Aussie coalgas exploration heating up.

More than 40 coalbed methane wells were drilled in Australia's Queensland state in 1995, says the Australian Institute of Petroleum (ALP), and 20 companies or more are engaged in exploring for coalbed methane in all of Australia's six continental states.

According to the AIP's Petroleum Gazette, there is a high level of optimism that coalbed methane can be developed successfully, despite a lack of supporting infrastructure.

Looking to the U.S., the AIP says producers have the advantage of a highly developed pipeline system, but most coalbed methane resources in Australia are a long way from existing pipelines.

Broken Hill Proprietary Group Ltd., however, is …