annual net cash flows were capitalized to determine the discounted cash flow rate of return. Findings indicate that a 25.08-Pct interest rate of return on investment could be realized from the sale of methane gas in excess of 3 billion ft3 during the years 1985 through 1990 at a minesite price of $2.25/Mft3.
Keywords
Economic-analysis; Methane; Alabama; Natural-gas-production; Directional-drilling; Coal-seams
Publication Date
19860101
Document Type
IH; Information Circular
Fiscal Year
1986
NTIS Accession No.
PB87-139416
NTIS Price
A03
Identifying No.
IC-9080
NIOSH Division
PRC
Source Name
Pittsburgh, PA: U.S. Department of the Interior, Bureau of Mines, IC 9080
State
PA; AL
Page last reviewed: November 19, 2021
Content source: National Institute for Occupational Safety and Health Education and Information Division