"Coal Gas" is natural gas that is produced from the coal seam formation.  The Natural Gas Policy Act of 1978 provided tax credits to stimulate the exploration and production of gas from unconventional sources of supply.  This tax credit was extended in 1992, and was left out the current energy bill.

The Coalbed-methane (coal gas) industry in Oklahoma has developed rapidly since the first production of coal gas from the Hartshorne coal seam in 1988.  The coal gas play began in the Hartshorne coal beds in the Arkoma basin.  Completion in the Mulky and Rowe coal beds in the Cherokee basin of Northeast Oklahoma began, where Panoak has been producing since the early 1990's.

The objective of this project is to develop long term gas reserves from coal seams along with known conventional gas sands in the Cherokee basin in Northeastern Oklahoma.

Primary Objectives

•  To perforate and hydraulically fracture coal seams behind pipe in selective current producing wells.
•  To drill on 160 acres spacing to develop the Mulky, Ironpost, and Rowe coal gas seams.

Secondary Objectives

•  When drilling these wells we will test other seams not previously tested or proven for new methane gas reserves.
•  To test conventional sand zones for gas or oil:  These sands include; Prue, Skinner, Bartlesville and Burgess Sands.

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