Across North America, producers are spending millions of dollars more each year on developing coalbed-methane (CBM) resources. While these wells are not known for prolificacy, the unconventional gas is reliable, dependably surfacing at small but steady amounts, and for years. It is also somewhat easy to amass amounts of CBM reserves and production that are material to the bottom line, relatively speaking. For example, a CBM well, notoriously shallow, may cost $50,000 to drill; a shallow Gulf of Mexico well may run $20 million. Here's a review of some North American CBM-developers' recent activities and plans. Admiral Bay Resources Inc. Denver-based Admiral Bay Resources Inc. (Toronto Venture: ADB) is grabbing investor attention with its CBM projects in the Cherokee Basin in Kansas and in the Appalachian Basin in Pennsylvania. Its board members include Logan Magruder, formerly of Berry Petroleum and now at start-up Quantum Resources with ex-Westport Resources chief Don Wolf; and Greg McMichael, formerly an analyst with A.G. Edwards & Sons and presently a director on the Denbury Resources and Matador Resources boards. The company, which was originally based in Canada, also recently closed its Toronto office. Some 40% of its investors are European. "It's a long story how they got there," says Steven Tedesco, Admiral Bay president and chief executive. The micro-cap company plans some 200 wells through July 2007 on its Kansas and Pennsylvania CBM acreage. Initial production per day per well is expected to average some 30,000 cubic feet. Total-company 12-month production through this July may be some 350 million cubic feet, net. Capex is $26 million, to be funded largely from a new $40-million debt facility from Macquarie Bank that is to become available this month with an initial $15 million available. The company has no debt currently. Its capex budget for 2006-07 includes $21 million for development of Kansas acreage, and $1.9 million for its Revloc project in Pennsylvania. The company is presently fully funded. For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-260-6441.