Energy Innovation Since 1981

Resource Enterprises®

Background

Resource Enterprises (REI) is headquartered in Salt Lake City, Utah, and was established in 1981 to commercialize pre-mining coalbed methane drainage by working in conjunction with and independent of coal mining operations. Our initial venture was a commercial underground gas recovery project performed in cooperation with an active coal mining operation at the Soldier Canyon Mine in Carbon County, Utah. That project, started in 1982, was the first of its kind in the U.S., and was the origin of numerous mining-related opportunities currently being exploited. Recognizing the importance of advanced technology to the economic production of coalbed methane, in late 1982 REI responded to a solicitation issued by the Gas Supply Department of the Gas Research Institute ("GRI"). REI was selected by GRI and contracted to formulate, manage and operate a large-scale, field-oriented research project directed at developing technology to recover low-cost gas from Cretaceous-age coal reservoirs. Over $25 million was invested by GRI and REI in single site and cooperative well research programs comprised of exploration, drilling/completion, and reservoir characterization and evaluation studies.

Through these research efforts, REI has advanced coalbed methane technology in all phases of exploration and developing of the resource including geologic evaluation, drilling and completion technology and operations, core analysis, log analysis, well testing, production and reservoir engineering, reserve determination, and economic evaluations. Each project possesses unique geologic and reservoir characteristics. This provides REI with considerable insight and experience into various operating conditions and further demonstrates our ability to adapt our Resources Enterprises® expertise to specific circumstances to meet project objectives. All of our projects are tailored to each site, adapted to specific geologic and reservoir conditions and are focused at an integrated, multi-resource development plan.

Operations

Our coalbed methane operations may be categorized into three synergistic activities: (1) consulting and engineering, (2) methane drainage drilling services, and (3) energy resource exploitation. These business segments are summarized below.

Consulting and Engineering Services

Our Resource Enterprises® services provides comprehensive technical support to coalbed methane ("CBM") operators and coal mines for coal mine methane ("CMM") drainage from the resource evaluation to the exploitation phase. In addition to providing consulting and systems designs for CBM and CMM recovery, we optimize recovery technology through research and development programs.

Drilling Services

Furthermore, our Resource Enterprises® services provide long hole directional drilling from surface and underground setup locations to mine operators for methane drainage and other applications (e.g., coal exploration, exploration of abandoned mine works, quantification of reserves, water transport, stress relief, etc.) through its drilling services group, REI Drilling, Inc, which owns and operates ten (10) complete drilling systems.

Energy Resource Exploitation

Our Resource Enterprises® expertise provides for involvement in commercial exploration and production of CBM and CMM resources in the areas of: (i) underground gas production, (ii) "waste" mine gas commercialization, and (iii) acquisition and development of coalbed methane and black shale properties.

Consultation Services

REI is well respected worldwide for consultation, recommendations, design and advice, and has long term working relationships for training and consulting services with numerous repeat clients. We provide concise, professional reports and presentations, and communicate very effectively with domestic and international clients.

Geologic and reservoir characteristics of coal and adjacent strata impact design and effectiveness of methane drainage strategies. REI effectively coordinates acquisition of analytical data that will be needed for methane drainage design. This coupled with our practical, hands-on knowledge of mining and methane drainage operations, mine design and projections, and mine scheduling results in a practical and effective approach and solution for methane drainage. We also have solid appreciation of downstream options and coordinate with CMM strategies.