Canadian-Australian Joint Venture May Accelerate Coal Bed Methane Development in China

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China is eager to develop its 35+ trillion cubic feet of methane gas in order to lower air pollution from, and fatalities in, the country’s vast coal mines. New Australian drilling technology and a Canadian partner with Chinese connections offer the technology-hungry country a more successful and economical way of extracting methane gas from its coal mines.

Australia’s largest private drilling company, Mitchell Drilling Contractors, and Pacific Asia China Energy (TSX: PCE), the first publicly traded Canadian company awarded a coal bed methane concession by China’s coal bed methane development company (CUCBM) plan to team up their respective expertise to help move forward China’s plan to exploit the country’s more than 35 trillion cubic feet of methane gas embedded in its vast coal mines.

Pacific Asia China Energy director and one of Canada’s leading coal bed methane geologists, Dr. David Marchioni, told, “Mitchell Drilling has developed some unique approaches in how they drill their wells.” Pacific Asia needed a drill company for its nearly 900-kilometer square coal bed methane concession. “Originally, we wanted to bring them over to work for us,” Dr. Marchioni told “The more we talked to them, the more they got interested in China, and the more excited they got about it.”

The relationship shows promise, according to Pacific Asia executive vice president Steven Khan, who told StockInterview, “Other companies have already expressed an interest in using the Dymaxion technology.” The joint venture partnership has the exclusive right to use that technology in China. From China’s Premier to the head of CUCBM, the country is excited about coal bed methane technology. Premier Wen Jiabao announced last year, “We should intensify efforts to research, explore and utilize coal bed methane resources.”

Now that Mitchell Drilling is making the Dymaxion technology available in China, many coal bed methane projects can now move forward faster. “They have one of the highest success rates in this type of drilling,” said Steven Khan. “The combination of vertical and horizontal drilling allows for a much more efficient extraction of water from CBM wells while it increases the flow rates of gas from the wells.”


The entire feature can be viewed at the internet news website, It is Part 2 in the China Coal Bed Methane Series, entitled, “China Turns to New Technologies to Reduce Pollution, Improve Mine Safety.” The direct link to the story is:


Julie Ickes


Tel: (941) 929-1640



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Julie Ickes