The Composite Model

Since 2004, Composite Energy has developed a unique business model, designed to develop European Coal Bed Methane in a sensitive and sustained manner.

The model centres around the concept of the "Life of a Well" from the initial purchase of a wellsite through to its abandonment and restoration to former use. The ability to drill boreholes is key to accessing the coal resource, Composite Energy has over the past three years developed its own internal rig operating capability. Currently the company operates two Italian-built rigs which have proven ability to operate successfully close to residential areas.

The process of appraising whether or not gas is present in the coal and can be produced commercially is unique to the Coal Bed Methane resource. To date, it has been the experience that every coal seam is different in their characteristics. The virgin coal seams in Scotland have two particular characteristics which influence the methods employed in accessing and stimulating them: firstly the depth which is directly linked to the permeability of the coal, i.e. the tightness of the coal structure whether it allows the gas to move freely, and secondly that they are water-saturated. This means that the open fractures in coal are saturated with water, which in the case of deep Scottish coals tends to be saline (ancient sea water).

The pressure and weight of the water in the coal seam holds the gas in place even when a well is drilled into the coal and so, in order to produce gas, the water has to be pumped from the coal seam. The effect of this water saturation is the main influence that drives a very specific appraisal process in relation to appraising the commercial viability of a Coal Bed Methane resource.