In each case, a modest amount of initial funding is required to secure a position. Coalbed methane resources are roughly commensurate with reserves of bituminous coal, so that regions such as Canada, China, India, the former states of the CIS, Eastern Europe and Australia are particularly well-endowed, some of these counties have adequate supplies of conventional gas or are otherwise unattractive for coalbed methane ventures, whereas others present unique opportunities. China and India, for example, produce limited volumes of conventional gas and are plagued by severe pollution problems from coal-fired power generation. Coalbed methane has the potential to service local non-polluting energy needs and to complement coal in electricity generation, particularly to accommodate demand surges. From Lowell Petroleum's perspective, the high gas prices and availability of grassroots coalbed methane prospects make such countries prime targets.
China presents a unique opportunity.
Underground methane gas explosions are responsible for exceptionally high human mortality, and this hazard is increasing as mining necessarily extends to progressively greater depths. Opportunities in some small countries arise from a complete absence of conventional gas, for example in parts of Sub-Saharan Africa, or as a result of rapid industrial growth outpacing the collective availability of domestic energy resources, as in parts of Southeast Asia. Lowell Petroleum, personnel have been involved in coalbed methane appraisal in Southern Africa for a number of years, and have identified Zimbabwe as holding particular promise. The Philippines is another country where Lowell Petroleum has a well-developed network of technical contacts who have assisted in the identification of coalbed methane targets. On a similar basis, coalbed methane opportunities have been brought to the Company's attention in Namibia, Botswana, Zambia, Mozambique, North Korea, Taiwan, Great Britain, Spain, Poland, the Ukraine and the Czech Republic.