Economic Evaluation of Directional Drilling for Methane Drainage From Coalbeds
Description:The Bureau of Mines estimated the economic feasibility of investing in a directional hole methane drainage project in the Pittsburgh coalbed for 5 yr in advance of mining. This report estimates the capital investment and operating cost of recovering 325 MMft3 of methane gas per year and the selling price of approximately 317 MMft3 of gas per year. The labor, equipment, and supply requirements were determined from those of a previous directional hole drilled at the Emerald Mine, near Waynesburg, PA. The cost of equipment, materials, services, and labor are in third quarter 1982 dollars. They were obtained from vendors, contractors, and the U.S. Department of Labor. Findings indicate a total capital investment of $1,381,160. Annual operating cost amounted to $167,690. At a wellhead price of $2.05 per thousand cubic feet, the sale of approximately 317 MMft3 of gas per year results in a rate of return on investment of approximately 25 pet.
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