Economic Evaluation of Horizontal Borehole Drilling for Methane Drainage from Coalbeds

摘要

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 the 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-percent interest rate of return on investment could be realized from the sale of methane gas in excess of 3 billion cubic feet during the years 1985 through 1990 at a minesite price of $2.25/per thousand cubic feet.